Despite Jump in Commodity Costs, Flowers Foods Posts 8% Rise in Second-Quarter Net Income

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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite a sharp increase in commodity costs, Flowers Foods Incorporated (NYSE:FLO) (Thomasville, Georgia) announced in a conference call on August 14 that its second-quarter net income jumped almost 8% to $23.9 million compared with the same period last year. "Sales for the quarter showed growth across all categories, with our retail brands performing well," George Deese, Chairman, CEO and President of Flowers Foods, said in a statement.

During the second quarter, the company completed its merger with Holsum Bakery (Phoenix, Arizona) and the acquisition of ButterKrust Bakery (Lakeland, Florida). "Together, they will add about $220 million in annual sales and help fuel Flowers Foods' growth and expansion," Mr. Deese said.

The company stated that it expects capital spending to be between $95 million and $100 million in the 2008 fiscal year. Industrial Info is tracking two active Flowers Foods projects: the new $52 million Bardstown Bakery in Kentucky and the new $50 million Groveland Bakery in Florida. The Bardstown Bakery is expected to be complete in October 2008, and the Groveland Bakery is planned for 2010. Industrial Info has been tracking the projects since November 2007. For related information, see March 5, 2008, news article - Inclement Weather Slows Construction of New Flowers Bakery in Kentucky.

Flowers Foods is a leading producer of packaged bakery foods with top brands including Nature's Own, Aunt Hattie's, Cobblestone Mill and Sunbeam. According to Mr. Deese, branded retail sales rose 15.8% in the quarter. "The strength of our products and brands, the quality of our bakeries and our distribution system, and the experience and determination of our team provides us with the confidence we can deliver good results for the full year and continue to build value for our shareholders in the future," he said.

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Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.