US bakery group Flowers Foods has booked an increase in first-quarter profits and reaffirmed its full-year earnings guidance – despite a dip in sales.
For the quarter ended 24 April, net income increased 8.8% to reach US$40.7m. Diluted earnings per share increased 10% to $0.44.
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Sales, however, decreased 1.5% in the 16-week period to $795m. The drop was due to an unfavourable pricing/mix of 2.4% and decreased volume of 0.7%.
Nevertheless, Flowers said it was “pleased” with the company’s overall market share performance and earnings results.
“Our core Nature’s Own branded breads and rolls and our newly introduced products demonstrated solid growth in the quarter, and we gained market share on a dollars and units basis in our retail business,” George Deese, chairman and CEO said. “We saw sales trends improve throughout the quarter and that gives us encouragement.”
Looking ahead, despite increased competitive and high promotional activity, Deese said the firm is encouraged by a “slight improvement” in its foodservice business and expects good earnings growth for the full year.
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By GlobalDataFlowers reiterated its forecasted sales growth of 2.5% to 4.5%, excluding future acquisitions, for the full year, as well as diluted earnings per share growth of 10% to 15%.
