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Packaged bakery food company Flower Foods (NYSE:FLO) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 1.4% year on year to $1.55 billion. The company’s full-year revenue guidance of $5.35 billion at the midpoint came in 1.3% below analysts’ estimates. Its non-GAAP profit of $0.35 per share was 6.3% below analysts’ consensus estimates.
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Flowers Foods (FLO) Q1 CY2025 Highlights:
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Revenue: $1.55 billion vs analyst estimates of $1.60 billion (1.4% year-on-year decline, 2.7% miss)
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Adjusted EPS: $0.35 vs analyst expectations of $0.37 (6.3% miss)
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Adjusted EBITDA: $162 million vs analyst estimates of $167.9 million (10.4% margin, 3.5% miss)
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The company dropped its revenue guidance for the full year to $5.35 billion at the midpoint from $5.45 billion, a 1.8% decrease
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Management lowered its full-year Adjusted EPS guidance to $1.10 at the midpoint, a 6.4% decrease
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EBITDA guidance for the full year is $548 million at the midpoint, below analyst estimates of $570.2 million
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Operating Margin: 5.5%, in line with the same quarter last year
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Free Cash Flow Margin: 7.1%, up from 4.6% in the same quarter last year
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Organic Revenue was down 3% year on year
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Sales Volumes fell 2.7% year on year (-0.8% in the same quarter last year)
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Market Capitalization: $3.60 billion
"Despite economic uncertainty and greater than expected category declines in the first quarter, Flowers' performance underscores the importance of our leading brands, each of which maintained or gained unit and dollar share," said Ryals McMullian, chairman and CEO of Flowers Foods.
Company Overview
With Wonder Bread as its premier brand, Flower Foods (NYSE:FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.
Sales Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years.
With $5.08 billion in revenue over the past 12 months, Flowers Foods carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.
As you can see below, Flowers Foods grew its sales at a tepid 4.4% compounded annual growth rate over the last three years as consumers bought less of its products. We’ll explore what this means in the "Volume Growth" section.
This quarter, Flowers Foods missed Wall Street’s estimates and reported a rather uninspiring 1.4% year-on-year revenue decline, generating $1.55 billion of revenue.