FLO - Flower Foods declines after warning on slow start to the year
2023-05-19 06:54:37 ET
Flower Foods ( NYSE: FLO ) fell in premarket action on Friday after falling short of sales estimates with its Q1 earnings report .
The company noted that price increases to offset inflationary pressures helped lead to a record sales tally of $1.53B (+6% Y/Y) for the quarter. The product mix sold by Flower Foods ( FLO ) continued to return to more normalized levels as consumers dined out of the home more frequently. Private label category sales were noted to have remained strong, although the growth rate was said to be moderating.
Pricing/mix increased 13.6% during the quarter and volume declined 7.3%. The Papa Pita acquisition added 0.6 points to the growth rate.
Branded Retail sales increased 2.5% to $979.3M due to higher prices intended to offset inflationary pressures and improved promotional efficiency, partially offset by volume declines and increased product returns. Other sales increased 15.6% to $555.1M due to higher prices intended to offset inflationary pressures, partially offset by volume declines largely due to exiting lower margin business and targeted sales rationalization in foodservice, cake, and private label.
CEO update: "Our first quarter results reflect the competitive strength of our leading brands and their ability to meet shifting consumer demand in a challenging environment."
Looking ahead, Flower Foods ( FLO ) said it adjusted its outlook for the full fiscal year to account for the slow start to the year and lower-than-expected branded retail sales due to softer category demand. Sales are expected to be in the range of approximately $5.086B to $5.141B vs. $5.2B consensus and adjusted EBITDA of $494M to $528 is anticipated.
Shares of Flower Foods were down 4.92% in early trading to $27.42.
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Flower Foods declines after warning on slow start to the year