FLOWERS FOODS, INC. REPORTS THIRD QUARTER 2023 RESULTS

THOMASVILLE, Ga., November 9, 2023 – Flowers Foods, Inc. NYSE: FLO) today reported financial results for the company’s 12-week fiscal third quarter ended October 7, 2023.

Third Quarter Summary:
Compared to the prior year third quarter where applicable

  • Sales increased 3.5% to a third-quarter record, $1.199 billion.
  • Net income decreased $87.3 million to a net loss of $46.7 million, primarily due to increased legal settlement expense. Adjusted net income(1) decreased 4.5% to $61.7 million.
  • Adjusted EBITDA(1) increased 0.6% to $121.2 million, representing 10.1% of sales, a 30-basis point decrease.
  • Diluted EPS decreased $0.41 to a loss of $0.22. Adjusted diluted EPS(1) decreased $0.01 to $0.29.

CEO’s Remarks:

“We are pleased to have delivered another quarter with record sales, where we maintained unit share in a challenging environment,” said Ryals McMullian, chairman and CEO of Flowers Foods. “Our pricing strategy proved effective, helping to mitigate inflation and drive top line results. Volume trends improved sequentially, reflecting strong branded retail performance and the diminished impact of business rationalizations. We continued to invest in areas that we expect to drive future growth, including our team, bakeries, brand marketing, and digital initiatives.

“Our diverse product portfolio is well-positioned to meet an increasingly value-focused consumer. We also are investing in innovation to introduce additional differentiated products across the price spectrum, and increasing marketing efforts to aid awareness. Nature’s Own Keto loaf and healthier snacking options from Dave’s Killer Bread are recent examples that are helping to maintain our strong momentum into the fourth quarter and expand our market potential. We remain focused on maximizing our near-term results while enabling future growth in line with our long-term financial targets.”