Flowers showing signs of improvement

Flowers showing signs of improvement

  • Net sales drop on own label
  • EBITDA dips on central costs
  • Net rises on lower finance expense

US baker Flowers Foods booked a mixed first quarter today (28 May), with lower sales and operating profit but higher net earnings.

The company said sales were down 0.7% to US$1.14bn. Gains in branded sales – up 1% were offset by a 9.6% drop in store-brand retail sales. Flowers said it is focused on "profitable growth" and is shifting its product mix to higher margin lines in branded retail and foodservice.

EBITDA was up in both Flowers' direct store delivery and warehouse units. However, a jump in head office expenses meant that group EBITDA dropped 0.8% to $136.4m. Net earnings edged up slightly on lower interest expenses, rising to $136.4m from $137.5m.

Click here to view the full earnings update.