Flowers Foods, Inc. reported financial results for the company's 12-week second quarter ended July 12, 2025.
Net sales increased by 1.5% to $1.243 billion, driven by the Simple Mills acquisition benefit.
Net income decreased by 12.8% to $58.4 million, primarily due to outside purchases, increased workforce-related costs, and higher interest expense.
Net Sales Increase
Net sales rose by 1.5% to $1.243 billion, supported by the Simple Mills acquisition benefit.
Net Income Decrease
Net income decreased by 12.8% to $58.4 million, impacted by greater outside purchases and higher costs.
Adjusted EBITDA Decrease
Adjusted EBITDA decreased by 4.0% to $137.7 million, representing 11.1% of net sales.
Portfolio Strategy Focus
The company is investing in innovation and M&A to align with consumer demand for better-for-you products.
Revised 2025 Guidance
The revised guidance reflects lower-than-expected revenues due to challenges in traditional loaf sales and increased competition.
- The macroeconomic uncertainty and consumer demand shifts have put pressure on the bread category, affecting sales.
- By investing in innovation and acquisitions, Flowers Foods aims to transform its portfolio to meet evolving consumer preferences and drive growth.
Despite challenges in the bread category, Flowers Foods remains focused on its portfolio strategy to drive growth and maximize performance in the near term and long term.