Flowers Foods: reports results for third quarter

Thomasville / GA. (ff) Flowers Foods Inc. posted nearly flat quarterly profit, as sales of higher-margin branded products and price increases were offset by the rising cost of flour and sweeteners. The company also forecast full-year profit at the higher end of its previous forecast range and its shares rose three percent.

New, more-efficient production lines that are also closer to some of the company´s markets helped to hold down baking and delivery costs, Flowers Foods says in a statement. In recent years, Flowers has increased sales and margins by expanding into new territories and getting out of some product lines. The maker of Nature´s Own bread and Mrs. Freshley´s baked goods said profit was 22,5 million USD or 0,24 USD a share, compared with 22,6 million USD or 0,24 USD a share a year earlier. Year-ago results included 0,06 USD a share from discontinued operations. Sales rose 7,7 percent to 475,2 million USD for its 12-week third quarter ended October 06.

Flowers Foods´ performance compares to that of Sara Lee Corporation, which said sales rose 4,4 percent in its North American bakery business, while operating profit fell to nine million USD from ten million USD a year ago, excluding one-time items. Both companies have faced all-time high prices for wheat and expect continued cost pressure in 2008. For 2008, the company forecast earnings of 1,07 USD to 1,17 USD a share. Analysts on average have forecast 1,09 USD a share.

For 2007, the company said it now expects earnings of 0,98 USD to 1,02 USD a share. The company had previously forecast 0,92 USD to 1,02 USD. Details of the Q3/2007 results Flowers Foods Inc. has published at https://phx.corporate-ir.net.