Flowers Foods, Inc. is a leading producer and marketer of packaged bakery food products in the United States. The company's principal products include fresh breads, buns, rolls, snack cakes, and tortillas, as well as frozen breads and rolls under various brand names. Flowers Foods, Inc. operates 46 plants in 19 states and distributes its products through various channels including direct-store-delivery, warehouse delivery, and bakeries. The company's Fiscal 2023 sales were $5.1 billion, and it continues to face challenges such as the inflationary economic environment, supply chain disruptions, and labor shortages.
In Fiscal 2023, Flowers Foods, Inc. reported a 5.9% increase in sales compared to Fiscal 2022, driven by a 10.1% contribution from price/mix and a 1.1% contribution from the Papa Pita acquisition, partially offset by a 5.3% decline in volume. The company's income from operations for Fiscal 2023 was $172.9 million, a decrease from $303.2 million in Fiscal 2022, primarily due to an increase in legal settlements and related costs of $130.0 million, input cost inflation, decreases in production volumes, increased marketing investments, and higher maintenance costs.
Flowers Foods, Inc. also incurred various expense items affecting comparability in Fiscal 2023, including business process improvement costs, restructuring charges, plant closure costs and impairment of assets, gain on sale, severance costs, and lease termination, FASTER Act costs, acquisition-related costs, and legal settlements and related costs. These expenses provide additional context for understanding the company's financial performance and operational changes.
Overall, Flowers Foods, Inc. continues to navigate the challenges of the inflationary economic environment and other macroeconomic factors while focusing on optimizing its sales mix and implementing strategic initiatives to address cost pressures and maintain its competitive position in the fresh bakery market. As a result of these announcements, the company's shares have moved 0.5% on the market, and are now trading at a price of $22.86. For more information, read the company's full 10-K submission here.
