Flowers Foods, Inc. (FLO) Reports Mixed Q2, Adjusts Guidance

Flowers Foods, Inc. (NYSE: FLO) recently released its financial results for the second quarter of 2025, reflecting a mixed performance and necessitating an adjustment in its annual guidance. The company experienced both challenges and opportunities in the current market environment.

Flowes Foods, Inc. Reports Mixed Q2 Results

The second quarter of 2025 presented a challenging landscape for Flowers Foods, Inc., as the company reported a 1.5% increase in net sales to $1.243 billion, primarily attributed to the acquisition of Simple Mills. This acquisition contributed 5.1% to the net sales growth, effectively offsetting declines in pricing/mix and volume.

Despite this increase, the company’s net income decreased by 12.8% to $58.4 million, representing 4.7% of sales, which marks an 80-basis point decrease. This decline was largely due to increased costs related to workforce and interest expenses. Adjusted net income also saw a 16.0% decrease to $63.4 million.

In terms of earnings per share (EPS), Flowers Foods reported a diluted EPS of $0.28 and the adjusted diluted EPS was slightly higher at $0.30, driven by adjustments for acquisition-related costs and restructuring charges, and beating the expected $0.29.

The company’s adjusted EBITDA decreased by 4.0% to $137.7 million, representing 11.1% of net sales, a 60-basis point decrease from the previous year. The Simple Mills acquisition contributed $61.4 million in net sales, though it incurred a net loss of $2.1 million, adding $10.9 million to adjusted EBITDA, and a negative impact of $0.01 on diluted EPS.

Comparing these results to expectations, Flowers Foods fell short of the anticipated revenue of $1.27 billion. The shortfall was attributed to a softer performance in traditional loaf sales and increased competition, which the company expects to continue affecting its performance throughout the year. Despite these challenges, the company remains focused on leveraging its portfolio strategy to navigate the current market conditions.

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Flowers Foods Adjusts Guidance Downwards

In light of the second quarter results, Flowers Foods has revised its guidance for the full fiscal year 2025. The company now anticipates net sales to range from $5.239 billion to $5.308 billion, reflecting a growth of 2.7% to 4.0% compared to the previous year. This is a downward revision from the prior guidance, which projected net sales between $5.297 billion and $5.395 billion. Excluding the Simple Mills acquisition, the company expects net sales to range from $5.021 billion to $5.083 billion, indicating a change of -1.6% to -0.4% compared to the previous year.

For adjusted EBITDA, Flowers Foods now projects a range of $512 million to $538 million, down from the previous guidance of $534 million to $562 million. Excluding the Simple Mills acquisition, adjusted EBITDA is expected to be between $482 million and $505 million. The acquisition is anticipated to contribute $30 million to $33 million to adjusted EBITDA, consistent with earlier guidance. Additionally, the 53rd week in the fiscal year is expected to contribute $5 million to $7 million to adjusted EBITDA.

Adjusted diluted EPS for the full year is now projected to be between $1.00 and $1.10, a slight decrease from the prior guidance of $1.05 to $1.15. Excluding the Simple Mills acquisition, adjusted diluted EPS is expected to range from $1.08 to $1.17.

The acquisition is expected to have a negative impact of $0.08 to $0.07 on adjusted diluted EPS, while the 53rd week is anticipated to contribute approximately $0.02. Flowers Foods remains committed to disciplined cost-saving efforts and strategic investments in innovation and mergers and acquisitions to align its portfolio with consumer demand and drive long-term growth.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.