Flowers Foods, Inc. · NYSE:FLO
Flowers Foods — Raymond James 46th Annual Institutional Investors Conference (March 2025)
58 slides from Flowers Foods's conference presentation, Mar 3, 2025
Slide 1: Raymond James 46th Annual Institutional Investors Conference
nee / / — . 4 ‘<Flowers FOODS RAYMOND JAMES 46TH ANNUAL INSTITUTIONAL INVESTORS CONFERENCE March 3, 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
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Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS LEADER IN LARGE AND ATTRACTIVE CATEGORIES Operate the #1 loaf, organic, and gluten-free bread brands; gaining share in categories with stability throughout the economic cycle ICONIC BRANDS DRIVE GROWTH Brand-focused portfolio strategy drives above-market growth via innovation,
Slide 5: 100+ Year History of Growth and Evolution
100+ YEAR HISTORY OF GROWTH AND EVOLUTION en V #1 loaf, organic, and gluten-free bread brands in the U.S. Vas operating bakeries V 2nd-largest baked foods company in U.S. ——+| iF ug 1 = sr Y Proven business model V Efficient bakeries & distribution v Experienced team One family-owned bakery Listed p
Slide 6: Business Overview
BUSINESS OVERVIEW Diverse product line across the baked foods spectrum 2024 SALES MARKET SHARE! = FLOWERS BRANDED =BBU = PEPPERIDGE FARM = PRIVATE LABEL = OTHER BRANDS Majority of business composed of faster-growing, higher-margin branded retail products SALES MIX = Branded Retail = Other tabase. Ce
Slide 7: Large and Stable U.S. Fresh Bakery Market
LARGE AND STABLE U.S. FRESH BAKERY MARKET ESTIMATED $55.6B' U.S. MARKET FOR US FRESH BAKERY RETAIL SALES FRESH AND FROZEN BAKERY ATRETAIL —_(inbilions) Large and stable U.S. Fresh Bakery category with sales of $31.9B+2 $32 $32 $30 Present in 98% of households with a frequency $26 $27 of purchase eve
Slide 8: Strategic Priorities
STRATEGIC PRIORITIES Aligned to long-term targets and disciplined capital policies LONG-TERM GROWTH +1-2% +4 - 6% TARGETS!2 NET SALES? Adj. EBITDA4 Develop Team Focus on Brands Invest in team to drive portfolio Pursue targeted innovation and optimization through brand growth, marketing to enhance re
Slide 9: Enhanced Talent and Organizational Structure
ENHANCED TALENT AND ORGANIZATIONAL STRUCTURE Investing in capabilities and enabling success PRIORITIZING BRAND + Supplemented experienced Flowers team with dynamic BUILDING AND external talent to enable additional capabilities in sales, FURTHERING STRATEGIC : INITIATIVES brand development, supply ch
Slide 10: 2023 Executive Total Compensation Mix
2023 Executive Total Compensation Mix1 Chief Executive Officer 15% Base Salary % of Total Target Annual Cash Incentive Awards 18% % of Total − Target Long-Term Incentive 67% Compensation % of Total At Risk − Other Named Executives (Average) 30% Base Salary % of Total Target Annual Cash Incentive Awa
Slide 11: Away-From-Home
Away-From-Home • • • • • • • • • • • • •
Slide 12: Branded Retail vs Other Sales CAGR
CAGR 5.6% $ 3.3 B $ 2.5 B CAGR 2.3% $ 1.8 B $ 1.6 B Branded Retail Sales Other Sales
Slide 13: (1) Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database
(1) Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database December 29, 2024 (2) 2019-2024
Slide 14: Source: Flowers Custom Database – Circana Total US Multi Outlet+ w Conv, TTM ended
• • • Source: Flowers Custom Database – Circana Total US Multi Outlet+ w Conv, TTM ended December 29, 2024
Slide 15: (1) Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database
− − − (1) Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database December 29, 2024
Slide 16: (1) Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database
− − − (1) Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database Calendar Year Ending December 29, 2024 (2) Flowers Custom Database – Circana Total US Mulo+ with Conv
Slide 17: Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database Calendar
− − − (1) Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database Calendar Year Ending December 29, 2024 (2) Flowers Custom Database – Circana Total US Mulo+ with Conv
Slide 18: Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database Calendar
− − − (1) Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database Calendar Year Ending December 29, 2024
Slide 19: For Over 100 Years...Now Made Sweeter!
FOR OVER 100 YEARS…NOW MADE SWEETER! − − − − (1) Circana Scan Data – Total US Multi Outlet+ w Conv Flowers Custom Database Calendar Year Ending December 29, 2024
Slide 20: Sample Innovation in Core Categories
SAMPLE INNOVATION IN CORE CATEGORIES Flowers had the #1 New SIU introduced inthe bread category in 2022 and 2023 — Nature’s Own Jawaiian Loaf’ in 2022 - Nature’s Own KETO Net One Loaf in 2023 eee, A) Nan peRFECTi, SOFT 169215. WHIT
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Slide 22: Earnings before interest, taxes, depreciation & amortization, adjusted for matters affecting comparability. See non-GAAP
• • • (1) Earnings before interest, taxes, depreciation & amortization, adjusted for matters affecting comparability. See non-GAAP reconciliations at the end of this slide presentation.
Slide 23: Margin and efficiency initiatives
• Backhaul utilization • Bakery of the future • Optimize strategic • Staffing optimization sourcing strategies • Cube optimization • Autonomous planning • Testing and • Leverage scale with implementing • Depot consolidation • SKU rationalization centralized buying maintenance and • Optimize number •
Slide 24: Acquired brands
Source: Flowers Custom Database – Circana Total US Multi Outlet+ w Conv 1. Acquired 2015 2. Acquired 2018
Slide 25: Net Sales by Category 2024E
• • • • Net Sales by Category2024E Snack Bars Baking Mixes Cookies Crackers (1) SPINS, Circana, Nielsens; Total US – Natural Expanded, MULO, Whole Foods Market; Natural Crackers; L52W ending 08/11/2024 (sum of channels) (2) SPINS, Circana, Nielsens; Total US – Natural Expanded, MULO, Whole Foods Mar
Slide 26: Any reference to sales refers to net sales inclusive of allowances and deductions against
(1) Any reference to sales refers to net sales inclusive of allowances and deductions against gross sales. (2) Earnings before interest, taxes, depreciation & amortization, adjusted for matters affecting comparability. (3) Earnings before interest, taxes, depreciation & amortization, adjusted for ma
Slide 27: ACV: all commodity volume AIC: average items carried
(1) ACV: all commodity volume (2) AIC: average items carried
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Slide 29: Calculated as (current year period units X change in price per unit) / prior
• • • • • • • (1) Calculated as (current year period units X change in price per unit) / prior year period net sales $ (2) Calculated as (prior year period price per unit X change in units) / prior year period net sales $ (3) Earnings before interest, taxes, depreciation & amortization (EBITDA), adj
Slide 30: Fiscal 2025 outlook
• • • • • • • • (1) Assumes full-year proforma contribution of $258-266M net sales, $39-42M adj. EBITDA, and $(0.09)-(0.05) adj. EPS (2) No reconciliation of the forecasted range for (i) adjusted EBITDA to net income or (ii) adjusted diluted EPS to diluted EPS for the 53-week Fiscal 2025 is included
Slide 31: Consistent Sales and Margin Profile
CONSISTENT SALES AND MARGIN PROFILE Stable performance in a variety of economic environments FY'06 mm Sales. ——Adj EBITDA margin* Recession nl Recession | | Fy'07 FY'08* FY'0O9 FYIO) FYI! FYI2) FYI3) FY14* FYI5 FYI6 FYI7 FYI8 FYI9 FY'20° * 53-week year ** Adjusted for items affecting comparability.
Slide 32: Free cash flow
• • $454 • $413 $367 $361 $345 $349 (1) Cash provided by operating activities minus Capital Expenditures. See non-GAAP reconciliations at the end of this slide presentation. (2) Free cash flow impacted by $23.0 million, $61.3 million, $27.8 million, and $6.0 million of ERP-related capital expenditur
Slide 33: FY'21 FY'22 FY'23
• $275 • • • $35 $46 $23 • $7 $1 $10 $187 $195 $203 $160 $167 $176 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24
Slide 34: 2020 was a 53-week year Earnings before interest, taxes, depreciation & amortization, adjusted for
(1) 2020 was a 53-week year (2) Earnings before interest, taxes, depreciation & amortization, adjusted for matters affecting comparability. See non-GAAP reconciliations at the end of this slide presentation. (3) Net debt excludes lease liabilities; net debt equals Total Debt, less cash and cash equi
Slide 35: Year-end figures. Debt excludes lease liabilities. Net Debt equals Total Debt, less cash and
• • • • • • • • (1) Year-end figures. Debt excludes lease liabilities. Net Debt equals Total Debt, less cash and cash equivalents. See reconciliation of non-GAAP measures at the end of this slide presentation.
Slide 36: Key Messages
Key Messages Right structure with an enhanced team committed to continued success Iconic brands driving growth Executing on portfolio strategy to enable margin expansion Allocating capital to optimize returns and grow shareholder value
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Slide 38: Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a
Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Slide 39: Source: Flowers internal data Volume data excludes impact of acquisitions during first year after
• • Source: Flowers internal data Volume data excludes impact of acquisitions during first year after acquisition date
Slide 40: 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 Source: Flowers Custom Database – Circana Total US Mulo+ with Co
Slide 41: Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a
Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Slide 42: Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a
Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Slide 43: Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a
Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Slide 44: Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a
Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Slide 45: Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a
Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
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Slide 47: 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 48: Adjusted net income per diluted share
For the 52-Week For the 52-Week Period Ended Period Ended December 28, 2024 December 30, 2023 Net income per diluted common share $ 1.17 $ 0.58 Business process improvement costs 0.02 0.08 Plant closure costs and impairment of assets 0.04 0.03 Restructuring charges 0.03 0.02 Restructuring-related im
Slide 49: EBITDA reconciliation FY2024
For the 52-Week For the 52-Week Period Ended Period 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 16,032 Depreciation and amortization 159,210 151,709 EBITDA 507,775 324,848 Other pension benefit (273) (269) Bus
Slide 50: Adjusted net income reconciliation
For the 52-Week For the 52-Week Period Ended Period Ended December 28, 2024 December 30, 2023 Net income $ 248,116 $ 123,416 Business process improvement costs (recoveries) 3,397 16,141 Plant closure costs and impairment of assets 7,732 5,473 Restructuring charges 5,552 5,324 Restructuring-related i
Slide 51: EBITDA reconciliation FY2016-2023
For the Fiscal Year For the Fiscal Year 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 Ended Ended December 30, 2023 December 31, 2022 January 1, 2022 January 2, 2021 December 28, 2019 Decemb
Slide 52: EBITDA reconciliation FY2011-2015
For the Fiscal For the Fiscal Year For the Fiscal Year For the Fiscal Year For the Fiscal Year Year Ended Ended Ended Ended Ended January 2, 2016 January 3, 2015 December 28, 2013 December 29, 2012 December 31, 2011 Net Income $ 189,191 $ 175,739 $ 230,894 $ 136,121 $ 123,428 Income tax expense 103,
Slide 53: EBITDA reconciliation FY2006-2010
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 January 1, 2011 January 2, 2010 January 3, 2009 December 29, 2007 December 30, 2006 Net Income attributable to Flowers Foods, Inc. $ 137,047 $ 130,297 $ 119,233 $ 94,615
Slide 54: Sales and adjusted EBITDA margin history
Adj EBITDA Sales Adj EBITDA Margin FY'24 5,103,487 538,531 10.6% FY'23 5,090,830 501,738 9.9% FY'22 4,805,822 502,030 10.4% FY'21 4,330,767 490,861 11.3% FY'20 4,387,991 521,690 11.9% FY'19 4,123,974 422,726 10.3% FY'18 3,951,852 410,936 10.4% FY'17 3,920,733 443,250 11.3% FY'16 3,926,885 447,468 11
Slide 55: Net debt reconciliation FY2024
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 56: Net debt to adjusted EBITDA history
December 30, 2023 December 31, 2022 January 1, 2022 January 2, 2021 December 28, 2019 December 29, 2018 December 30, 2017 December 31, 2016 January 2, 2016 Total debt* $ 1,048,144 $ 891,842 $ 890,609 $ 960,103 $ 866,508 $ 979,594 $ 805,086 $ 927,730 $ 988,389 Less: Cash and cash equivalents 22,527 1
Slide 57: Free cash flow reconciliation
Cash Provided by Purchase of Plant, Operating Property and Time Period Activities Equipment Free Cash Flow FY'24 412,664 132,088 280,576 FY'23 349,353 129,078 220,275 FY'22 360,889 169,071 191,818 FY'21 344,610 135,964 208,646 FY'20 454,464 97,929 356,535 FY'19 366,952 103,685 263,267 * Operating ca
Slide 58: 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.
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