As previously announced, Flower Foods expects sales growth of 2.5% to 4.5% and earnings per share growth of 10% to 15% for the full-year.
"Looking ahead, even though the marketplace remains competitive and promotional activity high, we are encouraged by a slight improvement in our foodservice business and in overall sales compared to the beginning of the year," Flower Foods' chief George Deese said in a press release.
For the first quarter, Flower Foods reported net income of $40.7 million, an increase of 8.8% from the previous year, while its earnings per share was 44 cents a share, a 10% increase, beating the consensus target by 2 cents. During the quarter, Flower Foods experienced a decrease in ingredient costs, particularly flour, and lower packaging costs.
Sales in the quarter for Flower Foods decreased 1.5% to $795 million, as a result of both unfavorable pricing and decreased volume, particularly in the foodservice and store-branded retail channels. Analysts were expected first-quarter sales of $815.29 million.
Shares of Flower Foods opened down 1%, to $25.75, in early morning trading.
-- Reported by Andrea Tse in New York
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