Flowers Foods Reports Modest Sales Increase but Decline in Profitability for Recent Periods

Flowers Foods, Inc. reported its financial results for the twelve and twenty-eight weeks ended July 12, 2025, revealing a modest increase in net sales but a decline in profitability compared to the previous fiscal period. For the twelve weeks, net sales reached $1.24 billion, a 1.5% increase from $1.22 billion in the same period last year. However, net income fell to $58.4 million, down 12.8% from $67.0 million, primarily due to increased operational costs and higher interest expenses associated with the recent acquisition of Simple Mills. For the twenty-eight weeks, net sales slightly decreased to $2.80 billion from $2.80 billion, while net income dropped 20.5% to $111.4 million from $140.0 million.

The company attributed the changes in financial performance to several factors, including a 5.1% contribution from the Simple Mills acquisition, which was offset by a 2.4% decline in volume and a 1.2% negative price/mix. The acquisition, completed on February 21, 2025, for approximately $848.6 million, is expected to enhance Flowers' presence in the better-for-you snacking category. The integration of Simple Mills is anticipated to drive future growth, although the company is currently facing challenges in the fresh packaged bread category, particularly with traditional loaf products.

Operationally, Flowers Foods has made significant changes, including the closure of its Bailey Street Bakery in Atlanta, which ceased production in April 2025 as part of a strategy to optimize capacity. The company has also restructured its distribution model in California, transitioning from independent distributors to an employee-based model. As of July 12, 2025, Flowers operated 44 bakeries and reported a total employee headcount of approximately 10,000. The company continues to focus on enhancing its product offerings, with recent launches including Wonder snack cakes, which contributed to improved sales in the branded cake segment.

Looking ahead, Flowers Foods remains cautious about the economic environment, particularly regarding inflationary pressures and supply chain disruptions. The company has indicated that it expects to maintain sufficient liquidity to meet its operational needs, with total available liquidity of $637.6 million as of the reporting date. The management anticipates that the integration of Simple Mills and ongoing product innovations will support sales growth, despite the challenges posed by changing consumer preferences and competitive dynamics in the market.