Flowers Foods, Inc. reported its financial results for the twelve and forty weeks ended October 5, 2024, showing significant improvements in profitability compared to the previous fiscal period. For the twelve weeks, net sales decreased slightly to $1,190.6 million, down 0.7% from $1,199.3 million in the same period last year. This decline was attributed to a 2.4% drop in volume, partially offset by a 1.7% positive price/mix. In contrast, for the forty weeks, net sales increased by 0.8% to $3,992.4 million, driven by a 2.0% contribution from price/mix and a 0.2% contribution from the acquisition of Papa Pita, despite a 1.4% decline in volume.

The company experienced a substantial turnaround in profitability, with income from operations for the twelve weeks reaching $90.2 million, compared to a loss of $59.3 million in the prior year. For the forty weeks, income from operations rose to $286.9 million, up from $123.0 million. Net income for the twelve weeks was $65.0 million, a significant recovery from a net loss of $46.7 million in the same quarter last year. For the forty weeks, net income increased to $205.0 million from $87.7 million.

Selling, distribution, and administrative expenses decreased significantly, contributing to the improved operating income. For the twelve weeks, these expenses were $460.4 million, down from $604.0 million, while for the forty weeks, they fell to $1,557.0 million from $1,671.8 million. The effective tax rate for the twelve weeks was 24.0%, down from 26.2% in the prior year, while for the forty weeks, it increased to 24.6% from 21.0%.

Strategically, Flowers Foods announced the closure of its Baton Rouge bakery, which ceased production on September 19, 2024, incurring severance costs of $1.1 million and additional asset impairment charges of $2.4 million. The company also recognized impairment losses related to its investment in Base Culture, totaling $9.5 million over the past two fiscal periods.

The acquisition of Papa Pita, completed on February 17, 2023, for $274.8 million, has enhanced the company's product offerings and geographic reach. The company continues to focus on cost-saving initiatives, projecting savings of $40 million to $50 million for Fiscal 2024, while also investing in digital strategies and an ERP upgrade expected to cost between $350 million and $400 million by completion in Fiscal 2026.

As of October 5, 2024, Flowers Foods reported total assets of $3.43 billion and total stockholders' equity of $1.41 billion, reflecting a solid financial position to support its strategic initiatives.