Flowers Foods, Inc. (NYSE: FLO), headquartered in Thomasville, Georgia, is a leading producer of packaged bakery products in the United States, with notable brands such as Nature’s Own and Dave’s Killer Bread. The company reported financial results for its first quarter ended April 19, 2025.

In the first quarter, Flowers Foods showed a decline in key metrics. Net sales dropped 1.4% year-over-year to $1.554 billion, attributed to a combination of pricing/mix and volume declines, despite the addition of Simple Mills, which contributed $24.3 million in revenue. Net income fell 27.4% to $53.0 million, equating to 3.4% of total sales, a decrease of 120 basis points. This decline in profit stemmed from heightened selling, distribution, and administrative expenses (SD&A), which increased as a percentage of sales by 110 basis points to 40.8%, alongside rising interest expenses.

Adjusted net income decreased by 8.2% to $73.7 million, while adjusted diluted earnings per share (EPS) fell to $0.35, down $0.03 from the previous year. Adjusted EBITDA increased slightly by 1.6% to $162.0 million, representing 10.4% of net sales, marking a 30-basis point increase.

Guidance for the 53-week fiscal year 2025 has been revised downward. Expected net sales are now in the range of approximately $5.297 billion to $5.395 billion, compared to prior guidance of $5.403 billion to $5.487 billion. Adjusted EBITDA guidance has also been lowered, now projected at $534 million to $562 million, down from $560 million to $591 million previously. This adjustment reflects an expectation of modest growth excluding acquisitions.

The Simple Mills acquisition is anticipated to contribute $218 million to $225 million to net sales, which is slightly lower than prior estimates. The expected contribution to adjusted EBITDA from this acquisition is adjusted down to a range of $30 million to $33 million. Effective tax rates are approximately set at 25%, with capital expenditures estimated at $140 million to $150 million for the year.

Overall, the first quarter results indicate a challenging operational environment, amidst economic uncertainty and an evolving consumer landscape.