Flowers Foods (FLO) investor relations material

Executive summary

• Strategic portfolio alignment and transformation, including the Simple Mills acquisition, drove net sales growth and share gains for leading brands despite ongoing bread category pressures and a challenging consumer environment.

• Focus on innovation with new product launches such as higher-protein loaves and DKB Supreme Sourdough, and redefining traditional loaf with value and better-for-you attributes.

• Leadership transition as Steve Kinsey concludes his tenure as CFO after 18 years.

• Guidance range narrowed for Q4, reflecting greater certainty.

Financial highlights

• Q3 2025 net sales rose 3.0% year-over-year to $1.227B, driven by the Simple Mills acquisition, while price/mix and volume were negative.

• Net income fell 39.2% to $39.5M, primarily due to lower operating income and higher net interest expense.

• Adjusted EBITDA decreased 11.4% to $118.1M, with margin down 160 bps to 9.6%.

• GAAP diluted EPS was $0.19, down $0.12 year-over-year; adjusted diluted EPS was $0.23, down $0.10.

• Year-to-date cash from operations was $320.8M; capex $80.3M; dividends $157.0M; acquisition spend $791.9M.

Outlook and guidance

• Fiscal 2025 net sales expected at $5.254–$5.306B, with adjusted EBITDA of $515–$532M and adjusted diluted EPS of $1.02–$1.08; 53rd week projected to add $70–80M net sales and ~$0.02 adjusted EPS.

• Category demand expected to normalize as the economy strengthens, but weakness may persist into 2026.

• No formal guidance for 2026 provided, but inflationary pressures on input costs anticipated.

• Key considerations include consumer resiliency, promotional environment, Simple Mills integration, cost inflation mitigation, and ERP rollout.