HOMASVILLE, Ga., Aug. 9, 2017 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO), producer of Nature's Own, Wonder, Tastykake, Dave's Killer Bread, and other bakery foods, today reported financial results for the company's 12-week second quarter ended July 15, 2017.
Second Quarter Summary:
Compared to the prior year second quarter where applicable
- Sales decreased 0.9% to $926.6 million. Excluding sales related to a divestiture, sales decreased 0.4%.
- Diluted EPS decreased 12.5% to $0.21.
- Adjusted diluted EPS(1) decreased 7.7% to $0.24.
- Net income decreased 12.5% to $44.7 million.
- Adjusted net income(1) decreased 7.8% to $50.5 million.
- Adjusted EBITDA(2) decreased 5.2% to $113.7 million.
(1) See reconciliations of non-GAAP measures in the financial statements following this release.
(2) Earnings before Interest, Taxes, Depreciation and Amortization, adjusted for certain items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release.
To improve the profitability of its Warehouse segment, the company will close a snack cake bakery in Winston-Salem, North Carolina in early October. Sweet baked goods production will shift to more efficient Flowers' snack cake bakeries. Employees affected by the closure will be offered a severance package.
"We continue to take decisive action to focus on the consumer and become a more efficient, streamlined organization," said Allen Shiver, Flowers Foods president and CEO. "Our portfolio of bread brands, bolstered by the strength of Dave's Killer Bread, continues to gain market share and improve our competitive position. In our cake business, we are taking action to address share losses and improve profitability. Our business is generating strong free cash flow and supporting shareholder returns, our solid financial position, and strategic investments.
"We are executing on our strategic priorities under Project Centennial," Shiver continued. "During the quarter, gross margins increased and manufacturing efficiencies improved. Our cost savings initiatives moved forward in line with our expectations, and we began transitioning to a new, lower-cost, performance-driven structure designed to better address the changing consumer and operating environment. We're on track with our progress, but as our updated guidance reflects, we are realistic about the evolving consumer environment. Our team is driving hard to build shareholder value by reducing costs, strengthening the core business, and capitalizing growth opportunities within the large bakery category."