FLowers Foods Narrows FY2025 Sales Guidance from $5.239B-$5.308B to $5.254B-$5.306B vs $5.268B Est

For the 53-week Fiscal 2025, the Company Expects:

• Net sales of approximately $5.254 billion to $5.306 billion, representing 2.9% to 4.0% growth compared to the prior year. Prior guidance called for net sales of approximately $5.239 billion to $5.308 billion, representing 2.7% to 4.0% growth. Excluding the Simple Mills acquisition, we expect net sales of approximately $5.033 billion to $5.083 billion, representing a change of -1.4% to -0.4% compared to the prior year. Prior guidance, excluding the Simple Mills acquisition, called for net sales of approximately $5.021 billion to $5.083 billion, representing a change of -1.6% to -0.4% compared to the prior year. The partial-year benefit of the Simple Mills acquisition is expected to contribute $221 million to $223 million to net sales, compared to prior guidance of $218 million to $225 million. The 53rd week is expected to contribute $70 million to $80 million to net sales.
• Adjusted EBITDA(3) in the range of approximately $515 million to $532 million, compared to prior guidance of $512 million to $538 million. Excluding the Simple Mills acquisition, we expect adjusted EBITDA(3) of approximately $485 million to $499 million, compared to prior guidance of approximately $482 million to $505 million. The partial-year benefit of the Simple Mills acquisition is expected to contribute $30 million to $33 million to adjusted EBITDA(3), consistent with prior guidance. The 53rd week is expected to contribute $5 million to $7 million to adjusted EBITDA(3).
• Adjusted diluted EPS(2) of approximately $1.02 to $1.08, compared to prior guidance of $1.00 to $1.10. Excluding the Simple Mills acquisition, we expect adjusted diluted EPS(2) of $1.10 to $1.15, compared to prior guidance of $1.08 to $1.17. The partial-year contribution of the Simple Mills acquisition to adjusted diluted EPS(2) is expected to be ($0.08) to ($0.07), consistent with prior guidance. The 53rd week is expected to contribute approximately $0.02 to adjusted diluted EPS(2).

The company's outlook is based on the following assumptions:

• Depreciation and amortization of approximately $168 million to $172 million.
• Net interest expense of approximately $58 million to $62 million.
• An effective tax rate of approximately 24.5%, compared to prior guidance of 25.0%.
• Weighted average diluted share count for the year of approximately 212.3 million shares.
• Capital expenditures of approximately $120 million to $130 million, with $3 million to $5 million related to our enterprise resource planning system upgrade, compared to prior guidance of $135 million to $145 million, with $4 million to $6 million related to our enterprise resource planning system upgrade.
• No impact from potential SNAP-benefit disruptions.