Bakery goods maker Flowers Foods Q2 sales rises on Simple Mills acquisition

Flowers Foods

15/08/2025 12:10

Overview

Flowers Foods 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 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/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.24 bln
$1.27 bln (8 Analysts)
Q2 Adjusted EPS
Meet
$0.3
$0.3 (7 Analysts)
Q2 EPS
$0.28
Q2 Adjusted Net Income
Beat
$63.40 mln
$62.50 mln (6 Analysts)
Q2 Net Income
$58.40 mln
Q2 Adjusted EBITDA
Miss
$137.70 mln
$141.70 mln (7 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 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: ID:nPnc2D5P7a

(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.)