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Flowers Foods, Inc. Reports Financial Results for Q4 and FY 2025

Flowers Foods, Inc. (NYSE: FLO) has recently announced its financial outcomes for the fourth quarter and the entirety of the fiscal year ending on January 3, 2026. This report gives a comprehensive look into the company's performance, addressing key metrics that reveal both challenges and areas of growth.

Fourth Quarter Highlights

For the 13-week period concluding January 3, 2026, Flowers Foods saw its net sales rise by 11.0%, totaling $1.233 billion. This increase is attributed to several factors, including the benefit from the Simple Mills acquisition, enhanced pricing strategies, and the additional operational week. However, the company had to contend with a decline in volume, affecting overall profitability.

Despite the sales boost, net income fell sharply, resulting in a net loss of $67.1 million compared to a positive figure of $43.1 million a year earlier. A significant non-cash impairment of intangible assets, amounting to $136.0 million, was cited as a principal reason for this downturn. On a positive note, adjusted net income showed a modest decline of only 1.5%, resting at $45.8 million.

Adjusted EBITDA demonstrated a commendable growth of 14.7%, amounting to $117.4 million, which indicates operational robustness amid challenging market conditions.

Key Financial Metrics

• - Net Sales: $1.233 billion (up 11.0% from previous year)
• - Net Income: ($67.1 million)
• - Adjusted Net Income: $45.8 million (down 1.5%)
• - Adjusted EBITDA: $117.4 million (up 14.7%)
• - Diluted EPS: Loss of $0.32, down from $0.20 a year ago

Simple Mills contributed significantly to the net sales, bringing in $57.5 million but also registering a net loss of $6.2 million. The company’s leadership remains optimistic, indicating that the challenges faced will lead to strategic improvements.

Fiscal Year 2025 Overview

When looking at the full year, Flowers Foods recorded net sales of $5.256 billion, reflecting a 3.0% increase over the previous fiscal year. The results were buoyed by the 53rd operational week in 2025 and the impact of the Simple Mills acquisition, even as volume declines put pressure on pricing.

Nonetheless, net income saw a dramatic 66.2% decrease to $83.8 million, primarily due to the aforementioned impairment of intangible assets. Over the financial year, adjusted net income declined by 14.7% to $231.6 million, suggesting profitability tension despite top-line growth.

Outlook for Fiscal 2026

Looking ahead to the 2026 fiscal year, Flowers Foods anticipates net sales between $5.163 billion to $5.267 billion, indicating a slight decrease relative to 2025. The leadership team is currently engaging in a thorough operational review to counteract ongoing challenges in the marketplace.

Chairman's Insights

Ryals McMullian, Chairman and CEO, mentioned, "Despite the financial challenges presented in 2025, we concluded the year positively thanks to the strength of our brands. We are dedicated to refining our operations and strategies to better navigate the current market environment. I’m confident that our strong cash flow and brand positioning will assist us in driving better results in the long term."

The company aims to enhance operational efficiencies and adjust its supply chain strategies as part of its commitment to long-term shareholder value.

Conclusion

Flowers Foods, Inc. has demonstrated resilience amid fiscal challenges, marked by strategic acquisitions and operational growth. As they focus on improving internal processes and addressing market hurdles, stakeholders remain optimistic about the company's trajectory and future performance.