US baker Flowers Foods today (4 February) posted flat quarterly profits as sales were dented by high promotional activity among US retailers.
Shares in Flowers fell 1.8% to US$24.73 in early trading on the New York stock exchange after the company said fourth-quarter net income reached $30.6m, down 4.5% on the year.
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Earnings per diluted share stood at $0.34 – against $0.33 a year ago.
Flowers’ numbers in the fourth quarter of 2008 included an extra week and the company said that, when the quarter was compared on a 12-week basis, earnings per share were up “slightly”.
Fourth-quarter sales were down 7.2% at $576.8m – and flat when the extra week was removed from the numbers.
During the quarter, Flowers sales were affected by “heavy promotional activity” aming retailers, while gross margins also dipped.
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By GlobalDataNevertheless, chairman and CEO George Deese was upbeat about Flowers’ position.
“We exited 2009 better positioned than we entered it – our bakeries are more efficient, our brands and product mix stronger, and our geographic reach broader,” he said.
Over the full year, sales increased 7.7% to $2.6bn over the 53 weeks of fiscal 2008. On a 52-week comparison, 2009 sales increased 9.7%.
Net income was $130.3m, or $1.41 per diluted share, up 9.3% on last year. On a 52-week comparison, 2009 earnings per share increased 11.9%.
Deese added: “Our pricing strategy and strong brands helped Flowers Foods achieve a record year despite continued competitive challenges in our markets.”
For the complete Flowers Foods 2009 earnings release, click here. Check back later for further insight on the company’s numbers.
