Flowers announced US$120m deal for Alpine Valley in September

Flowers announced US$120m deal for Alpine Valley in September

Flowers Foods, the US bakery group, has lifted its full year sales outlook and maintained its earnings guidance, saying that it anticipates top line growth to be supported by acquisitions it has made in the period. 

Flowers said it now anticipates full-year sales of US$3.81-3.84bn and adjusted net income per diluted common share of $0.96-$0.98. Acquisitions are anticipated to contribute approximately $50-55m to sales and be neutral to net income. The company continues to expect capital expenditures in the range of $85-95m.

The company has completed two recent acquisitions, of Dave's Killer Bread and Alpine Valley Bread, in order to expand its presence in the natural and organic bread segments in the US. 

Announcing its third-quarter results after the market closed yesterday (11 November), Flowers revealed sales in the period increased 4.8% to $885m. 

Adjusted EBITDA – stripping out the impact of M&A and restructuring costs - increased 6.1% to $105m. Adjusted net income(3) increased 8.3% to $48m. However, including one-time expenses third quarter EBITDA decreased 0.7% to $99m and net income decreased 1.8% to $44m. 

Allen Shiver, president and CEO, said: "It is an exciting time at Flowers. The team is working hard to capture the potential of our strong brands and geographic reach. Our recently acquired organic bread brands – Dave's Killer Bread and Alpine Valley Bread – are on-trend with changing consumer preferences and provide Flowers with additional growth opportunities through expanded distribution. We recognize the quality and values these brands represent, and a key focus as we bring the Flowers, DKB, and Alpine Valley teams together will be to maintain the integrity of their great brands.”