Flowers Foods Q4 Sales Decline
Published:04-February-2010
By Staff Reporter
Flowers Foods has reported sales of $576.8m for the fourth quarter of fiscal 2009, a decline of 7.2% compared to $621.6m for the same quarter previous year. Net income attributable to Flowers Foods for the quarter was $30.6m or $0.33 per diluted share, a decrease of 4.5% compared to $32.1m or $.34 per diluted share for the previous year quarter.
The sales decrease of 7.2% was attributable to unfavorable pricing/mix of 2.3% and the absence of the additional week, as compared to fiscal 2008, negatively impacted sales 7.2%. Partially offsetting these declines were a 1.7% contribution from acquisitions and increased volume of 0.6%.
For the full year 2009, the net sales were $2.6bn, an increase of 7.7% compared to $2.41bn for the previous year. Net income for the full year was $130.3m or $1.41 per diluted share, an increase of 9.3% compared to $119.2m or $1.28 per diluted share for previous fiscal year.
The sales increase of 7.7% for the full year 2009 was achieved through a favorable pricing/mix of 2.6% and a contribution from acquisitions of 7.3%. These increases were negatively impacted by volume declines of 0.2% and the lack of the additional week compared to fiscal 2008 had a negative effect of 2%.
George Deese, chairman and chief executive officer of Flower Foods, said: "In light of the myriad challenges we faced in 2009, we are very pleased to report sales and earnings growth in line with our previously provided guidance. Our pricing strategy and strong brands helped Flowers Foods achieve a record year despite continued competitive challenges in our markets. 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.
“Our team is focused on opportunities to continue growing through new product innovation, expansion markets, and further penetration of our core territories to deliver earnings growth for our shareholders over the long term."
For fiscal 2010, the company expects sales growth of 2.5% to 4.5%, excluding future acquisitions, and diluted earnings per share growth of 10% to 15%. Capital expenditures for fiscal 2010 are expected to be $85m to $95m.
