Flowers Foods sees branded sales up, store brand sales down
Flowers Foods, a bakery manufacturer that focuses on its name brands but has a private label business, saw a sales dip in its store brands business in their third quarter ended Oct. 9.
The company said its store brand sales decreased $11.5 million or 8.5% to $124.6 million compared with the same period a year ago. Meanwhile, the branded business saw sales increase $31.6 million or 4.8% to $689.1 million.
The Thomasville, Ga.-based company said its branded portfolio, including Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse and Tastykake, increased sales primarily due to favorable price/mix and improved promotional efficiency, partially offset by volume declines from moderating at-home food consumption.
In its store brand sales, the decline was primarily due to volume declines as consumer purchasing shifted to branded retail products, partially offset by increased sales of store branded cake and gluten-free items, per the Q3 report.
Overall, Flowers Foods demonstrated a sale increase of 3.9% to $1.028 billion compared to results in the prior year period. Net income decreased 12.4% to $38.9 million. Adjusted net income increased 3.9% to $64.9 million.
“I'm pleased to report another record third quarter. We generated sales and earnings above our strong year-ago results as our leading brands gained market share and our non-retail business steadily recovers from the effects of the pandemic,” said Ryals McMullian, Flowers Foods' president and CEO. "Our performance is a testament to the dedication of our team members, especially those in our bakeries, who have worked tirelessly to meet consumer demand during this challenging time.”
The large U.S. packaged bakery foods supplier generated 2020 sales of $4.4 billion and is expecting to see sales around $4.3 billion for fiscal year 2021.
"In light of our strong year-to-date performance, we are raising our 2021 sales and earnings guidance," McMullian said. "Investments in innovation and marketing are driving sales growth and brand strength, improving our ability to manage inflationary pressures. We will continue executing on our plans to further strengthen our brands, expand margins, and explore potential acquisitions, and we remain confident in achieving our long-term financial targets."