Flowers Foods Sinks on Q2 Earnings

Flowers Foods, Inc. (NYSE: FLO) today reported financial results for the company's 12-week second quarter ended July 12, 2025.Net sales increased 1.5% to $1.243 billion as the Simple Mills acquisition benefit more than offset pricing/mix and volume declines.Net income decreased 12.8% to $58.4 million, representing 4.7% of sales, an 80-basis point decrease, primarily due to greater outside purchases, increased workforce-related costs, and higher interest expense. Adjusted net income decreased 16.0% to $63.4 million.Adjusted EBITDA decreased 4.0% to $137.7 million, representing 11.1% of net sales, a 60-basis point decrease.Diluted EPS decreased $0.04 to $0.28. Adjusted diluted EPS decreased $0.06 to $0.30.Simple Mills contributed $61.4 million in net sales, net loss of $2.1 million, $10.9 million to adjusted EBITDA, and ($0.01) diluted EPS.Said CEO Ryals McMullian, "Macroeconomic uncertainty and shifting consumer demand have continued to pressure the bread category, but our portfolio strategy has shown promise in offsetting those headwinds.” "We are proactively investing in innovation and M&A to transform our portfolio and align it with consumer demand for better-for-you and value-oriented products. These differentiated products enable us to target attractive opportunities in our existing categories, while expanding into adjacencies and new categories with exciting growth prospects.”FLO shares gave back 56 cents, or 3.4%, Friday to $16.02.