US-based baking company Flower Foods has reported that its net earnings for the first quarter of 2013 increased to $113.2m, compared with $37.9m for the same period in 2012.
The increase in net income was driven by acquisition related gains, improved margins and strong double-digit sales growth, despite dollar sales and volume increases across all channels.
For the period ended 20 April 2013, net sales increased 25.8% to $1.13bn, compared with $898.2m for the corresponding period a year ago due to increased volumes of 19.3% and contributions from the Lepage Bakeries and Sara Lee/California acquisitions of 7.7%, partially offset by unfavorable net price/mix of 1.1%.
Flower Foods stated that the results for the Q1 primarily include a benefit of $0.37 per share related to a bargain purchase accounting gain on the Sara Lee/California acquisition, which was completed in February.
Flower Foods chairman and CEO George Deese said that during the quarter, the company achieved substantial sales increases in both segments, across all channels, and in its primary product categories.
"Our investments in our bakeries and our distribution systems over several decades, combined with the strength and determination of our team, allowed us to take on new business and meet the needs of existing and new customers."
"Looking ahead, we expect to have growth opportunities in our newer markets as customers and consumers gain confidence in Nature's Own, Tastykake, and our other strong brands," Deese added.
Currently, the company is focusing on integrating Lepage Bakeries in the Northeast and Sara Lee in California, while maintaining the gains it has achieved in markets throughout the country in recent months.
For the second quarter of 2013, the company expects strong sales and operating profits although it is experiencing start-up costs related to the integration of the Sara Lee business in California.
Flowers Foods, headquartered in Thomasville, Georgia, is a leading producer of packaged bakery foods in the US. The company operates 44 bakeries that produce a wide range of bakery products under its Nature's Own and Tastykake brands.
