US: Flat profits in Flowers Foods' Q3
Flowers Foods posted falt profit and expects challenges to come
Higher ingredient costs hit US baker Flower Foods's third-quarter profits, it was announced today (10 November).
The company said its net income totaled US$31m for the quarter ended 8 October, down slightly from $31.2m in the same period last year.
Revenue rose to $675.4m, a 13% rise year-on-year, bolstered by the April acquisition of the Tastykake brand.
George Deese, Flowers Foods' chairman and CEO said higher ingredient costs were not fully offset by pricing and the US economy impacted sales.
He said: "Flowers Foods achieved strong sales growth in the quarter and delivered solid earnings despite the challenges presented by ongoing economic uncertainty.
"The weak economy and high unemployment continued to pressure the markets and impact consumer buying patterns during the quarter. However, we remain confident in our team's ability to manage through those challenges and leverage our long history of taking care of customers' needs, outperforming in the marketplace, and creating long-term value for shareholders."
Steve Kinsey, executive vice president and CFO, anticipates earnings growth for the year will be on the lower end of the company's guidance range of flat to 5%. He also forecaste input costs will increase 4% to 8% on an annual basis.
Flowers Foods has forecast a return to earnings growth in 2012 despite continued pressure from input costs....
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