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Flowers Foods, Inc. announced its financial results for the fourth quarter and the full fiscal year 2025 on February 12, 2026. The company, headquartered in Thomasville, Georgia, reported a net loss of $67.1 million for the fourth quarter, primarily due to a $136.0 million impairment of intangible assets. Despite this setback, net sales for the quarter increased by 11.0% year-over-year, reaching $1.233 billion.
In the fourth quarter of 2025, Flowers Foods faced various challenges, including a decline in volume. However, the additional week in the fiscal calendar and the acquisition of Simple Mills contributed positively to the sales figures. The adjusted net income for the quarter decreased by 1.5% to $45.8 million, while adjusted EBITDA rose by 14.7% to $117.4 million, amounting to 9.5% of net sales.
For the entire fiscal year 2025, Flowers Foods recorded net sales of $5.256 billion, marking a 3.0% increase compared to the previous year. However, net income plummeted by 66.2% to $83.8 million, largely due to the aforementioned impairment charge. Adjusted diluted earnings per share decreased to $1.09, down from $1.28 in 2024.
Operational Highlights and Future Outlook
The company’s chairman and CEO, Ryals McMullian, expressed optimism regarding the performance of key brands, emphasizing the impact of operational efficiencies. He stated, “Flowers concluded 2025 on a positive note driven by the strong performance of our leading brands.” Despite these positive remarks, McMullian acknowledged that 2026 may present challenges, predicting that financial performance will fall below 2025 levels due to category headwinds and one fewer week of operations.
As part of its response, Flowers Foods is undertaking a comprehensive review of its operations, including its brand portfolio and supply chain strategies. The company’s strong cash flow positions it well for this operational examination, which aims to enhance long-term shareholder value.
Looking ahead, Flowers Foods anticipates net sales in the range of $5.163 billion to $5.267 billion for fiscal 2026. Adjusted EBITDA is expected to fall between $465 million and $495 million, and adjusted diluted EPS is projected to be approximately $0.80 to $0.90.
Financial Details and Key Metrics
In examining the fourth-quarter operating highlights, it is noteworthy that branded retail net sales increased by 16.6% to $811.6 million. This increase was driven by the extra week and contributions from the Simple Mills acquisition, albeit partially offset by volume declines. The overall volume for the quarter decreased by 2.2%, while pricing and mix improved by 0.7%.
The company reported that materials, supplies, and labor costs accounted for 51.5% of net sales, a slight increase attributed to higher outside purchases. Selling, distribution, and administrative (SD&A) expenses were 39.9% of net sales, down by 10 basis points year-over-year due to reduced distribution fees and the integration of Simple Mills.
Flowers Foods ended the fiscal year with cash and cash equivalents totaling $12.1 million. The company’s capital expenditures for 2025 decreased to $127.1 million, while dividends paid to shareholders rose to $209.3 million.
In summary, while Flowers Foods experienced a challenging fourth quarter and fiscal year marked by significant non-cash charges, it also achieved notable sales growth and maintains a strategic focus on operational improvements and brand strength as it looks to navigate the upcoming year.
