Flowers Foods Q1 Sales Rise 1.1% to $1.572B; Net Income Drops 20.6%
Flowers Foods' Q1 net sales rose 1.1% to $1.572 billion while net income fell 20.6% to $42.1 million, with adjusted EPS of $0.29 as a 3.3% volume decline offset pricing and acquisition gains. Board declared $0.125 quarterly dividend and reaffirmed fiscal 2026 guidance of $5.163-5.267B revenue, $0.80-0.90 EPS.
1. Q1 Financial Results
In the 16-week first quarter, Flowers Foods achieved net sales of $1.572 billion, up 1.1% year-over-year, while net income declined 20.6% to $42.1 million. GAAP EPS fell to $0.20 and adjusted EPS moved down to $0.29, reflecting non-recurring costs and restructuring adjustments.
2. Operational Drivers
Revenue growth was driven by a 2.1% pricing/mix improvement and the Simple Mills acquisition, which added 2.3% to net sales. These gains were offset by a 3.3% decline in volume, reflecting softer consumer demand and category headwinds.
3. Capital Allocation and Outlook
The board approved a $0.125 per share quarterly dividend and reaffirmed full-year fiscal 2026 targets of $5.163-5.267 billion in net sales and $0.80-0.90 in adjusted EPS, emphasizing disciplined cost management and debt reduction alongside brand investments.