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How Did Flowers Foods Perform in 4Q15 and 2015?

Gabriel Kane

Yesterday’s Consumer Pops and Drops: HRL, CAJ, GPK, SEE, and FLO

(Continued from Prior Part)

Price movement of Flowers Foods

Flowers Foods (FLO) has a market capitalization of $4.4 billion. FLO rose by 2.8% to close at $20.94 per share as of February 10, 2016. The stock’s price movements on a weekly, monthly, and year-to-date (or YTD) basis are 3.7%, -2.7%, and -2.6%, respectively.

At times, the stock has broken the support of all of its moving averages. Currently, FLO is trading 2.3% above its 20-day moving average, 2.2% below its 50-day moving average, and 7.6% below its 200-day moving average.

The Vanguard S&P Mid-Cap 400 Value ETF (IVOV) invests 0.70% of its holdings in Flowers Foods. The ETF tracks an index of primarily mid-cap US stocks. The index uses three factors to select value stocks from the 400 stocks chosen by the S&P Committee. The YTD price movement of IVOV is -9.0% as of February 9, 2016.

The Guggenheim S&P Mid-Cap 400 Pure Growth ETF (RFG) invests 0.68% of its holdings in Flowers Foods. The ETF tracks a factor-weighted index of the S&P 400 companies exhibiting the strongest growth factors.

The market capitalizations of Flowers Foods’ competitors are as follows:

  • Campbell Soup Company (CPB) — $18.0 billion
  • Panera Bread Company (PNRA) — $4.9 billion

Performance of Flowers Foods in 4Q15 and 2015

Flowers Foods reported 4Q15 sales of $858.4 million, a fall of 2.2% compared to sales of $877.3 million in 4Q14. Sales of direct-store delivery fell by 3.7% and sales of warehouse delivery rose by 6.1% in 4Q15 compared to 4Q14. FLO reported impairment of assets of $1.5 million in 4Q15 compared to $5.8 million in 4Q14.

The company’s net income and EPS (earnings per share) rose to $32.2 million and $0.15, respectively, in 4Q15, compared to $28.0 million and $0.13, respectively, in 4Q14.

2015 results

In 2015, FLO reported sales of $3,778.5 million, a rise of 0.79% YoY (year-over-year). Its net income and EPS rose to $189.2 million and $0.89, respectively, in 2015, compared to $175.7 million and $0.82, respectively, in 2014.

FLO reported cash and cash equivalents and long-term debt of $14.4 million and $1,243.1 million, respectively, in 2015.

The company repurchased 0.3 million shares at an average price of $21.54 per share in 2015. There are 13.7 million shares remaining on its share repurchase program.

The price-to-earnings and price-to-book value ratios of Flowers Foods are 24.1x and 3.6x, respectively, as of February 10, 2016.

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