Flowers Foods Inc. (NYSE: FLO), producer of Mrs. Freshley’s and Tastykake, popular cake brands in vending and micro markets, among other bakery foods, reported robust financial results for the company's 53-week fiscal 2020 and 13-week fiscal fourth quarter, ended Jan. 2, 2021.
In the fourth quarter, adjusted earnings per share of $0.28 came ahead of analysts’ estimates of $0.24. The bottom line increased from $0.18 reported in the year-ago quarter with the additional week contributing $0.02.
The quarter’s sales increased 11.5% to over $1.023 billion, which beat estimates of $998.1 million. Pricing/mix increased 7.7%, but volumes dropped 4.4%. Sales also include the impact of the period’s additional week, amounting to 8.2%. Flowers noted that higher branded retail sales offset the decline in store-branded retail sales, as well as non-retail and other sales.
For the 2020 fiscal year, sales increased 6.4% to almost $4.39 billion. The additional week contributed 1.8%. Annual net income decreased 7.4% to $152.3 million. Adjusted net income increased 36.1% to $278.0 million. Adjusted EBITDA increased 23.4% to $521.7 million, representing 11.9% of sales, a 160-basis point increase. Diluted EPS decreased $0.06 to $0.72, and adjusted diluted EPS increased $0.35 to $1.31. The additional week contributed $0.02.
"Our record results in this uncertain environment demonstrate the strength of our leading brands and the resiliency of our team," said president and chief executive Ryals McMullian. "I am pleased to report fiscal 2020 adjusted earnings above the high end of our guidance. The positive mix shift and the extra week boosted results, and our team leveraged those tailwinds by taking steps to maximize our performance in the near-term and beyond.
"We begin 2021 in a position of strength and expect to build upon our momentum by focusing on our four strategic pillars – developing our team, focusing on brands, prioritizing margins and smart M&A," McMullian continued. "Our digital initiative will be essential to enabling these priorities. This transformational effort will increase our operational agility, improve engagement with consumers, customers, and employees, and maximize the effectiveness of our business strategies."
Click here to see Flower Foods’ fourth-quarter and full-year report.