Flowers Foods, Inc. has released its financial results for Q2 2025, showcasing mixed performance and a revision of its annual guidance.
Mixed Results in Q2
In Q2 2025, Flowers Foods reported a 1.5% increase in net sales to $1.243 billion, primarily driven by the acquisition of Simple Mills. This acquisition contributed 5.1% to net sales growth, effectively offsetting declines in pricing and volume.
However, the company’s net income decreased by 12.8% to $58.4 million, representing 4.7% of sales, marking an 80-basis point decrease. This decline was largely due to increased costs related to workforce and interest expenses. Adjusted net income also fell by 16.0% to $63.4 million.
Guidance Revision for the Year
In light of the second quarter results, Flowers Foods has revised its guidance for the full fiscal year 2025. The company now anticipates net sales to range from $5.239 billion to $5.308 billion, reflecting a growth of 2.7% to 4.0% compared to the previous year. This is a downward revision from the prior guidance, which projected net sales between $5.297 billion and $5.395 billion.
Adjusted EBITDA is now projected to be between $512 million and $538 million, down from the previous guidance. For adjusted diluted EPS, the projection is now between $1.00 and $1.10.
Company's Future Strategy
Flowers Foods remains committed to disciplined cost-saving efforts and strategic investments in innovation and mergers and acquisitions to align its portfolio with consumer demand and drive long-term growth. The company acknowledges the competitive pressures it faces and expects these factors to continue influencing its performance throughout the year.
Despite the mixed Q2 results, Flowers Foods continues to adapt its strategies, focusing on growth and cost reduction to meet changing market demands.
