Flowers Foods: Announces First Quarter Results

Thomasville / GA. (ff) Flowers Foods Inc. reported sales and earnings for its 16-week first quarter ended April 25, 2009. In summary, Flowers Foods:

• Increased first quarter sales 19,3 percent.
• Improved net income attributable to Flowers Foods by 4,5 percent over last year´s first quarter.
• Delivered diluted earnings per share of 0,40 USD for the quarter.
• Achieved 1,5 percent unit volume increase in its direct-store-delivery (DSD) segment, excluding acquisitions and new western markets.
• Achieved branded retail sales increase of 14,8 percent over last year´s quarter.
• Generated net cash from operating activities of 58,3 million USD.

«We are pleased with the results this quarter. Our team delivered sales growth in excess of 19 percent and earnings in line with our expectation in spite of headwinds from the economy and competitive pressures», commented George E. Deese, chairman, chief executive officer, and president. «We are particularly pleased with the results considering we faced continued challenges in the quarter from higher input costs compared to the same time frame last year. Our branded retail sales grew 14,8 percent in the quarter, evidence that Flowers´ brands are performing well in recessionary conditions and a testament to our product quality, brand strength, and execution in the marketplace.

We remain focused on the bakery segment and we continue to see opportunities for growth. Consumers are eating more at home due to the economy, which translates into more purchases in the bread aisle. Although other food categories in the supermarket are experiencing growth in private label, IRI-GfK reports that private label share in the fresh packaged bread category grew less than one percentage point in the trailing twelve months. The strength of Nature´s Own and our other brands allows us to increase our promotional activity, and we will continue to do so to protect and grow our market share and our brand presence», Deese said. «To help offset promotional activities, we are reducing our cost through improved efficiencies and we also will benefit from improved input costs in the second half of the year. We remain confident in our strategy of growing our core markets, expanding into new markets and strengthening the company through strategic acquisitions».

Info: Flowers Foods Announces First Quarter Results (complete press release).