Flowers Foods Inc. Reports Operating Results (10-Q)

Flowers Foods Inc. (FLO, Financial) filed Quarterly Report for the period ended 2010-07-17.

Flowers Foods Inc. has a market cap of $2.37 billion; its shares were traded at around $25.79 with a P/E ratio of 17.4 and P/S ratio of 0.9. The dividend yield of Flowers Foods Inc. stocks is 3.1%. Flowers Foods Inc. had an annual average earning growth of 13.9% over the past 10 years.FLO is in the portfolios of John Keeley of Keeley Fund Management, Diamond Hill Capital of Diamond Hill Capital Management Inc, Columbia Wanger of Columbia Wanger Asset Management, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Manning & Napier Advisors, Inc, Murray Stahl of Horizon Asset Management.

Highlight of Business Operations:

Sales are principally affected by pricing, quality, brand recognition, new product introductions and product line extensions, marketing and service. The company manages these factors to achieve a sales mix favoring its higher-margin branded products, while using store brand products to absorb overhead costs and maximize use of production capacity. During the second quarter and first half of 2010, our sales were negatively impacted by the competitive landscape and higher promotional activity within the baking industry. Sales for the quarter ended July 17, 2010 decreased 1.1% from the quarter ended July 18, 2009. This decrease was primarily due to negative pricing and mix shifts of 3.5% and the effect of the variable interest entity (VIE) deconsolidation, which negatively impacted sales by 0.5%. Acquisitions contributed 1.0% and volume increased 1.9%, partially offsetting these decreases. For the twenty-eight weeks ended July 17, 2010 sales decreased 1.3% from the same period of fiscal 2009. The decrease was primarily due to negative pricing and mix shifts of 2.9% and the effect of the VIE deconsolidation which negatively impacted sales 0.3%. These decreases were partially offset by acquisition sales and volume increases of 1.5% and 0.4%, respectively.

For the twelve weeks ended July 17, 2010, diluted net income per share was $0.37 as compared to $0.33 per share for the twelve weeks ended July 18, 2009, a 12.1% increase. For the twelve weeks ended July 17, 2010, net income attributable to Flowers Foods, Inc. was $33.8 million, an 11.3% increase over $30.3 million reported for the twelve weeks ended July 18, 2009.

For the twenty-eight weeks ended July 17, 2010, diluted net income per share was $0.81 as compared to $0.73 per share for the twenty-eight weeks ended July 18, 2009, a 11.0% increase. For the twenty-eight weeks ended July 17, 2010, net income attributable to Flowers Foods, Inc. was $74.4 million, a 9.9% increase over $67.7 million reported for the twenty-eight weeks ended July 18, 2009.

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