FLOWERS FOODS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS

THOMASVILLE, Ga., February 8, 2024 – Flowers Foods, Inc. (NYSE: FLO) today reported financial results for the company’s 52-week fiscal 2023 and 12-week fourth quarter ended December 30, 2023.

Fiscal 2023 Summary:
Compared to the prior year where applicable

• Sales increased 5.9% to a record $5.091 billion.
• Net income decreased 46.0% to $123.4 million, primarily due to increased legal settlement expense. Adjusted net income(1) decreased 5.4% to $256.3 million.
• Adjusted EBITDA(1) decreased 0.1% to $501.7 million, representing 9.9% of sales, a 50-basis point decrease.
• Diluted EPS decreased $0.49 to $0.58. Adjusted diluted EPS(1) decreased $0.07 to $1.20.

Fourth Quarter Summary:
Compared to the prior year fourth quarter where applicable

• Sales increased 4.3% to a fourth-quarter record, $1.129 billion.
• Net income decreased 26.6% to $35.7 million, primarily due to increased SD&A and depreciation and amortization expense. Adjusted net income(1) decreased 11.2% to $42.7 million.
• Adjusted EBITDA(1) increased 0.1% to $96.3 million, representing 8.5% of sales, a 40-basis point decrease.
• Diluted EPS decreased $0.06 to $0.17. Adjusted diluted EPS(1) decreased $0.03 to $0.20.

Chairman and CEO Remarks:

“Flowers’ fourth quarter and full year 2023 results underscore the strength of our leading brands, as we delivered record sales despite difficult market conditions,” said Ryals McMullian, chairman and CEO of Flowers Foods. “Volume trends improved throughout the year, and we gained dollar and unit share in the fourth quarter for the first time since early 2022, reflecting the hard work of our team and investments in innovation and marketing. Dave’s Killer Bread was a particular standout, achieving a record $1 billion in 2023 retail sales. Accelerated by our portfolio strategy, we also improved margins significantly in our cake, foodservice, and private label businesses.

“The 2024 outlook reflects confidence in our ability to successfully execute in a challenging category. Results are expected to benefit from moderating commodity costs, positive pricing actions, and savings initiatives. Our strong execution on promotions is driving improved returns, but the competitive environment remains rational, with promotional activity significantly below pre-pandemic levels. We remain committed to investing in innovation and marketing, as well as converting our distribution model in California. While these initiatives may present near-term headwinds, they are expected to ultimately enhance shareholder value. Above all, we are focused on enabling future growth in line with our long-term financial targets.”