Q1 2024 Flowers Foods Inc Earnings Call (Pre-recorded) Transcript
Key Points
- Flowers Foods Inc (FLO) achieved a 2.8% increase in total sales for the first quarter compared to the prior year.
- Branded retail volumes increased by 0.3%, indicating strong performance in their core product lines.
- Gross margin as a percentage of sales increased by 160 basis points to 49.4%, benefiting from prior pricing actions and lower ingredient costs.
- The company introduced 11 new products, including successful launches like Keto Soft White Buns and Nature's Own Perfectly Crafted flatbreads.
- Flowers Foods Inc (FLO) increased its savings initiatives target from $30-$40 million to $40-$50 million, reflecting confidence in cost-saving measures.
- Volume decreased by 0.8% due to targeted sales rationalizations and away-from-home business exits.
- Selling, distribution, and administrative expenses as a percentage of sales increased by 110 basis points to 39.7%, driven by higher labor and technology expenses.
- The economic environment remains uncertain, impacting consumer behavior and promotional effectiveness.
- The company is cautious about the uncertain consumer and promotional environment, which could affect future performance.
- Flowers Foods Inc (FLO) faces increased capital spending related to supply chain optimization, which may impact short-term financial results.
Hello, everyone. This is J.T. Rieck, EVP of Finance and Investor Relations. Welcome to the prerecorded discussion of Flowers Foods' 2024 First Quarter Results. We will host a live Q&A session this evening at 5:00 p.m. Eastern. Further details about the live call, along with our earnings release, a transcript of these recorded remarks and a related slide presentation are posted on the Investors section of flowersfoods.com.
Before we get started, keep in mind that the information presented here may include forward-looking statements about the company's performance. Although we believe these statements to be reasonable, they are subject to risks and uncertainties that could cause actual results to differ materially. In addition to what you hear in these remarks, important factors relating to Flowers Foods business are fully detailed in our SEC filings.
Providing remarks today are Ryals McMullian, Chairman and CEO; and Steve Kinsey, our CFO. Ryals, I'll turn it over to you.
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