US baker Flowers Foods has delayed issuing guidance for 2013 until the outcome of its attempt to buy various assets, including bread operations from Hostess Brands, is clear.
The company has been named the “stalking horse” bidder for various Hostess brands and it is also attempting to push through the proposed acquisition of Sara Lee’s Earthgrains brand in California from Bimbo USA.
“The marketplace remains in flux as the industry awaits the outcome of Hostess’ bankruptcy proceedings and the resulting auctions of assets. We are delaying offering specific guidance for 2013 until we have more clarity regarding the Hostess situation as well as our pending transaction for the Sara Lee and Earthgrains brands in California,” Flowers chairman and CEO George Deese said.
However, Flowers added it expects results to meet or exceed its long-term guidance.
Sales for fiscal 2012 increased 9.8% to US$3.05bn, boosted by higher volumes, and improved mix and the contribution of acquisitions during 2011.
Net income for the year was $136.1m, compared to $123.4m in 2011. EBIT for the year was $218.5m, or 7.2% of sales compared to $189m, or 6.8% of sales last year. The company said the bottom line was negatively impacted by $6.2m in acquisition-related costs.