Flowers Foods reports rise in Q4 2012 profit

US-based bakery foods company Flowers Foods has reported that its net income for the fourth quarter of 2012 has increased to $38.6m, compared to $23m in the corresponding quarter last year.

Sales in the fourth quarter of 2012 were up 14.7% to $749.4m, compared with $653.6m in the same quarter of fiscal 2011.

The company attributed the sales growth in the quarter to volume increases of 10.3%, which was partly offset by unfavourable net price/mix of 2.0%, as well as to contributions from acquisitions, such as Lepage Bakeries.

Flowers Foods acquired Lepage Bakeries in a cash-and-stock deal worth $370m in July 2012, in order to expand its footprint in New England and New York.

During the quarter, the company’s direct store delivery (DSD) sales increased by 13.9%, while the operating income of the segment was $59.2m, or 9.6% of sales.

Warehouse segment sales also increased by 18.5% in the fourth quarter of 2012, while its operating income stood at $12.8m, or 9.5% of sales.

Flowers Foods chairman and chief executive officer George E Deese said that the company’s fourth quarter results show the benefit to sales and earnings that resulted from its efforts to serve its customers.

"Our team continues to execute well on our operating strategies and we do anticipate that sales and earnings for 2013 will meet or exceed our long-term objectives for 5% to 10% sales growth and double-digit earnings per share growth, excluding one-time charges," Deese added.

For full-year 2012, Flower Foods posted a net income of $136.1m, an increase from net income of $123.4m for fiscal 2011.

The company’s sales for fiscal 2012 increased by 9.8% to $3.05bn, compared to sales of $2.77bn reported in fiscal 2011, driven by increased volume of 2.1% and positive net price/mix of 1.5%, and contributions from the latest acquisitions.

Headquartered in Georgia, Flowers Foods is a producer and marketer of packaged bakery foods for retail and foodservice customers in the US, operating 44 bakeries that produce a wide range of bakery products.

---

Image: Flowers Foods’ fourth quarter sales were up 14.7%, attributable to volume increases of 10.3%, which was partially offset by unfavourable net price/mix of 2%. Photo courtesy of PRNewsFoto / Flowers Foods, Inc.