Flowers Foods Hosts Investor Briefing At New York Stock Exchange
THOMASVILLE, Ga., April 15, 2015 /PRNewswire/ -- At a two-hour investor briefing on April 14, top executives of Flowers Foods (NYSE: FLO) discussed operating strategy, presented product updates, and reviewed financial performance for the company. The event was held at the New York Stock Exchange and webcast live.
Allen L. Shiver, president and CEO, noted that Flowers has expanded its geographic reach over the last 15 years through a unique combination of acquisitions and organic growth to become the second-largest baker in the U.S., operating 46 bakeries and securing access to over 80% of the population.
"Flowers Foods has an operating strategy that works," said Shiver. "By focusing on the fundamentals of our business—fresh products, excellent customer service, efficient bakeries, attention to consumer trends, and making strategic acquisitions—we believe the company is well-positioned for continued growth over the long-term."
Shiver noted that while the fresh bread category is stabilizing after recent volatility, the focus at Flowers remains on improving the product mix in its core markets and increasing sales volume through expansion in new markets.
Brad Alexander, executive vice president and chief operating officer, commented on current market trends and discussed ongoing efforts at Flowers to introduce new products that respond to consumers' desire for higher quality and greater variety in their foods. "We are always on the lookout for ways to improve our existing product line and identify opportunities for growth in underdeveloped segments," he said. "A good example of this was the introduction of our Cobblestone Bread Co. brand last year, targeting millennials and food enthusiasts seeking fresh breads with unique flavors and characteristics. This year, we are introducing more new products under the brand, focusing on wide pan specialty breads, breakfast items, and tortillas."
Keith Wheeler, president of Flowers Bakeries, the company's largest business segment, emphasized the potential for strong growth in expansion markets. "Flowers has a long history of expanding into new geographic markets and developing them into our core," he said. "Building new markets is a delicate balance and having an experienced team is a huge benefit. As new markets stabilize, they are integrated into our core, and from there, we are able to reach out into new areas."
Steve Kinsey, executive vice president and CFO, noted that over the last ten years, sales have compounded annual growth of approximately 9%, about half driven by organic growth, and half from acquisitions. "We have invested heavily in our bakeries to drive operational efficiencies and anticipate excellent returns on future capital expenditures," said Kinsey. "We've also put production closer to the market, and through shipping automation, we have seen our margins improve."
In closing the meeting, Shiver reiterated a number of factors for future growth. "For decades, our team has been improving the baking process, refining our product quality, and improving delivery systems. We have always focused on innovation and providing service that goes well beyond what is expected," he said. "Those concepts, our investment over time, and our outstanding team, have given Flowers Foods the ability to rise to the challenges of the market and enjoy substantial growth."
The archived presentation can be accessed on the company's Web site: www.flowersfoods.com.
About Flowers Foods
Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of fresh packaged bakery foods in the United States with annual sales of approximately $3.7 billion. Flowers operates bakeries across the country that produce a wide range of bakery products. Among the company's top brands are Nature's Own, Wonder, and Tastykake. Learn more at www.flowersfoods.com.
Forward-Looking Statements
Statements contained in this press release that are not historical facts are forward-looking statements. Forward-looking statements relate to current expectations and are often identified by the use of words and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "would," "is likely to," "is expected to" or "will continue," or the negative of these terms or other comparable terminology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company's prospects in general include, but are not limited to, (a) competitive conditions in the baked foods industry, including promotional and price competition, (b) changes in consumer demand for our products, including changes in consumer behavior, trends and preferences, including health and whole grain trends, and the movement toward more inexpensive store-branded products, (c) the success of productivity improvements and new product introductions, (d) a significant reduction in business with any of our major customers including a reduction from adverse developments in any of our customer's business, (e) fluctuations in commodity pricing, (f) energy and raw material costs and availability and hedging and counterparty risk, (g) our ability to fully integrate recent acquisitions into our business, (h) our ability to achieve cash flow from capital expenditures and acquisitions and the availability of new acquisitions that build shareholder value; (i) consolidation within the baking industry and related industries; and (j) the failure of our information technology systems to perform adequately, including any interruptions, intrusions or security breaches of such systems. The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. In addition, you should consult other disclosures made by the company, including the risk factors included in our most recently filed Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and disclosures made in other filings with the SEC and company press releases, for other factors that may cause actual results to differ materially from those projected by the company. We caution you not to place undue reliance on forward-looking statements, as they speak only as of the date made and are inherently uncertain. The company undertakes no obligation to publicly revise or update such statements, except as required by law.
SOURCE Flowers Foods, Inc.
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