Corrects to remove extraneous word from headline

Overview

• U.S. packaged bakery producer's Q1 sales rose 1.1%, as the Simple Mills acquisition, pricing/mix offset volume declines

• Adjusted EPS for Q1 beat analyst expectations

• Company cites volume declines and higher interest expense as weighing on net income

Outlook

• Flowers Foods expects 2026 net sales of $5.163 bln to $5.267 bln, down -1.8% to up 0.2%

• Company sees 2026 adjusted EBITDA between $465 mln and $495 mln

• Flowers Foods expects 2026 adjusted diluted EPS of $0.80 to $0.90

Result Drivers

• NET SALES - The increase of pricing/mix and the Simple Mills acquisition rose net sales

• HIGHER INTEREST EXPENSE - Net income fell due to higher interest expense from debt issued to fund the Simple Mills acquisition

• INFLATIONARY PRESSURE - Co said inflationary pressure on consumer spending contributed to lower sales in non-branded categories

Company press release: ID:nPnrmhrFa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Slight Miss*	$1.57 bln	$1.58 bln (5 Analysts)
Q1 Adjusted EPS	Beat	$0.29	$0.26 (5 Analysts)
Q1 EPS		$0.20
Q1 Adjusted Net Income		$60.90 mln
Q1 Net Income		$42.10 mln
Q1 Adjusted EBITDA		$159 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Flowers Foods Inc is $8.00, about 10.5% above its May 20 closing price of $7.24

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

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