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Flowers Foods Reports Mixed Results for 3Q15

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Flowers Foods and rising price

Flowers Foods (FLO) has a market cap of $5.6 billion. Flowers Foods’ YTD (year-to-date) price movement has been rising quarter-over-quarter in 2015. After the 3Q15 earnings report, FLO fell by 1.2% to close at $26.64 per share as of November 11, 2015. The price movement on a weekly, monthly, and YTD basis is -0.97%, 1.2%, and 41.5%, respectively.

Currently, the stock is trading at 0.19% above the 20-day moving average, 4.6% above the 50-day moving average, and 17.7% above the 200-day moving average.

The PowerShares Dynamic Food & Beverage Portfolio (PBJ) invests 3.1% of its holdings in Flowers Foods. The YTD price movement of PBJ is 8.4%, as of November 10, 2015.

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Competitors

The competitors of Flowers Foods (FLO) and their market caps are:

  • Campbell Soup (CPB) at $15.1 billion
  • Panera Bread (PNRA) at $4.4 billion
  • Post Holdings (POST) at $3.8 billion

Performance of Flowers Foods in 3Q15

The company reported revenue of $885.3 million in 3Q15, a rise of 4.8% when compared to the revenue of $844.9 million in 3Q14. Revenue from the Direct-Store-Delivery and Warehouse Delivery Segments rose by 4.6% and 6.0%, respectively, in 3Q15 as compared to revenue in 3Q14. Operating income fell by 0.85% in 3Q15 as compared to operating income in 3Q14. Net income fell to $43.8 million in 3Q15 as compared to the net income of $44.6 million in 3Q14. Earnings per share remained the same, at $0.21, for both 3Q15 and 3Q14. Revenue and net income fell by 0.39% and 15.4%, respectively, in 3Q15 on a quarterly basis.

Cash and cash equivalents fell to $8.8 million in 3Q15, as compared to the cash and cash equivalents of $46.5 million in 2Q15. The long-term debt-to-equity ratio rose to 0.73 in 3Q15 from 0.58 in 2Q15.

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Company highlights

In 3Q15, Flowers Food completed the acquisition of Dave’s Killer Bread from its shareholders—these included members of the Dahl family and Goode Partners—for ~$275 million in cash.

The company declared a quarterly dividend of ~$0.15 per share on the company’s common stock. It also completed the acquisition of Alpine Valley Bread, a producer of certified organic and all natural bread, for $120 million in cash and stock.

About Flowers Foods

Flowers Foods produces packaged bakery foods. Its brands include Nature’s Own, Whitewheat, Cobblestone Bread, Barowsky’s Organic, Tastykake, Mi Casa tortillas, and Mrs. Freshley’s snack cakes and pastries.

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