#United States #Q3 2025 #Simple Mills #Thomasville #Flowers Foods

Flowers Foods Financial Results: Third Quarter 2025

Overview
On November 6, 2025, Flowers Foods, Inc. (NYSE: FLO) unveiled its financial outcomes for the 12-week period ending October 4, 2025. Despite navigating challenging market conditions, the company reported notable figures that reflect both progress and hurdles in its operations.

Financial Highlights

• - Net Sales: The company reported net sales of $1.227 billion, marking an increase of 3.0% from the previous year's third quarter. This growth was largely attributed to the successful acquisition of Simple Mills, which added substantial revenue to the company’s figures.
• - Net Income: However, net income plummeted by 39.2% to $39.5 million, translating to 3.2% of sales. This decline illustrates the adverse effects of economic headwinds impacting consumer spending and an uptick in interest expenses.
• - Adjusted EBITDA: The adjusted EBITDA decreased by 11.4% to $118.1 million, representing 9.6% of net sales. This dip signifies the ongoing struggle amidst inflationary pressures and fluctuating operational costs.
• - Earnings Per Share: Diluted EPS decreased by $0.12 to $0.19, while adjusted diluted EPS fell by $0.10 to $0.23.
• - Impact of Simple Mills: The acquisition of Simple Mills brought in $70.7 million in net sales during this quarter but also accounted for a net loss of $2.0 million. The acquisition is expected to play a pivotal role moving forward, with contributions expected to stabilize as integration progresses.

Leadership Perspective

Ryals McMullian, Chairman and CEO of Flowers Foods, commented on the firm’s performance amidst ongoing challenges in the bread segment. He noted, “Our leading brands continue to demonstrate strong relative performance amid ongoing challenges in the bread category. Our proactive efforts to strategically align our portfolio with consumer demand are yielding positive results.”
McMullian emphasized that the company remains committed to innovating and optimizing its strong brand portfolio to enhance performance and shareholder value.

Fiscal 2025 Outlook

Looking ahead, Flowers Foods adjusted its fiscal 2025 guidance, now anticipating net sales to fall between $5.254 billion and $5.306 billion, representing a growth rate of 2.9% to 4.0% compared to the last year. Notably, the partial-year effect of the Simple Mills acquisition is expected to contribute substantially to these figures.

• - Adjusted Earnings Forecast: The adjusted diluted EPS is expected to range between $1.02 and $1.08, indicating cautious optimism as the firm establishes its footing in a dynamic market.

Operational Insights

Despite an uptick in net sales, the report also highlighted rising costs in materials and labor, which accounted for a significant proportion of sales costs. These expenses were reported at 52.1% of net sales, a troubling increase that the company aims to manage moving forward.

• - Administrative Expenses: Selling, distribution, and administrative expenses saw a slight incline to 38.8% of net sales. This increase was partially driven by a growing workforce and restructuring costs following strategic shifts in operations.
• - Restructuring Charges: Notably, the company incurred restructuring charges of $5.5 million, reflecting ongoing adjustments to match operational capabilities with market demands.

Conclusion

As Flowers Foods navigates through these challenging economic conditions during the third quarter of 2025, its commitment to innovation and strategic acquisitions remains at the forefront. The company's proactive approach to addressing consumer needs and market demands demonstrates resilience and potential for recovery in the upcoming quarters. Investors and observers will be keenly watching how these strategies unfold, particularly with the anticipated benefits from the Simple Mills acquisition, as the bakery giant continues to adapt to a competitive and evolving landscape.

For more details, visit Flowers Foods Investor Relations.