US bakery group Flowers Foods has trimmed its outlook for full-year profits and turnover after disappointing third-quarter sales were dented by higher promotional activity in the retail channel.
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The group, which distributes baked goods to retail and foodservice customers, said third-quarter net income totalled $31.9m, up from $27.4m last year. Sales increased 4.6% to $602.6m.
However chairman and CEO George Deese said: “Our sales results were mixed as our direct-store-delivery (DSD) business took action to protect our market share through promotions.”
“Our team remains focused on managing and investing in our businesses to ensure our ability to deliver strong results over the long term, while taking the necessary actions to maintain our competitive market position in the near term.”
Flowers indicated that full-year sales are now expected to fall in a range of US$2.6bn-2.61bn. Flowers had previously predicted sales of $2.65bn-2.68bn.
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By GlobalDataThe company also lowered the upper end of its earnings guidance by 8 cents, to a range of $1.37-1.40 per share.
Click here for Flowers’ earnings release, or here for just-food’s post conference call insight into the group’s third quarter.
