Flowers Foods, Inc. · NYSE:FLO
Flowers Foods — Q4 2024 Earnings Presentation
30 slides from Flowers Foods's earnings presentation, Feb 7, 2025
Slide 1: Fourth Quarter and Full Year 2024 Review
FOURTH QUARTER AND FULL YEAR 2024 REVIEW February 7, 2025
Slide 2: 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 forward-looking statements as defined in th
Slide 3: Key Messages
KEY MESSAGES ¢ Strong execution in a difficult environment, growing 4Q net income, adj. EBITDA and adj. EPS despite net sales decline * Each of our leading bread brands gained or held unit and dollar share in tracked channels * Announced pending acquisition of Simple Mills, expected to enhance growt
Slide 4: Q4 2024 Financial Review
Q4 2024 FINANCIAL REVIEW NET SALES CASH FLOWS — FY’24 ° Cash from Ops Dividends S1.111B «16% v Py $412.7M $203.0M + Price/Mix +0.9%! + Volume -2.5%2 Capex $132.1M NET INCOME GAAP DILUTED EPS S43.1M +20.9% v PY $0.20 +$0.03 v PY ADJ. EBITDA? ADJ. DILUTED EPS4 $102.4M +6.3% v PY $0.22 +$0,.02 v PY + 9
Slide 5: 1,140 1,120 1,100 1,080 1,060 1,040 1,020 1,000
1,140 1,120 1,100 1,080 1,060 1,040 1,020 1,000
Slide 6: Q4 2024 Adj EBITDA Highlights
Q4 2024 ADJ EBITDA HIGHLIGHTS Net income increased $7.4 million to $43.1 million, primarily due to higher operating income resulting from moderating ingredient costs, optimization of our non-retail business, cost savings initiatives, and a decrease in impairment of assets, partially offset by reduce
Slide 7: Fiscal 2025 Guidance
FISCAL 2025 GUIDANCE (Provided February 7, 2025) FLOWERS SIMPLE MILLS! FLOWERS STANDALONE (PARTIAL YEAR) TOTAL Net Sales $5.180 + $5.257B $223 1%. $230M $5.4031. $ 5.487B Adj. EBITDA? $5261 $554M $34. $37M $5601. $591M 537 week expected to j. dil 2 contribute $70-80M net sales, Adj. dil. EPS $1.18 t
Slide 8: Guidance Drivers
GUIDANCE DRIVERS $1.28 FY'24 KEY CONSIDERATIONS Adj EBITDA D&A Net Int Exp Inc Tax Exp + Carryover of new = Higher capital - Higher interest rates | - Similar tax rate y/y business wins, and employed from pricing and efficiency acquisition and ERP | - Increased capex actions — Lower interest + Innov
Slide 9: Long-Term Growth Target Scorecard
LONG-TERM GROWTH TARGET SCORECARD Net Sales 12% 6.4% 2.5% 5.2% 5.4% 4.4% 4.0% AdjEBITDA 4-6% 23.4% 7.8% 5.9% 4.4% 5.0% 4.2% Adj dil. EPS 7-9% 36.5% 13.7% 9.8% 5.7% 5.9% 4.2%! ()_ Off FY'19 base; FY'20 was a 53-week year (2) Implied return using FY'25 guidance midpoint for standalone Flowers, excludi
Slide 10: Simple Mills: Strategic Rationale
SIMPLE MILLS: STRATEGIC RATIONALE ENHANCES GROWTH PROSPECTS - Adds a scaled, better-for-you snacking platform, led by a seasoned management team, that is successfully penetrating mainstream consumers and offers significant white space for future growth - Enables future growth of the Simple Mills bra
Slide 11: Simple Mills: Ample Growth Opportunities
SIMPLE MILLS: AMPLE GROWTH OPPORTUNITIES HH Penetration’ 5% vs95% 2% vs 95% <1% vs71% ove caps) 251\:894 489 s1,310 149.3640 ean 4.2 s10.3 6.4 vs 13.6 2.6 vs7.4 vs legacy comps) Substantial Growth Runway? $195M vs $10B $84M v: $12B $33M vs $3B (SM vs cat. sales) (1) TDP: Total distribution points--C
Slide 12: Private Label Momentum Fading
PRIVATE LABEL MOMENTUM FADING CHANGE IN PRIVATE LABEL UNIT SHARE (Y/Y) 0.9 08 0.7 if -0.2 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Source: Flowers Custom Database - Circana Total US Muio+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current
Slide 13: Volume Trends
VOLUME TRENDS * Branded retail impacted primarily by cake softness with smaller percentage declines in bread * Other pressured by away-from-home weakness as we execute our portfolio strategy, partly offset by increases in private label FLO Volume % Change (Y/Y) TOTAL COMPANY BRANDED RETAIL OTHER 4Q'
Slide 14: Branded Dollar Share
Branded Dollar Share Store Branded Dollar Share 78.0 27.0 26.2 77.3 77.0 76.8 25.1 24.6 25.0 76.3 76.0 23.6 23.1 75.3 22.7 23.0 75.0 74.8 74.0 73.7 21.0 73.0 19.0 72.0 17.0 71.0 70.0 15.0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Slide 15: Flowers Market Share
FLOWERS MARKET SHARE =FLO Bread Dollar Share = = FLO Cake Dollar Share 165 165 167 ae oe a 16.0 16.0 | 61 | 61 | 59 | 59 5.9 59 58 | 5A Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Flowers Custom Database - Circana Total US Mulo+ with Conv 15 Due to a change in methodology
Slide 16: Flowers Fresh Packaged Breads
FLOWERS FRESH PACKAGED BREADS mDollar Sales % Chg == Unit Sales % Chg 76% 5.6% 4.3% 3.4% 2.9% 1.9% 14% 0.7% 0.5% 0.2% 15% || || 94 1.3% 1.5% 19% 18% 1.6% 44% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q12024 Q2 2024 Q3 2024 Q4 2024 Source: Flowers Custom Database - Circana Total US Muio+ with Conv 16 Due to a
Slide 17: Flowers Commercial Cake
FLOWERS COMMERCIAL CAKE mDollar Sales % Chg == Unit Sales % Chg 1.9% 16% -1.7% -3.4% 33% 76% "52% 4.4% "say 18% -75% 16% 7.2% 7.6% -10.0% “15.0% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Flowers Custom Database - Circana Total US Mulo+ with Conv 7 Due to a change in met
Slide 18: Organic Category Sales
ORGANIC CATEGORY SALES mms FLOWERS ORGANICS FLOWERS SHARE OF ORGANICS mmm ORGANIC FRESH PACKAGED BREADS xFLO 73.0 74.2 74.0 71.3 68.8 65.9 2 ora $964.1 2 $848.4 5 $703.2 $765.9 $557.2 $288.8 $318.7 $308.7 $313.9 $320.9 $338.8 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 18 Source: Flowers Custom
Slide 19: Gluten-Free Category Sales
GLUTEN-FREE CATEGORY SALES mmm GLUTEN FREE FPB XFLO = mm FLOWERS GF-_~=—S FLOWERS SHARE OF GF 36.6 35.5 35.7 318 27.8 21.2 46.9 $141.4 GH $1.9 $240.2 SE FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Source: Flowers Custom Database - Circana Total US Mulo+ with Conv Due to a change in methodology and sourc
Slide 20: 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 public st
Slide 21: Net income per diluted common share reconciliation
For the 12-Week For the 12-Week Period Ended Period Ended December 28, 2024 December 30, 2023 Net income per diluted common share $ 0.20 $ 0.17 Business process improvement costs (recoveries) NM 0.01 Impairment of assets NM 0.02 Restructuring charges — NM Acquisition-related costs 0.01 — Legal settl
Slide 22: Gross margin excluding depreciation and amortization
For the 12-Week For the 12-Week Period Ended Period Ended December 28, 2024 December 30, 2023 Net sales $ 1,111,125 $ 1,129,027 Materials, supplies, labor and other production costs (exclusive of depreciation and amortization) 568,463 587,719 Gross margin excluding depreciation and amortization 542,
Slide 23: Adjusted SD&A reconciliation
For the 12-Week For the 12-Week Period Ended Period Ended December 28, 2024 December 30, 2023 Selling, distribution, and administrative expenses $ 444,042 $ 447,905 Business process improvement costs (recoveries) 1,250 (2,900) Acquisition-related costs (2,008) — Legal settlements and related costs (
Slide 24: Adjusted EBITDA reconciliation, 12-week period
For the 12-Week For the 12-Week Period Ended Period Ended December 28, 2024 December 30, 2023 Net income $ 43,122 $ 35,676 Income tax expense 13,783 10,398 Interest expense, net 4,326 3,885 Depreciation and amortization 36,817 37,016 EBITDA 98,048 86,975 Other pension benefit 122 (62) Business proce
Slide 25: Adjusted income tax expense reconciliation
For the 12-Week For the 12-Week Period Ended Period Ended December 28, 2024 December 30, 2023 Income tax expense $ 13,783 $ 10,398 Tax impact of: Business process improvement costs (recoveries) (313) 725 Impairment of assets 112 1,566 Restructuring charges — 57 Acquisition-related costs 502 — Legal
Slide 26: Adjusted net income reconciliation
For the 12-Week For the 12-Week Period Ended Period Ended December 28, 2024 December 30, 2023 Net income $ 43,122 $ 35,676 Business process improvement costs (recoveries) (937) 2,175 Plant closure costs and impairment of assets 338 4,698 Restructuring charges — 169 Acquisition-related costs 1,506 —
Slide 27: Trailing 52-week adjusted EBITDA
Trailing 52-Week Period Ended December 28, 2024 Net income $ 248,116 Income tax expense 80,826 Interest expense, net 19,623 Depreciation and amortization 159,210 EBITDA 507,775 Other pension benefit (273) Business process improvement costs 4,529 Legal settlements and related costs 3,800 Restructurin
Slide 28: Net debt to adjusted EBITDA
As of December 28, 2024 Current maturities of long-term debt $ - Long-term debt 1,021,644 Total debt 1,021,644 Less: Cash and cash equivalents 5,005 Net Debt $ 1,016,639 Adjusted EBITDA for the Trailing Twelve Months Ended December 28, 2024 $ 538,531 Ratio of Net Debt to Trailing Twelve Month Adjust
Slide 29: Fiscal year adjusted EBITDA reconciliation
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, 2022 January 2, 2021 December 28, 2019 Net Income $ 123,416 $ 228,394 $ 206,187 $ 152,318 $ 164,538 Income tax expense (ben
Slide 30: Fiscal year adjusted EPS reconciliation
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, 2023 December 31, 2022 January 1, 2022 January 2, 2021 December 28, 2019 Net income per diluted common share $ 1.