Flowers Foods Reports Positive Q2 Results for FY2023
August 23, 2023
☀️Earnings Overview
For the second quarter of FY2023, FLOWERS FOODS ($NYSE:FLO) reported total revenue of USD 1228.0 million, a 14.5% decrease from the same quarter in the previous fiscal year. Net income was reported as USD 63.8 million, a 25.5% decrease year on year.
Share Price
On Friday, FLOWERS FOODS reported positive Q2 results for FY2023, sending its stock up by 4.2%. The company’s stock opened at $25.5 and closed at $25.8, up from its previous closing price of $24.8. The positive stock performance was driven by a strong quarterly report that showed continued growth for the company despite the ongoing economic turbulence.
These strong results were lauded by investors, who drove FLOWERS FOODS stock up 4.2% on Friday. This is a sign that investors are expecting the company to continue its positive trajectory in the coming quarters, bolstered by its healthy financial performance and continued commitment to its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Flowers Foods. More…
| Total Revenues | Net Income | Net Margin |
| 5k | 223.59 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Flowers Foods. More…
| Operations | Investing | Financing |
| 305.96 | -396.35 | -52.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Flowers Foods. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.51k | 2.04k | 6.83 |
Key Ratios Snapshot
Some of the financial key ratios for Flowers Foods are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.5% | 3.4% | 6.5% |
| FCF Margin | ROE | ROA |
| 3.3% | 14.1% | 5.8% |
Analysis
As a GoodWhale analyst, I had the opportunity to analyze FLOWERS FOODS‘ financials. According to our Star Chart, FLOWERS FOODS has a high health score of 8/10 that reflects its strong cashflows and debt position, which is indicative of its capability to sustain future operations in times of crisis. In terms of categories, FLOWERS FOODS is particularly strong in dividend, profitability, and medium in asset and growth. We classify FLOWERS FOODS as a ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth. With this in mind, FLOWERS FOODS may be an attractive investment option for investors looking for steady, consistent returns. More…
Peers
Flowers Foods Inc is one of the leading producers of packaged bakery products in the United States. The company’s principal competitors are J&J Snack Foods Corp, MamaMancini’s Holdings Inc, and Bridgford Foods Corp.
– J&J Snack Foods Corp ($NASDAQ:JJSF)
J&J Snack Foods Corp is a publicly traded company with a market capitalization of $2.66 billion as of March 2022. The company manufactures and markets snack foods and beverages. Its products include ice cream, frozen desserts, cookies, crackers, pretzels, and other snacks. J&J Snack Foods Corp has a return on equity of 5.74%.
J&J Snack Foods Corp was founded in 1971 and is headquartered in Pennsauken, New Jersey. The company operates through three segments: Food Service, Retail, and International. The Food Service segment provides products to foodservice customers, including restaurants, schools, and other institutions. The Retail segment sells products to retail grocery and mass merchandiser customers. The International segment consists of sales to customers located outside of the United States.
– MamaMancini’s Holdings Inc ($NASDAQ:MMMB)
MamaMancini’s Holdings Inc is a food company that specializes in the production of Italian-style foods, such as meatballs, sausages, and pasta sauce. The company has a market cap of $39.22 million and a return on equity of -14.63%. MamaMancini’s Holdings Inc is a publicly traded company on the Nasdaq Stock Market under the ticker symbol “MMMB.”
– Bridgford Foods Corp ($NASDAQ:BRID)
Bridgford Foods Corporation is a food company that specializes in the manufacture and sale of frozen and refrigerated food products. The company has a market capitalization of 115.55 million as of 2022 and a return on equity of 46.05%. Bridgford Foods Corporation’s products include breads, rolls, biscuits, snacks, and other frozen and refrigerated foods. The company operates in the United States and Canada.
Summary
FLOWERS FOODS reported its second quarter of FY2023 earnings on June 30, 2023, showing a 14.5% decrease in total revenue and 25.5% decrease in net income year over year. Despite this, the stock price moved up the same day, suggesting that investors are confident in the company’s prospects going forward. The decreased revenue and net income indicate that there may be some challenges ahead for FLOWERS FOODS, but investors appear to be taking a longer-term view of the company’s potential. Analysts will need to carefully monitor its financial performance going forward to understand whether the stock price increase was warranted.
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