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Flowers Foods Inc
Flowers Foods, Inc. is a publicly traded company listed on the New York Stock Exchange (NYSE) under the ticker symbol "FLO." The company is a leading producer and marketer of baked foods in the United States. Here are some key points about the company's financials, earnings, growth, and other relevant information:
1. Financials:
a. Revenue: Flowers Foods reported net sales of $3.94 billion in 2020, representing a 2.7% increase from 2019.
b. Net Income: The company's net income was $269.7 million in 2020, a 10.7% increase from the previous year.
c. Gross Profit Margin: The gross profit margin for Flowers Foods was 45.6% in 2020.
d. Net Profit Margin: The net profit margin was 6.8% in 2020.
2. Earnings:
a. Earnings per Share (EPS): Flowers Foods reported diluted earnings per share of $0.94 in 2020, up 12.1% from 2019.
b. Quarterly Earnings: The company has consistently reported positive quarterly earnings surprises in recent years, with an average surprise of 5.5%.
c. Guidance: Flowers Foods has a history of providing conservative guidance, which has led to positive earnings surprises.
3. Growth:
a. Revenue Growth: Flowers Foods has consistently delivered revenue growth, with a compound annual growth rate (CAGR) of 2.6% from 2018 to 2020.
b. Segment Performance: The company's legacy bread business, which accounts for over 70% of sales, has been declining in recent years. However, the company has seen growth in its snack cake and frozen food segments.
4. Dividend:
a. Dividend Yield: Flowers Foods has a dividend yield of around 2.7%, which is slightly lower than the industry average.
b. Dividend Payout: The company has a history of paying consistent dividends, with a payout ratio of approximately 40%.
5. Valuation:
a. Price-to-Earnings Ratio (P/E Ratio): Flowers Foods has a forward P/E ratio of around 21.5, which is slightly below the industry average.
b. Price-to-Sales Ratio (P/S Ratio): The company's forward P/S ratio is around 1.5, which is also slightly below the industry average.
6. Management:
a. CEO: Ryals McMullian has been the CEO of Flowers Foods since 2013. He has a long history with the company, having joined in 1981.
b. CFO: William (Bill) F. Hagy Jr. has been the CFO of Flowers Foods since 2019. He has over 20 years of experience in finance and operations.
7. Industry Comparison:
a. Compared to its peers in the food and beverage industry, Flowers Foods has a more diversified product portfolio, with a presence in the bread, snack cake, and frozen food segments.
b. The company has a strong brand portfolio, including Nature's Own, Pepperidge Farm, and Tastykake.
8. Growth Prospects:
a. Acquisitions: Flowers Foods has a history of acquiring smaller companies to expand its product portfolio and increase its presence in the market.
b. Innovation: The company has been investing in new product development and brand revitalization, focusing on healthier and more sustainable options.
9. Risks and Challenges:
a. Competition: The baked foods industry is highly competitive, with several other major players such as Grupo Bimbo, Hostess Brands, and Kellogg.
b.Raw Material Costs: Flowers Foods faces risks associated with fluctuating raw material costs, particularly for wheat, sugar, and corn. The company has been implementing pricing actions to mitigate these costs.
Overall, Flowers Foods has a strong brand portfolio, a diverse product range, and a history of consistent earnings growth. While competition and raw material costs pose risks, the company's focus on innovation and acquisitions should help it continue to grow and expand its presence in the market.