Flowers Foods, Inc. (FLO) has reported 1.78 percent rise in profit for the quarter ended Apr. 22, 2017. The company has earned $60.42 million, or $0.29 a share in the quarter, compared with $59.36 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $52.64 million, or $0.25 a share compared with $59.36 million or $0.28 a share, a year ago. Revenue during the quarter went down marginally by 1.39 percent to $1,187.65 million from $1,204.35 million in the previous year period. Gross margin for the quarter expanded 39 basis points over the previous year period to 48.81 percent. Total expenses were 91.57 percent of quarterly revenues, down from 92.10 percent for the same period last year. This has led to an improvement of 53 basis points in operating margin to 8.43 percent.
Operating income for the quarter was $100.12 million, compared with $95.16 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $132.82 million compared with $138.62 million in the prior year period. At the same time, adjusted EBITDA margin contracted 33 basis points in the quarter to 11.18 percent from 11.51 percent in the last year period.
"Our competitive position remains solid as we navigate a difficult marketplace," said Allen Shiver, Flowers Foods president and chief executive officer. "During the first quarter, with Daves Killer Bread, Nature's Own, and Wonder, we gained share in our key segments of the bread category. We also delivered lower production costs as a percentage of sales, the result of investments in capacity and improved manufacturing efficiencies. In early May, we launched four organic breakfast items to expand offerings under the DKB brand."
Flowers Foods, Inc. forecasts revenue to be in the range of $3,927 million to $4,006 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.87 to $0.96. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.85 to $0.95 on adjusted basis.
Operating cash flow drops significantlyFlowers Foods, Inc. has generated cash of $75.99 million from operating activities during the quarter, down 36 percent or $ 42.75 million, when compared with the last year period. Cash flow from investing activities was $28.36 million for the quarter as against cash outgo of $19.94 million in the last year period.
The company has spent $104.25 million cash to carry out financing activities during the quarter as against cash outgo of $101.71 million in the last year period.
Cash and cash equivalents stood at $6.51 million as on Apr. 22, 2017, down 43.21 percent or $4.96 million from $11.47 million on Apr. 23, 2016.
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