Flowers Foods, Inc. · NYSE:FLO
Flowers Foods — Q1 2025 Earnings Presentation
29 slides from Flowers Foods's earnings presentation, May 16, 2025
Slide 1: First Quarter 2025 Review
ALL / y — “<Flowers FOODS FIRST QUARTER 2025 REVIEW May 16, 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 * Challenging consumer environment led to greater than expected category declines * Strong market share performance with each of our leading brands gaining or holding unit and dollar share in tracked channels * Investing in innovation and targeting significant opportunities in faster-gr
Slide 4: Q1 2025 Financial Review
Q1 2025 FINANCIAL REVIEW NET SALES CASH FLOWS — 1Q’25 449 Cash from Ops Dividends $1.554B -1.4%v py S135.6M $52.3M + Price/Mix -0.3%! + Volume -2.7%2 Capex Acquisition® + Acquisition +1.6% $25.6M $791.9M NET INCOME GAAP DILUTED EPS S53.0M -27.4% v PY SO.25 -$0.09 v PY ADJ. EBITDA? ADJ. DILUTED EPS4
Slide 5: Net Sales Chart
1,700 1,650 1,600 1,550 1,500 1,450 1,400 1,350 1,300
Slide 6: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS Net income decreased 27.4% to $53.0 million, primarily due to lower operating income, higher net interest expense, and higher income tax rate Adjusted EBITDA increased primarily due to improved gross margin? and lower adjusted SD&A2, partly offset by decreased net sales ADJUSTED E
Slide 7: Fiscal 2025 Guidance
FISCAL 2025 GUIDANCE (Provided May 16, 2025) FLOWERS SIMPLE MILLS FLOWERS STANDALONE (PARTIAL YEAR) TOTAL Net Sales $5.079 t $5.170B $218+ $225M $5.297 + $ 5.395B Adj. EBITDA! $5041 $529M $30 $33M $534. $562M 537 week expected to j. di contribute $70-80M net sales, Adj. dil. EPS $1.13 to $1.22 ($0.0
Slide 8: Guidance Drivers
GUIDANCE DRIVERS $1.28 FY'24 Adj EBITDA + Carryover of new business wins, and pricing and efficiency actions KEY + Innovation CONSIDERATIONS + 534 week - Category declines = Tariffs - Promotional activity - Strategic investments D&A - Higher capital employed from acquisition and ERP Net Int Exp Inc
Slide 9: Long-Term Growth Target Scorecard
LONG-TERM GROWTH TARGET SCORECARD Net Sales 1-2% 6.4% 2.5% 5.2% 5.4% 4.4% 3.7% Adj EBITDA 4-6% 23.4% 7.8% 5.9% 4.4% 5.0% 3.4%3 Adj dil. EPS 7-9% 36.5% 13.7% 9.8% 5.7% 5.9% 3.4% ()_ Off FY'19 base; FY'20 and FY'25 are 53-week years (2) Implied return using FY’25 guidance midpoint for standalone Flowe
Slide 10: Private Label Unit Share
PRIVATE LABEL UNIT SHARE CHANGE IN PRIVATE LABEL UNIT SHARE (Y/Y) 0.9 0.9 0.7 - 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 data -0.3
Slide 11: Volume Trends
VOLUME TRENDS + Branded retail impacted primarily by softness in traditional loaf and cake + Other pressured by away-from-home weakness and private label cake FLO Volume % Change (Y/Y) TOTAL COMPANY BRANDED RETAIL OTHER 10'24 20'24 30'24 40'24 10'25 10'24 20'24 30'24 40'24 10'25 1Q'24 -2Q'24_3Q'24 4
Slide 12: Branded Dollar Share
Branded Dollar Share Store Branded Dollar Share 78.00 27.00 25.7 77.3 25.5 76.9 25.2 77.00 76.4 24.6 25.00 76.00 23.6 23.1 75.3 22.6 23.00 75.00 74.7 74.5 74.2 74.00 21.00 73.00 19.00 72.00 17.00 71.00 70.00 15.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 L52 WE 04-20-25
Slide 13: Flowers Market Share
FLOWERS MARKET SHARE =FLO Bread Dollar Share = = FLO Cake Dollar Share 165 16.7 16.9 16.8 16.8 16.0 15.9 | 6.1 59 | 59 59 59 58 | 54 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 16.7 5.9 Source: Flowers Custom Database - Circana Total US Mulo+ ony 13 Z# Due to a change in method s
Slide 14: Flowers Fresh Packaged Breads
FLOWERS FRESH PACKAGED BREADS mDollar Sales % Chg == Unit Sales % Chg 75% 4.3% 3.3% 2.9% 1.9% 14% 02% | -_ = ee oe 13% “1.6% 9 15% lL 2.0% “1.8% 23% i -2.5% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Source: Flowers Custom Database - Circana Total US Mulo+ with Conv 14 Due to a
Slide 15: Flowers Commercial Cake
FLOWERS COMMERCIAL CAKE mDollar Sales % Chg == Unit Sales % Chg 1.9% 16% -1.7% 3.4% 33% 76% 4.4% -4.6% “ 5.1% oA -6.1% -75% 16% 7.2% 16% -10.0% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Source: Flowers Custom Database - Circana Total US Mulo+ with Conv 15 Due to a change in met
Slide 16: Organic Category Sales
ORGANIC CATEGORY SALES mms FLOWERS ORGANICS FLOWERS SHARE OF ORGANICS mmm ORGANIC FRESH PACKAGED BREADS xFLO 72.9 74.3 744 74.1 714 68.7 g CORRE $963.9 $965.0 2 ents $848.3 5 $703.2 d $321.1 $311.5 $316.0 $320.9 $336.3 $337.6 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 L52 WE 04-20-25 16 Source: Flowers
Slide 17: Gluten-Free Category Sales
GLUTEN-FREE CATEGORY SALES wm GLUTEN FREE FPB xFLO mmm FLOWERS GF ——FLOWERS SHARE OF GF 35.7 37.8 38.3 35.6 32.0 28.0 $144.0 $115.1 $245.0 FY 2020 FY 2021 FY 2022 Total US Mulo+ with Conv s, data provided previously by C Source: Flowers Custom Database - Cir Due to a change in methodology and sour ‘
Slide 18: 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 19: Adjusted Net Income per Diluted Common Share
For the 16-Week For the 16-Week Period Ended Period Ended April 19, 2025 April 20, 2024 Net income per diluted common share $ 0.25 $ 0.34 Business process improvement costs NM 0.01 Plant closure costs and impairment of assets 0.03 0.01 Restructuring charges NM NM Restructuring-related implementation
Slide 20: Gross Margin Reconciliation
For the 16-Week For the 16-Week Period Ended Period Ended April 19, 2025 April 20, 2024 Net sales $ 1,554,230 $ 1,576,818 Materials, supplies, labor and other production costs (exclusive of depreciation and amortization) 778,346 797,186 Gross margin excluding depreciation and amortization 775,884 77
Slide 21: Adjusted SD&A
For the 16-Week For the 16-Week Period Ended Period Ended April 19, 2025 April 20, 2024 Selling, distribution, and administrative expenses $ 633,513 $ 625,251 Business process improvement costs (891) (3,683) Restructuring-related implementation costs (4,288) (1,344) Acquisition-related costs (13,764
Slide 22: Adjusted EBITDA Reconciliation
For the 16-Week For the 16-Week Period Ended Period Ended April 19, 2025 April 20, 2024 Net income $ 52,998 $ 73,043 Income tax expense 18,204 23,052 Interest expense, net 14,048 5,611 Depreciation and amortization 49,268 48,235 EBITDA 134,518 149,941 Other pension benefit (117) (158) Business proce
Slide 23: Adjusted Income Tax Expense
For the 16-Week For the 16-Week Period Ended Period Ended April 19, 2025 April 20, 2024 Income tax expense $ 18,204 $ 23,052 Tax impact of: Business process improvement costs 223 921 Plant closure costs and impairment of assets 1,850 1,000 Restructuring charges 144 150 Restructuring-related implemen
Slide 24: Adjusted Net Income
For the 16-Week For the 16-Week Period Ended Period Ended April 19, 2025 April 20, 2024 Net income $ 52,998 $ 73,043 Business process improvement costs 668 2,762 Plant closure costs and impairment of assets 5,547 3,000 Restructuring charges 429 448 Restructuring-related implementation costs 3,216 1,
Slide 25: Trailing 52 Week Adjusted EBITDA
For the 12 Weeks For the 12 Weeks For the 12 Weeks For the 16 Weeks Trailing 52 Week Ended Ended Ended Ended Period End July 13, 2024 October 5, 2024 December 28, 2024 April 19, 2025 April 19, 2025 Net Income $ 66,967 $ 64,984 $ 43,122 $ 52,998 $ 228,071 Income tax expense 23,455 20,536 13,783 18,20
Slide 26: Net Debt
As of April 19, 2025 Current maturities of long-term debt $ - Long-term debt 1,790,379 Total debt 1,790,379 Less: Cash and cash equivalents 7,340 Net Debt $ 1,783,039 Adjusted EBITDA for the Trailing Twelve Months Ended April 19, 2025 $ 541,134 Ratio of Net Debt to Trailing Twelve Month Adjusted EBI
Slide 27: Historical Annual 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 33,6
Slide 28: Per Share 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.
Slide 29: Adjusted Net Income per Diluted Common Share
Net income per diluted common share $ 0.95 to $ 1.05 Business process improvement costs NM NM Plant closure costs and impairment of assets 0.03 0.03 Restructuring charges NM NM Restructuring-related implementation costs 0.02 0.02 Acquisition-related costs 0.05 0.05 Legal settlements and related cost