Flowers Foods lowers guidance as category pressures impact sales

Flower Foods, baked goods products in the United States, have reduced its expectations throughout the year, as category pressure was weighted on the sales of the first quarter.

The quarter was characterized by “economic uncertainty and the expected category.”

He said that the company is investing in “innovation on the direction” that targets “increasing faster categories” as a displacement, pointing to the entry of the brand of the deadly baking company Dave to snacks and the acquisition of Mills Simple, and the US -based biscuit maker.

The Nature Flower Foods owner expected net sales of $ 5.29 billion to $ 5.39 billion, which reflects 3.8 % growth to 5.7 % during the previous year.

Previous instructions expected net sales of $ 5.40 billion to 5.49 billion dollars, indicating 5 % to 7.5 % year on year.

In January, Flowers Foods expanded the snack wallet by obtaining simple factories for $ 795 million.

With the exception of this acquisition, net sales for the 2025 fiscal year will range between 5.08 billion dollars and $ 5.17 billion, which represents a decrease of 0.5 % to 1.3 % growth.

Previous instructions, with the exception of simple mills, net sales of $ 5.18 billion to $ 5.26 billion, or growth from 1.5 % to 3 %.

It is expected that the modified Ebitda will range from $ 534 million to $ 562 million, compared to the previous estimate from 560 million dollars to $ 591 million.

Without the simple MLLS acquisition, the modified EBITDA is expected to range from $ 504 million to $ 529 million, a decrease from the previous guidance from 526 million dollars to $ 554 million.

It is now expected that the modified EPS will rise at $ 1.05 to $ 1.15, compared to the previous estimate from $ 1.11 to $ 1.24.

With the exception of simple mills, it is expected to range between $ 1.13 to $ 1.22, a decrease of 1.18 dollars to $ 1.28.

Makmkulian said that the amended financial guidance of the company “reflects our performance in the first quarter, the difficult consumer environment, and the possibility of increasing the costs of customs tariffs.”

He added: “To improve our results close to the short term, we gain additional space on the shelf, win new business, and take other proactive measures, with our business to enable long -term performance.”

Net sales for a quarter on April 19 decreased to $ 1.55 billion, and net income decreased by 27.4 % to $ 52.9 million.

The modified Ebitda increased by 1.6 % to $ 162 million, while the margin fell 30 basis points to 10.4 %.

The reduced EPS decreased by $ 0.09 to $ 0.25.

The simple Mills added $ 24.3 million in net sales along with a net loss of $ 4.2 million, affecting the profitability of the diluted stock of $ 0.02.

Flowers Foods said that the simple Mills will contribute to 218-225 million dollars in net sales of the year, a decrease from 223 to 230 million dollars previously.

“Flowers Foods reduces the instructions as the sales category has been created and pressed and published by Just food, a brand owned by Globaldata.