Flowers Foods, Inc. (FLO) Bundle
A Brief History of H3
As of 2024, H3 has established itself as a significant player in its industry, showcasing a robust financial performance marked by steady growth and strategic acquisitions. The company reported net income of $204.994 million for the forty weeks ended October 5, 2024, compared to $87.740 million for the same period in the previous year, reflecting a substantial increase of 133.6%.
Financial Performance
For the forty weeks ended October 5, 2024, H3's total sales reached $3.992 billion, slightly up from $3.962 billion in the previous year, indicating a year-over-year growth of 0.8%. The breakdown of sales is as follows:
| Sales Category | 2024 (in thousands) | 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Total Sales | $3,992,362 | $3,961,803 | 0.8% |
| Branded Retail | $760,580 | $772,082 | (1.5%) |
| Other | $429,981 | $427,178 | 0.7% |
Expenses and Cost Management
H3 has effectively managed its expenses, with total production costs decreasing from 51.6% of sales in 2023 to 50.3% in 2024. Specifically, materials, supplies, labor, and other production costs amounted to $2.009 billion. The company has been able to reduce its selling, distribution, and administrative expenses to 39.0% of sales, down from 42.2%.
| Expense Category | 2024 Amount (in thousands) | 2023 Amount (in thousands) | Percentage of Sales 2024 | Percentage of Sales 2023 |
|---|---|---|---|---|
| Materials and Production Costs | $2,008,757 | $2,044,417 | 50.3% | 51.6% |
| Selling, Distribution, and Administrative Expenses | $1,557,010 | $1,671,813 | 39.0% | 42.2% |
Debt and Financing Activities
As of October 5, 2024, H3's long-term debt and right-of-use lease obligations totaled $1.370 billion, with total stockholders' equity standing at approximately $1.407 billion. The company has been diligent in managing its debt levels, with a notable reduction in net cash disbursed for financing activities from $176.98 million in 2024 compared to $41.36 million in 2023.
| Debt Category | Amount (in thousands) |
|---|---|
| 2031 Notes | $495,284 |
| 2026 Notes | $398,859 |
| Accounts Receivable Repurchase Facility | $160,000 |
| Right-of-Use Lease Obligations | $315,803 |
| Total Long-Term Debt | $1,369,946 |
Strategic Acquisitions
The acquisition of Papa Pita for a total consideration of $274.8 million in February 2023 has significantly contributed to H3's growth trajectory. This acquisition included identifiable intangible assets valued at $27.1 million, which have enhanced H3's market presence and operational capabilities.
| Fair Value of Consideration Transferred | Amount (in thousands) |
|---|---|
| Cash Consideration Paid | $270,258 |
| Working Capital Adjustments | $4,497 |
| Total Consideration | $274,755 |
Overall, H3's strategic initiatives, including effective cost management and prudent financing, have positioned the company for continued growth and stability in the competitive landscape of 2024.
A Who Owns Flowers Foods, Inc. (FLO)
Major Shareholders
As of 2024, Flowers Foods, Inc. (FLO) has a variety of institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Name | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | Institutional Investor |
| BlackRock, Inc. | 9.7% | Institutional Investor |
| State Street Corporation | 7.1% | Institutional Investor |
| Dimensional Fund Advisors LP | 5.0% | Institutional Investor |
| Wellington Management Group LLP | 4.8% | Institutional Investor |
| Company Executives and Directors | 3.2% | Insider Ownership |
| Other Institutional Investors | 20.0% | Institutional Investors |
| Public Float | 39.7% | Individual Investors |
Stock Performance and Market Capitalization
As of October 5, 2024, the market capitalization of Flowers Foods, Inc. is approximately $3.4 billion. The stock had a closing price of $15.25, reflecting a year-to-date increase of approximately 12%.
Dividends and Financial Performance
Flowers Foods has a consistent history of dividend payments. In 2024, the company declared the following dividends:
| Declaration Date | Record Date | Payment Date | Dividend per Share | Total Dividends Paid (in millions) |
|---|---|---|---|---|
| February 16, 2024 | March 1, 2024 | March 15, 2024 | $0.2300 | $48.6 |
| May 23, 2024 | June 6, 2024 | June 20, 2024 | $0.2400 | $50.7 |
| August 22, 2024 | September 6, 2024 | September 20, 2024 | $0.2400 | $50.5 |
Recent Financial Highlights
For the twelve weeks ended October 5, 2024, Flowers Foods reported the following:
- Net Income: $64.98 million
- Net Sales: $1.19 billion
- Operating Income: $90.18 million
- Cash Flow from Operations: $282.37 million
Stock Repurchase Activity
During the forty weeks ended October 5, 2024, Flowers Foods repurchased 992,233 shares of its common stock for approximately $22.7 million under a share repurchase plan.
Capital Structure
As of October 5, 2024, Flowers Foods' capital structure is outlined below:
| Type of Obligation | Amount (in thousands) | Rate Type | Maturity |
|---|---|---|---|
| 2031 Notes | $495,284 | Fixed Rate | 2031 |
| 2026 Notes | $398,859 | Fixed Rate | 2026 |
| Accounts Receivable Repurchase Facility | $160,000 | Variable Rate | 2026 |
| Long-term Debt and Lease Obligations | $1,305,273 | N/A | N/A |
| Total Stockholders' Equity | $1,406,526 | N/A | N/A |
Flowers Foods, Inc. continues to maintain a strong financial position with a focus on growth and shareholder returns through dividends and stock repurchases.
Flowers Foods, Inc. (FLO) Mission Statement
Flowers Foods, Inc. focuses on providing high-quality, fresh, and innovative bakery products that meet the evolving needs of consumers and customers. The company is committed to operational excellence, sustainability, and community engagement, reflecting its dedication to creating value for shareholders, customers, and employees.
Financial Performance Overview
As of the forty weeks ended October 5, 2024, Flowers Foods reported:
- Net sales: $3,992.4 million
- Net income: $205.0 million
- Income from operations: $286.9 million
- Net cash flows from operations: $282.4 million
- Dividends paid: $152.5 million
- Stock repurchased: $22.7 million
Stockholder Equity
As of October 5, 2024, the company’s stockholders' equity stood at:
| Item | Value (in thousands) |
|---|---|
| Common Stock | $199 |
| Capital in Excess of Par Value | $705,096 |
| Retained Earnings | $984,977 |
| Accumulated Other Comprehensive Income | $2,239 |
| Treasury Stock (Number of Shares) | 18,130,532 |
| Treasury Stock (Cost) | $285,985 |
| Total Stockholders’ Equity | $1,406,526 |
Sales Performance Breakdown
For the twelve weeks ended October 5, 2024, sales results were as follows:
- Net sales: $1,190.6 million
- Branded Retail Sales: Decreased by 1.5%
- Other Sales: Increased by 0.7%
Sales changes were attributed to:
| Category | Percentage Point Change |
|---|---|
| Branded Retail Pricing/Mix | (0.9) |
| Branded Retail Volume | (0.6) |
| Other Pricing/Mix | 4.9 |
| Other Volume | (4.2) |
| Total Percentage Change in Sales | (0.7) |
Cost Structure
For the forty weeks ended October 5, 2024, the cost structure was as follows:
| Cost Component | Percentage of Sales |
|---|---|
| Ingredients and Packaging | 29.5% |
| Workforce-Related Costs | 14.4% |
| Other Costs | 6.4% |
| Total Costs | 50.3% |
Cash Flow Analysis
For the forty weeks ended October 5, 2024, the cash flow details included:
- Operating Activities: $282.4 million
- Capital Expenditures: $86.6 million
- Increased Indebtedness: $5.0 million
Debt Obligations
As of October 5, 2024, the company’s long-term debt obligations included:
| Debt Component | Amount (in thousands) |
|---|---|
| 2031 Notes | $495,284 |
| 2026 Notes | $398,859 |
| Accounts Receivable Repurchase Facility | $160,000 |
| Right-of-Use Lease Obligations | $315,803 |
| Total Long-Term Debt | $1,305,273 |
These figures reflect Flowers Foods' operational focus and commitment to maintaining financial stability while pursuing growth opportunities in the bakery sector.
How Flowers Foods, Inc. (FLO) Works
Company Overview
Flowers Foods, Inc. (FLO) operates as a leading producer and marketer of packaged bakery foods in the United States. The company specializes in the production of bread, rolls, and snack cakes, and it markets its products under various brand names including Nature's Own, Dave's Killer Bread, and Wonder.
Financial Performance
For the twelve weeks ended October 5, 2024, Flowers Foods reported net sales of $1,190.6 million, a decrease of 0.7% compared to the same period in the prior year. For the forty weeks ended October 5, 2024, net sales were $3,992.4 million, reflecting a modest increase of 0.8% year-over-year.
| Financial Metric | Twelve Weeks Ended October 5, 2024 | Twelve Weeks Ended October 7, 2023 | Forty Weeks Ended October 5, 2024 | Forty Weeks Ended October 7, 2023 |
|---|---|---|---|---|
| Net Sales | $1,190.6 million | $1,199.3 million | $3,992.4 million | $3,961.8 million |
| Net Income | $65.0 million | ($46.7 million) | $205.0 million | $87.7 million |
| Income from Operations | $90.2 million | ($59.3 million) | $286.9 million | $123.0 million |
| Cash Flows from Operations | $282.4 million | $257.3 million | N/A | N/A |
Revenue Breakdown
Revenue is categorized into two main segments: Branded Retail and Other. For the twelve weeks ended October 5, 2024, Branded Retail sales were $760.6 million, accounting for 63.9% of total sales. The Other category generated $429.9 million, or 36.1% of total sales.
| Sales Category | Twelve Weeks Ended October 5, 2024 | Twelve Weeks Ended October 7, 2023 |
|---|---|---|
| Branded Retail | $760.6 million | $772.1 million |
| Other | $429.9 million | $427.2 million |
| Total Sales | $1,190.6 million | $1,199.3 million |
Cost Structure
For the forty weeks ended October 5, 2024, the cost of materials, supplies, labor, and other production costs totaled $2,008.8 million, representing 50.3% of sales. Selling, distribution, and administrative expenses were $1,557.0 million, accounting for 39.0% of sales.
| Cost Category | Forty Weeks Ended October 5, 2024 | Forty Weeks Ended October 7, 2023 |
|---|---|---|
| Materials, Supplies, Labor | $2,008.8 million | $2,044.4 million |
| Selling, Distribution, and Administrative Expenses | $1,557.0 million | $1,671.8 million |
| Income from Operations | $286.9 million | $123.0 million |
Capital Expenditures and Investments
During the forty weeks ended October 5, 2024, Flowers Foods invested $86.6 million in capital expenditures. The company anticipates capital expenditures of $130.0 million to $140.0 million for Fiscal 2024, which includes expenditures for upgrading its ERP system.
Debt and Capital Structure
As of October 5, 2024, Flowers Foods had total long-term debt and right-of-use lease obligations of $1,369.9 million. The breakdown includes:
| Debt Category | Amount (in thousands) |
|---|---|
| 2031 Notes | $495,284 |
| 2026 Notes | $398,859 |
| Accounts Receivable Repurchase Facility | $160,000 |
| Right-of-Use Lease Obligations | $315,803 |
| Total Long-Term Debt | $1,305,273 |
Dividends and Share Repurchases
Flowers Foods paid dividends totaling $152.5 million during the forty weeks ended October 5, 2024. The company repurchased 992,233 shares for $22.7 million during the same period.
| Dividend Data | Amount (in thousands) |
|---|---|
| Dividends Paid | $152,489 |
| Stock Repurchases | $22,703 |
How Flowers Foods, Inc. (FLO) Makes Money
Revenue Streams
Flowers Foods operates primarily through two revenue streams: Branded Retail and Other sales.
| Revenue Category | Fiscal Year 2024 Q3 Sales (in thousands) | Fiscal Year 2023 Q3 Sales (in thousands) | Percentage Change |
|---|---|---|---|
| Branded Retail | $760,580 | $772,082 | (1.5%) |
| Other | $429,981 | $427,178 | 0.7% |
| Total | $1,190,561 | $1,199,260 | (0.7%) |
Branded Retail Sales
Branded Retail sales accounted for approximately 63.9% of total sales in Q3 of Fiscal 2024. This segment includes well-known brands such as Nature's Own and DKB. Despite a slight decline of 1.5% year-over-year, Flowers Foods continues to focus on higher-margin products, particularly organic and Keto options.
Other Sales
The Other category, which includes store branded retail and foodservice sales, contributed 36.1% of total sales. This segment saw a modest increase of 0.7% compared to the previous year, primarily driven by improvements in foodservice optimization.
Cost Structure
For the forty weeks ended October 5, 2024, Flowers Foods reported the following costs:
| Cost Category | Amount (in thousands) | Percentage of Sales |
|---|---|---|
| Materials, Supplies, Labor | $2,008,757 | 50.3% |
| Selling, Distribution, and Administrative | $1,557,010 | 39.0% |
| Depreciation and Amortization | $122,393 | 3.1% |
| Income from Operations | $286,939 | 7.2% |
Profitability Metrics
For the twelve weeks ended October 5, 2024, net income was reported at $64.98 million, a significant turnaround from a net loss of $46.73 million in the same quarter the previous year. The improvement was attributed to better operational efficiencies and reduced costs.
Cash Flow and Investments
During the forty weeks ended October 5, 2024, Flowers Foods generated net cash flows from operations of $282.37 million and invested $86.62 million in capital expenditures. The company also paid $152.49 million in dividends to shareholders.
Stock Performance and Dividends
Flowers Foods has a consistent dividend policy, paying $0.2400 per common share in Q3 of 2024. The total dividends paid amounted to $50.54 million during the quarter.
Debt and Financial Structure
As of October 5, 2024, Flowers Foods reported long-term debt obligations of approximately $1.37 billion, with total stockholders' equity at $1.41 billion.
| Debt Category | Amount (in thousands) |
|---|---|
| 2031 Notes | $495,284 |
| 2026 Notes | $398,859 |
| Accounts Receivable Repurchase Facility | $160,000 |
| Right-of-Use Lease Obligations | $315,803 |
| Total Long-Term Debt | $1,369,946 |
Outlook
Flowers Foods anticipates that its Fiscal 2024 sales will be flat to higher than those in Fiscal 2023, benefiting from price increases implemented previously and new business developments. However, this could be tempered by changing consumer buying patterns and promotional activities.
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Resources:
- Flowers Foods, Inc. (FLO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Flowers Foods, Inc. (FLO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Flowers Foods, Inc. (FLO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.