Flowers Foods’ sales continued to decline in the second quarter, weighed down by its warehouse division, prompting the US bakery group to cut its full-year revenue and earnings per share targets.
Despite the company initiating its Project Centennial programme last year to improve efficiency and drive growth, its sales, net income, EBITDA and EPS all dropped in the three months to 15 July.
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The Georgia-based firm, which owns brands like Tastykake and Dave’s Killer Bread, said “given category trends to date”, full-year sales are now expected in a range of US$3.88-$3.92bn, down from $3.93-$4.01bn projected in May. Based on the new forecast, Flowers expects its annual sales to be flat to down 1% this year.
Second-quarter revenue fell 0.9% to US$927m from a year earlier, net income decreased 12.5% to $44.7m and adjusted EBITDA slipped 5.2% to $113.7m.
After adjusted diluted EPS decreased 7.7% to $0.24 in the second quarter, Flower Foods lowered its full-year estimate to $0.85-$0.90.
Alongside the results, Flowers announced plans to close a snack cake plant in North Carolina and move production to other factories.
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