Flowers Foods Cuts Annual Outlook As Tariffs Bite Into Profit

Nabaparna Bhattacharya

Fri, May 16, 2025, 9:08 AM 2 min read

Flowers Foods, Inc. (NYSE:FLO) reported first-quarter adjusted net per stock of 35 cents, missing the expert statement estimation of 38 cents.

Quarterly income of $1.55 cardinal (down 1.4% twelvemonth implicit year) missed the expert statement estimation of $1.60 billion.

Adjusted EBITDA accrued 1.6% to $162.0 million, representing 10.4% of nett sales, a 30-basis constituent increase.

The institution said it had completed the acquisition of Simple Mills, which contributed $24.3 million in nett sales, nett nonaccomplishment of $4.2 million, and $3.6 million to adjusted EBITDA.

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“Despite economical uncertainty and greater than expected class declines successful the archetypal quarter, Flowers’ show underscores the value of our starring brands, each of which maintained oregon gained portion and dollar share. To mitigate class weakness, we are continuing to put successful on-trend innovation and targeting important opportunities successful faster-growing categories and adjacencies,” said Ryals McMullian, president and CEO of Flowers Foods.

“Our adjusted 2025 fiscal guidance reflects our archetypal 4th performance, the challenging user environment, and the imaginable for accrued tariff costs. To amended our near-term results, we are gaining further support space, winning caller business, and taking different proactive measures portion evolving our concern to alteration long-term outperformance,” McMullian added.

Net income decreased 27.4% to $53.0 million, representing 3.4% of sales, a 120-basis constituent alteration twelvemonth implicit year.

Outlook: Flowers Foods lowered its FY2025 GAAP EPS guidance to $0.95 to $1.05, beneath the $1.16 statement estimate.

The institution besides chopped its income outlook to $5.30 cardinal to $5.39 cardinal from the anterior $5.40 cardinal to $5.49 cardinal range, compared with the $5.41 cardinal estimate.

Flowers Foods chopped its FY2025 adjusted EPS guidance to $1.05 to $1.15 from $1.18 to $1.28, compared with the $1.16 estimate.

It besides lowered income guidance, excluding the Simple Mills acquisition, to $5.08 cardinal to $5.17 cardinal from $5.18 cardinal to $5.26 billion, compared with the $5.41 cardinal estimate.

According to Benzinga Pro, FLO banal has mislaid implicit 32% successful the past year. Investors tin summation vulnerability to the banal via First Trust Cons. Staples AlphaDEX (NYSE:FXG).

Price Action: FLO shares are trading little by 0.38% to $17.01 at the past cheque connected Friday.

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