Flowers Foods, Inc. · NYSE:FLO
Flowers Foods — Q2 2026 Earnings Presentation
33 slides from Flowers Foods's earnings presentation, Aug 20, 2026
Slide 1: Second Quarter 2026 Review
SECOND QUARTER 2026 REVIEW August 20, 2026
Slide 2: Regarding Forward-Looking Statements
REGARDING FORWARD-LOOKING STATEMENTS Statements contained in this presentation and certain other written or oral statements made from time to time by Flowers Foods, Inc. (the “company”, “Flowers Foods”, “Flowers”, “us”, “we”, or “our”) and its representatives that are not historical facts are forwar
Slide 3: Key Messages
KEY MESSAGES • Challenging category backdrop and evolving market dynamics resulted in softer top-line o Pressured household budgets; shifting consumer behavior, promotional/competitive activity o Updated 2026 guidance to reflect first half performance and market conditions • Accelerating initiatives
Slide 4: Category Leadership and Driving Innovation
CATEGORY LEADERSHIP AND DRIVING INNOVATION Nature’s Own Relaunch update Innovation: Reinvent the Bread, Buns & Rolls Strengthening our brands category Simpler ingredients • ~1/3 fewer ingredients • Non-GMO Project Verified • A first for a mainstream brand at national scale • New look/packaging A Lea
Slide 5: Q2 2026 Financial Review
Q2 2026 FINANCIAL REVIEW NET SALES CASH FLOWS — YTD’26 $1.193B -4.0% v PY Cash from Ops $241.5M Dividends $81.0M • Price/Mix +1.8% 1 • Volume –5.8% 2 Capex $44.5M NET INCOME GAAP DILUTED EPS $40.7M -$17.7M v PY $0.19 -$0.09 v PY ADJ. EBITDA 3 ADJ. DILUTED EPS 5 111.3M -19.2% v PY $0.21 -$0.09 v PY •
Slide 6: Q2 2026 Net Sales Highlights
Q2 2026 NET SALES HIGHLIGHTS Net sales decreased 4.0% due to lower volumes in Branded Other net sales decreased by 4.4% due primarily to Retail and Other partially offset by favorable price/mix discontinued business, as well as category pressure and lower price/mix Branded Retail net sales decreased
Slide 7: Q2 2026 Highlights
Q2 2026 HIGHLIGHTS Net income decreased $17.7 million to $40.7 million primarily due to a challenging consumer environment and higher marketing expenses, partially offset by lower interest expense and moderating ingredient costs. Adjusted EBITDA 1 decreased primarily due to lower volumes and gross m
Slide 8: Updated Fiscal 2026 Guidance
UPDATED FISCAL 2026 GUIDANCE (Provided August 20, 2026) NET SALES ADJ. EBITDA 1 ADJ. DIL. EPS 2 Fiscal 2026 $5.O70 to $453 to $0.75 to Considerations $5.142B $481M $0.85 • Category headwinds • Promotional environment • Carryover of price increases OTHER • Innovation Depreciation & amortization Effec
Slide 9: Guidance Drivers
GUIDANCE DRIVERS $1.09 $0.75 – $0.85 FY'25 Adj EBITDA D&A Net Int Exp Inc Tax Exp Extra week '25 FY'26 + Carryover of pricing – Increased debt – Lower pretax and efficiency actions income – Lower interest + Innovation income – Category declines KEY – Strategic investments CONSIDERATIONS – Normalizat
Slide 10: Long-Term Growth Target Scorecard
LONG-TERM GROWTH TARGET SCORECARD LT CAGR1 Targets1 FY’201 FY’21 FY’22 FY’23 FY’24 FY’251 Net Sales 1-2% 6.4% 2.5% 5.2% 5.4% 4.4% 4.1% Adj EBITDA 4-6% 23.4% 7.8% 5.9% 4.4% 5.0% 4.0% Adj dil. EPS 7-9% 36.5% 13.7% 9.8% 5.7% 5.9% 2.1% (1) Off FY’19 base; FY’20 and FY’25 are 53 -week years 10
Slide 11: Volume Trends
VOLUME TRENDS • Branded retail impacted by continued weakness in the fresh packaged bread category, particularly traditional loaf • Other impacted by softness in store brand cake and loaf FLO Volume % Change (Y/Y) TOTAL COMPANY BRANDED RETAIL OTHER 2Q'25 3Q'25 4Q'25 1Q'26 2Q26 2Q'25 3Q'25 4Q'25 1Q'2
Slide 12: Private Label Unit Share
PRIVATE LABEL UNIT SHARE CHANGE IN PRIVATE LABEL UNIT SHARE (Y/Y) 0.2 0.2 0.1 -0.2 -0.3 -0.3 -0.3 -0.4 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana ma
Slide 13: Branded vs Store Brand Market Share
BRANDED VS STORE BRAND MARKET SHARE Long -term trend of branded share gains interrupted by inflationary pressure on consumers Branded Dollar Share Store Branded Dollar Share 78.00 27.00 26.2 26.2 77.0 25.6 26.00 77.00 76.6 24.9 25.00 76.00 24.00 23.3 75.1 75.00 23.0 23.00 74.4 74.00 73.8 73.8 22.00
Slide 14: Flowers Market Share
FLOWERS MARKET SHARE FLO Bread Dollar Share FLO Cake Dollar Share 16.8 16.7 16.5 16.6 15.9 16.0 15.5 15.5 6.6 6.7 6.8 6.1 6.2 6.3 6.1 5.7 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Source: Flowers Custom Database – Circana Total US Mulo+ with Conv 14 Due to a change in methodolo
Slide 15: Flowers Fresh Packaged Breads
FLOWERS FRESH PACKAGED BREADS Dollar Sales % Chg Unit Sales % Chg 0.4% 0.6% -1.6% -1.4% -1.9% -2.4% -2.7% -3.1% -3.0% -3.0% -3.4% -3.4% -3.7% -5.8% -6.6% -9.5% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Source: Flowers Custom Database – Circana Total US Mulo+ with Conv 15 Due to
Slide 16: Flowers Commercial Cake
FLOWERS COMMERCIAL CAKE Dollar Sales % Chg Unit Sales % Chg 7.7% 6.0% 4.4% 4.6% 3.6% 1.2% 1.6% 0.9% -0.9% -4.0% -3.8% -5.0% -5.3% -5.0% -7.2% -9.6% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Source: Flowers Custom Database – Circana Total US Mulo+ with Conv 16 Due to a change in
Slide 17: Organic Category Sales
ORGANIC CATEGORY SALES ORGANIC FRESH PACKAGED BREADS xFLO FLOWERS ORGANICS FLOWERS SHARE OF ORGANICS $1,500.0 80.0 $1,420.0 74.4 74.1 73.0 73.7 $1,340.0 72.5 71.4 $1,260.0 70.0 $1,180.0 $1,100.0 $1,020.0 60.0 $940.0 $860.0 $988.6 $977.9 $965.4 $780.0 $927.5 Millions $850.5 50.0 $700.0 $768.2 $620.0
Slide 18: Gluten-Free Category Sales
GLUTEN-FREE CATEGORY SALES GLUTEN FREE FPB xFLO FLOWERS GF FLOWERS SHARE OF GF $500.0 38.1 38.7 38.6 40.0 36.0 36.0 $450.0 35.0 32.3 $400.0 30.0 $350.0 $144.1 $146.8 $154.9 $154.5 $155.8 25.0 $300.0 $115.3 Millions $250.0 20.0 $200.0 15.0 $150.0 $255.8 $260.7 $251.7 $244.9 $247.5 10.0 $241.9 $100.0
Slide 19: Information Regarding Non-GAAP Financial Measures
INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES Information Regarding Non -GAAP Financial Measures The company prepares its consolidated financial statements in accordance with U .S . Generally Accepted Accounting Principles (GAAP) . However, from time to time, the company may present in its publi
Slide 20: Earnings Per Share to Adjusted Diluted Earnings Per Share
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF EARNINGS PER SHARE TO ADJUSTED DILUTED EARNING S PER SHARE For the 12-Week For the 12-Week Period Ended Period Ended July 18, 2026 July 12, 2025 Net income per diluted common share $ 0.19 $ 0.28 Business process improvement costs NM NM
Slide 21: Gross Margin Excluding Depreciation and Amortization
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF GROSS MARGIN EXCLUDING DEPRECIATION AND AMORTI ZATION TO GROSS MARGIN (000S OMITTED) For the 12-Week Period For the 12-Week Period Ended Ended July 18, 2026 July 12, 2025 Net sales $ 1,192,935 $ 1,242,835 Materials, supplies, labor and
Slide 22: SD&A Expenses to Adjusted SD&A
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF SELLING, DISTRIBUTION AND ADMINISTRATIVE EXPEN SES TO ADJUSTED SD&A (000S OMITTED) For the 12-Week Period For the 12-Week Period Ended Ended July 18, 2026 July 12, 2025 Selling, distribution, and administrative expenses (SD&A) $ 473,185
Slide 23: Net Income to EBITDA and Adjusted EBITDA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (000S OMITTED) For the 12-Week Period For the 12-Week Period Ended Ended July 18, 2026 July 12, 2025 Net income $ 40,656 $ 58,365 Income tax expense 13,598 20,099 Interest expense, net 13,787 15,
Slide 24: Income Tax Expense to Adjusted Income Tax Expense
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF INCOME TAX EXPENSE TO ADJUSTED INCOME TAX EXPENSE (000S OMITTED) For the 12-Week Period For the 12-Week Period Ended Ended July 18, 2026 July 12, 2025 Income tax expense $ 13,598 $ 20,099 Tax impact of: Business process improvement cost
Slide 25: Net Income to Adjusted Net Income
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (000S OMITTED) For the 12-Week Period For the 12-Week Period Ended Ended July 18, 2026 July 12, 2025 Net income $ 40,656 $ 58,365 Business process improvement costs 757 353 Restructuring-related impleme
Slide 26: Net Income to EBITDA and Adjusted EBITDA (Fiscal 2025)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (000S OMITTED) For the 53-Week Year Ended January 3, 2026 Net Income $ 83,825 Income tax expense 31,243 Interest expense, net 59,294 Depreciation and amortization 167,427 EBITDA 341,789 Other pen
Slide 27: Earnings Per Share – Full Year Fiscal 2025
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF EARNINGS PER SHARE – FULL YEAR FISCAL 2025 For the 53-Week Year Ended January 3, 2026 Net Income per Diluted Common Share* $ 0.40 Restructuring and related impairment charges 0.02 Impairment of intangible assets 0.48 Loss on inferior in
Slide 28: Debt to Net Debt and Net Debt to Adjusted EBITDA Ratio
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF DEBT TO NET DEBT AND CALCULATION OF NET DEBT TO TRAILING TWELVE MONTH ADJUSTED EBITDA RATIO (000S OMITTED) As of July 18, 2026 Current maturities of long term debt $ 399,885 Long term debt 1,286,361 Total debt 1,686,246 Less: cash and c
Slide 29: Earnings Per Share – Full Year Fiscal 2026 Guidance
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF EARNINGS PER SHARE – FULL YEAR FISCAL 2026 GUI DANCE RANGE ESTIMATE Reconciliation of Earnings per Share - Full Year Fiscal 2026 Guidance Range Estimate Net income per diluted common share $ 0.64 to $ 0.74 Business process improvement c
Slide 30: Net Income to EBITDA and Adjusted EBITDA (Quarterly and Trailing)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (000S OMITTED) For the 12 Week Period For the 13 Weeks For the 16 Weeks For the 12 Weeks Trailing 53 Week Ended Ended Ended Ended Period Ended October 4, 2025 January 3, 2026 April 25, 2026 July
Slide 31: Net Income to EBITDA and Adjusted EBITDA (Fiscal 2019-2023)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (000S OMITTED) For the Fiscal Year For the Fiscal Year For the Fiscal Year For the Fiscal Year For the Fiscal Year Ended Ended Ended Ended Ended December 30, 2023 December 31, 2022 January 1, 202
Slide 32: Earnings Per Share to Adjusted Earnings Per Share
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SH ARE For the Fiscal Year For the Fiscal Year For the Fiscal Year For the Fiscal Year For the Fiscal Year For the Fiscal Year Ended Ended Ended Ended Ended Ended December 28, 2024 December 30
Slide 33: Net Income to EBITDA and Adjusted EBITDA (Fiscal 2024-2023)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (000S OMITTED) For the Fiscal Year For the Fiscal Year Ended Ended December 28, 2024 December 30, 2023 Net Income $ 248,116 $ 123,416 Income tax expense 80,826 33,691 Interest expense, net 19,623