Flowers Foods, Inc., which owns the Tastykake bakery in Oxford, announced sales were up 2.6 percent during the first quarter of 2014. The company is the nation’s second-largest producer and marketer of fresh packaged baked goods.
“The results reported for the quarter reflect the underlying strength of our company,” said Allen L. Shiver, president and chief executive officer. “The DSD segment delivered solid sales growth and operating results, despite added costs associated with the Hostess acquisition, start-up of added production capacity, and new market expansion.”
Shiver said the firm paid down $81.2 million in debt, and its investments in Sara Lee/California and in the Hostess assets have helped the company extend its geographic reach to key population centers and to grow market share for breads, buns, and rolls.
Could there be expansion for the Oxford plant pictured above? Flowers closed nine Hostess bakeries and 21 warehouses to cut costs, but anticipates opening another five or six bakeries over the next few years. Shiver said the company is committed to developing efficient bakeries, strong brands, effective distribution, and an experienced team.
For the first quarter of 2014, sales increased 2.6 percent to $1.160 billion, compared to$1.131 billion in last year’s first quarter. Net income for the quarter was $61.1 million, or $0.29 per diluted share, compared to last year’s first quarter of $64.9 million, or $0.31 per diluted share, adjusted for a bargain purchase accounting gain and acquisition-related costs.
R. Steve Kinsey, executive vice president and chief financial officer, said the first half of 2014 offers challenging year-over-year comparisons for Flowers’ cake business due to Hostess’ cake re-launch in mid-2013 and the carrying costs for the acquired facilities. The company continues to expect 2014 sales to be $3.976 billion to $4.126 billion, reflecting an increase of 6 to 10 percent over the prior year.
Tastykake merged with Flowers Foods in 2011. The company, founded in 1914, is 100 years old. Check out the a capella band Eight Beat Measure from the Rochester Institute of Technology singing “Happy Birthday” at www.tastykake.com.