Overview

* Flowers Foods ( FLO ) Q2 net sales rise 1.5% to $1.243 bln, slightly missing estimates, per LSEG data

* Adjusted EPS meets expectations at $0.30, adjusted net income beats estimates

* Adjusted EBITDA falls 4% to $137.7 mln, missing analyst expectations

Outlook

* Flowers Foods ( FLO ) expects 2025 net sales to $5.239 bln-$5.308 bln

* Company expects 2025 adjusted EBITDA of $512 mln-$538 mln

* Adjusted diluted EPS for 2025 projected at $1.00-$1.10

* Simple Mills acquisition to add $218 mln-$225 mln to 2025 sales

Result Drivers

* SIMPLE MILLS ACQUISITION - Acquisition contributed $61.4 mln to net sales, offsetting pricing/mix and volume declines

* COST PRESSURES - Net income decreased due to higher outside purchases, workforce-related costs, and interest expenses

* BREAD CATEGORY CHALLENGES - Macroeconomic uncertainty and shifting consumer demand pressured traditional loaf sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $1.24 $1.27

bln bln (8

Analysts

)

Q2 Meet $0.3 $0.3 (7

Adjusted Analysts

EPS )

Q2 EPS $0.28

Q2 Beat $63.40 $62.50

Adjusted mln mln (6

Net Analysts

Income )

Q2 Net $58.40

Income mln

Q2 Miss $137.70 $141.70

Adjusted mln mln (7

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "buy."

* Wall Street's median 12-month price target for Flowers Foods Inc ( FLO ) is $18.50, about 10.4% above its August 14 closing price of $16.58

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)