US baker Flowers Foods today (5 February) improved its forecast for sales growth and earnings in 2009 after posting improved results for 2008.
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The company said it is now targeting 2009 net income of $127.8-138.3m – up from guidance of $124.1-135.3m it gave in November.
Flowers also said it now expects sales growth of 12.6-14.5% in 2009 – up from the November guidance of 12.2-14%. This equates to sales of US$2.72-2.77bn, Flowers said.
The improved forecasts came after the company booked a 26% jump in net income to $119.2m for 2008. Sales climbed 18.6% to $2.41bn.
Gross margins, however, were affected by higher ingredients costs. Flowers said the cost of ingredients rose 24% on the year, leading margins to fall from 49% of sales in 2007 to 47.7% in 2008.
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By GlobalDataNevertheless, Flowers chairman, CEO and president George Deese was upbeat about the year ahead. “Our brands are strong, our bakeries are efficient, and our strategies are sound,” he said. “We expect to deliver another year of good performance in spite of the uncertain economic environment.”
Fourth-quarter net income leapt 49.7% to $32.1m, despite impairment charges of $3.1m from bakery closures. Fourth-quarter sales climbed 31.2% to $621.6m.
