NYSE$FLO

Flowers Foods · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Flowers Foods' first quarter 2023 results reflected the competitive strength of its brands amidst a challenging environment.

Flowers Foods reported a 6.9% increase in sales, reaching a quarter-record of $1.534 billion, driven by price increases to offset inflationary pressures; however, net income decreased by 17.4% to $70.7 million, and diluted EPS decreased to $0.33.

  • Sales increased 6.9% to a quarter-record $1.534 billion.
  • Net income decreased 17.4% to $70.7 million.
  • Diluted EPS decreased $0.07 to $0.33.
  • The company is adjusting its outlook for fiscal 2023 to account for the slow start to the year and lower-than-expected branded retail sales due to softer category demand.

Headline financials

Total Revenue

$1.53B

Previous: $1.44B+6.9%
EPS (adj)

$0.38

Previous: $0.44-13.6%
Sales Volume Change

-7.3%

No prior period
Capital Expenditures

-$34M

Previous: -$50.5M+32.8%
Free Cash Flow

$36.8M

Previous: $35.1M+4.7%
Net Income

$70.7M

Previous: $85.6M-17.4%
Operating Income

$93.8M

Previous: $112M-16.3%
Gross Profit

$734M

Previous: $711M+3.1%
Cash & Equivalents

$27.7M

Previous: $205M-86.5%
Total Assets

$3.48B

Previous: $3.33B+4.5%
Stock-Based Comp

$9.84M

Previous: $9.08M+8.3%

Revenue & EPS history

Flowers Foods · Revenue · Quarterly

$1.53B

Q1 2023+6.9%vs Q1 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Flowers Foods · $979M total across 1 segment · Q1 2023

  • Branded Retail
    $979M+2.5%

Forward guidance

For the 52-week Fiscal 2023, the Company Expects: Sales in the range of approximately $5.086 billion to $5.141 billion, representing an increase of approximately 5.8% to 7.0% compared to the prior year period. Adjusted EBITDA in the range of approximately $494 million to $528 million. Adjusted EPS in the range of approximately $1.15 to $1.25.

Tailwinds

  • Sales in the range of approximately $5.086 billion to $5.141 billion, representing an increase of approximately 5.8% to 7.0% compared to the prior year period.
  • Adjusted EBITDA in the range of approximately $494 million to $528 million.
  • Adjusted EPS in the range of approximately $1.15 to $1.25.
  • Depreciation and amortization in the range of $160 million to $165 million
  • Net interest expense of approximately $9 million to $13 million

Headwinds

  • An effective tax rate of approximately 25%
  • Weighted average diluted share count for the year of approximately 213 million shares
  • Capital expenditures in the range of $140 million to $150 million, with $30 million to $40 million related to the ERP upgrade
  • We are adjusting our outlook for fiscal 2023 to account for the slow start to the year and lower-than-expected branded retail sales due to softer category demand.
  • Adapting our business to make it even more resilient in the rapidly evolving consumer environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.7%

Avg return

Earnings day

-0.8%

Avg return

5 days after

-1.7%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+10.8%

Q4 2014

Best reaction

-17.5%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%+11.7%+11.3%
Q4 2025-8.7%-12.9%-22.6%
Q3 2025+1.9%-1.2%-7.5%
Q2 2025-5.3%-5.2%-17.1%
Q1 2025+1.5%-3.3%-6.4%
Q4 2024-1.3%-4.8%+0.3%
Q3 2024-2.1%-1.8%-0.4%
Q2 2024+1.5%+1.8%+2.3%
Q1 2024-4.2%-4.9%-12.5%
Q4 2023-4.2%-4.3%-0.9%
Q3 2023-6.9%-4.7%-2.0%
Q2 2023+3.9%+0.5%-7.2%
Q1 2023-9.2%-9.1%-12.9%
Q4 2022+0.2%+0.4%-0.9%
Q3 2022-5.4%-0.6%+1.6%
Q2 2022-0.2%+1.6%-3.2%
Q1 2022+4.5%+5.0%-2.8%
Q4 2021-1.2%-0.5%-13.9%
Q3 2021+2.3%+5.3%+1.7%
Q2 2021+5.7%+9.3%+2.3%
Q1 2021-2.1%-2.3%-3.8%
Q4 2020-0.1%-1.5%+3.0%
Q3 2020-2.4%-6.9%-7.2%
Q2 2020+2.3%+4.4%+3.4%
Q1 2020+1.6%+3.3%-1.0%
Q4 2019+0.4%+2.8%+7.8%
Q3 2019-1.1%+0.0%+3.6%
Q2 2019-4.7%-7.0%-5.5%
Q1 2019+7.1%+7.8%+9.6%
Q4 2018+1.5%+0.6%+1.6%
Q3 2018-1.1%+5.5%+0.8%
Q2 2018-6.0%-6.1%-1.5%
Q1 2018-10.2%-10.9%-5.6%
Q4 2017+5.6%+7.9%+13.4%
Q3 2017+2.6%+5.6%+13.2%
Q2 2017+0.0%+3.5%+2.0%
Q1 2017-6.6%-5.0%-9.9%
Q4 2016-8.3%-5.5%-5.5%
Q3 2016-0.5%+3.5%+23.3%
Q2 2016-15.8%-14.0%-17.7%
Q1 2016+1.5%
Q4 2015-17.5%
Q3 2015-12.8%
Q2 2015+6.4%
Q1 2015-2.7%
Q4 2014+10.8%
Q3 2014-2.2%
Q2 2014-3.6%
Q1 2014+3.0%
Q4 2013-4.5%
Q3 2013-8.9%
Q2 2013-3.1%
Q1 2013-2.0%
Q4 2012+1.1%
Q3 2012-1.5%
Q2 2012-4.0%
Q1 2012+6.7%
Q4 2009+1.5%
Q3 2011+0.7%
Q2 2011-11.7%
Q1 2011-0.4%
Q3 2010+0.7%
Q2 2010+0.2%
Q4 2010+0.2%
Q1 2010-0.1%

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