Flowers Foods Reports Higher Q1 Sales As Earnings Decline

Flowers Foods reported a 1.1% increase in net sales for its 16-week first quarter ended April 25, 2026, as the contribution from Simple Mills and improved pricing/mix offset lower volumes.

The US packaged bakery foods company, listed on the New York Stock Exchange under the ticker FLO, said net sales rose to USD1.572bn. Net income declined 20.6% to USD42.1m, representing 2.7% of sales, while adjusted net income fell 17.4% to USD60.9m. Adjusted EBITDA decreased 1.8% to USD159.0m, equal to 10.1% of net sales. Diluted earnings per share decreased by USD0.05 to USD0.20, while adjusted diluted EPS fell by USD0.06 to USD0.29.

The company said pricing/mix increased 2.1%, while volume declined 3.3%. The Simple Mills acquisition, which cycled on February 21, 2026, contributed 2.3% to net sales.

“Flowers’ first quarter reflects our team’s disciplined cost management, helping us deliver financial performance in-line with expectations despite softer top-line results driven by ongoing challenging macroeconomic conditions impacting the category,” said Ryals McMullian, chairman and CEO of Flowers Foods.

Branded Retail net sales increased 3.4% to USD1.045bn, supported by pricing/mix and the Simple Mills contribution, partly offset by volume declines. Other net sales fell 3.1% to USD526.2m, which Flowers attributed to inflationary pressure on consumer spending and margin optimisation actions.

The company also declared a quarterly dividend of USD0.1250 per share, payable on June 26, 2026, to shareholders of record on June 12, 2026. Flowers said this represents its 95th consecutive quarterly dividend.

Flowers reaffirmed its fiscal 2026 outlook. For the 52-week year, the company expects net sales of approximately USD5.163bn to USD5.267bn, representing a change of -1.8% to 0.2% compared with the prior year. Adjusted EBITDA is expected to be approximately USD465m to USD495m, while adjusted diluted EPS is forecast at approximately USD0.80 to USD0.90.

“The comprehensive review of our brand portfolio, supply chain, and financial strategy announced last quarter is well underway and helping to further clarify how we allocate resources to strengthen our position and support the growth of our strongest brands,” McMullian said.

He added that resetting the quarterly dividend to USD0.125 per share, or USD0.50 per share annualised, would allow Flowers to prioritise debt reduction while continuing to invest in brands, innovation and capabilities.