US baker Flowers Foods has reported a slight lift in third-quarter earnings, which were boosted by “solid” sales gains.
In a regulatory filing yesterday (8 November) the company said net income rose to US$31.2m in the three months to 6 October, up from $31m in the comparable period of last year. EPS dropped 4.3% to $0.22 after a one-time acquisition related charge of $4m.
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The company booked a 6.2% increase in sales, which CEO George Deese described as a “solid” performance in the face competitive market conditions and higher promotional activity.
Flowers raised its sales guidance to a range of 7-9% and tightened its EPS outlook to a 3.5-5% range. The company said in the fourth quarter it had begun to take pricing action to offset higher costs.
Flowers management has suggested the US bakery sector is undergoing a process of consolidation that the company hopes to lead. The company has indicated it hopes to increase its geographical spread through the acquisition of regional bakers. During the period the group completed the purchase of Maine-based Lepage Bakeries.
Last month, meanwhile, Flowers acquired the licence to the Earthgrains and Sara Lee brands in California from Grupo Bimbo.
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By GlobalData
