Benzinga | Aug 13, 2021 06:23AM EDT

Flowers Foods Q2 Earnings Top Estimates, Lifts FY21 EPS Outlook

* Flowers Foods Inc (NYSE:FLO) reported a second-quarter FY21 sales decline of 0.8% year-on-year, to $1.017 billion, marginally ahead of the consensus of $1.010 billion.

* Branded retail sales decreased 2.0% Y/Y to $674.7 million, store-branded retail sales fell 9.4% to $131.0 million, while non-retail and other sales rose 9.9% to $211.5 million.

* Materials, supplies, labor, and other production costs were 49.5% of sales, a 20-basis point increase.

* The operating margin was 7.3%, and operating income for the quarter fell 6.7% to $73.9 million.

* Flowers Foods held $292.3 million in cash and equivalents as of July 17, 2021.

* Adjusted EBITDA decreased 5.0% Y/Y to $122.1 million, and the margin contracted 50 basis points to 12.0%.

* Adjusted EPS of $0.32 beat the analyst consensus of $0.28.

* Outlook: Flowers Foods expects FY21 Sales of $4.256 billion - $4.300 billion (prior $4.234 billion - $4.300 billion) versus the consensus of $4.25 billion.

* EPS of $1.17 - $1.22 (prior $1.10 - $1.17) versus the consensus of $1.15.

* Price Action: FLO shares closed lower by 0.65% at $22.87 on Thursday.