US packaged bakery foods company Flowers Foods has reported net income of $20.0m for its 16-week first quarter ended on 23 April 2005 compared to net income of $13.7m for same period last year.
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Sales for the first quarter increased to $506.0m compared to $457.8m for last year’s first quarter. Price increases in all channels of distribution contributed 4.3% of the gain in sales while a favourable shift in product mix and increased volume contributed 6.2%, the company said.
Increased sales offset higher energy, packaging and labour costs, including the cost to start a new bread line in the Denton, Texas facility, it said. Higher flour costs were partially offset by lower costs of other ingredients.
“The strength of Flowers Foods’ strategy to provide quality products through multiple distribution channels is reflected in our sales growth in both retail and foodservice channels,” said George E Deese, president and chief executive officer. “Product innovation in the foodservice channel, in partnership with our customers, contributed significantly to our results this quarter.”
The company is increasing its fiscal 2005 sales guidance to $1.650bn to $1.675bn from prior guidance of $1.60bn to $1.625bn.
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By GlobalData
