US bakery group Flowers Foods has reported lower first-quarter profits as costs linked to its acquisition of assets from the former Hostess Brands weighed on its bottom line.
Net income for the 16 weeks to 19 April was US$61.1m, down from $112m a year earlier. Operating income was also down, falling from $150m to $98.2m.
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Flowers pointed to the “carrying costs” for the purchased Hostess facilities and interest expenses related to the funding of the acquisition.
It also said earnings in last year’s first quarter were helped by a $50.1m benefit on its acquisition of former Sara lee assets.
Flowers saw its top line improve, with sales up 2.6% at $1.16bn. However, the higher sales came from the impact of price, mix and acquisitions. Volumes fell 1.5%.
Shares in Flowers were down 3.68% at $20.01 at 09:32 ET.
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