Flowers Foods 3rd-quarter Profit Rises

THOMASVILLE, Ga. (AP) — Flowers Foods Inc. said Wednesday its fiscal third-quarter profit rose 17 percent as sales of branded breakfast bread and multi-pack cake were strong.

For the quarter ended Oct. 10, the bakery product maker's profit rose 17 percent to $31.9 million, or 34 cents per share, from $27.4 million, or 29 cents per share, in the same period last year.

Revenue rose 5 percent to $602.6 million from $575.9 million.

Analysts polled by Thomson Reuters, on average, predicted a profit of 34 cents per share on revenue of $616.5 million.

Flowers Foods, which makes Nature's Own and Whitewheat products, said its direct-store delivery business results were hurt as the company discounted items to protect its market share. However, the warehouse business had higher snack cake sales and benefitted from acquisitions.

Sales of branded white bread were weak due to discounting amid tough competition, but sales of branded breakfast bread, branded multi-pack cake and branded soft variety bread were stronger.

Volume fell 1 percent, mainly in the non-retail channel, which includes the foodservice, vending and institutional categories.

For the fiscal year, the company predicts earnings of $1.37 to $1.40 per share, excluding one-time items, on revenue of $2.6 billion to $2.61 billion.

Analysts expect a profit of $1.43 per share on revenue of $2.65 billion. Analyst estimates typically exclude one-time items.

For 2010, the company expects earnings per share to rise 10 percent to 15 percent, on revenue growth of 2.5 percent to 4.5 percent.