US packaged bakery goods producer Flowers Foods has posted a rise in quarterly net income as sales were boosted by an acquisition in Texas.
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The company reported net income of US$14.6m, or 33 cents per share, for the third quarter ended 9 October, compared to $12.5m, or 27 cents per share, for the third quarter of 2003.
Sales for the third quarter increased 11.5% to $371.4m. Volume contributed 5.7% of the sales increase, pricing made up 4.5%, and a favourable product mix shift contributed 0.3%.
Increased sales in the foodservice channel, part of which resulted from an acquisition in Texas during the quarter, led the increase. In addition, the Nature’s Own brand of soft variety bread continued to show strong growth and sales of the company’s line of snack cake products, primarily under the Mrs. Freshley’s brand, also increased.
“Our continued growth is made possible by our strong brands, the quality of our products, and our exceptional service in the marketplace, which was especially reflected this quarter in those areas impacted by hurricanes,” president and CEO George Deese said.
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By GlobalData“Our Nature’s Own breads continued to perform very well in the retail sales channel. In addition, sales were up across all other distribution channels during the quarter. New products, new territories, and the Texas acquisition drove the sales increase, continuing the trend we have seen throughout the year,” he added.
During the third quarter, the company completed the acquisition of a closed bakery in Houston and a foodservice customer list from Sara Lee Bakery Group.
