- 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.
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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.
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