Flowers Foods Inc. reported financial results for the first quarter of 2025, which ended on April 19. The company's net sales decreased by 1.4% to $1.554 billion, as the benefits from the acquisition of Simple Mills were more than offset by declines in pricing/mix and volume. Net income for the quarter fell by 27.4% to $53.0 million, accounting for 3.4% of sales. This decline was primarily due to reduced sales, higher SD&A expenses, and increased interest expenses, although there was a partial offset from moderating ingredient costs. Adjusted net income decreased by 8.2% to $73.7 million. The company's adjusted EBITDA, however, saw a slight increase of 1.6% to $162.0 million, representing 10.4% of net sales. The acquisition of Simple Mills contributed $24.3 million to net sales but resulted in a net loss of $4.2 million. Moving forward, for the 53-week fiscal year 2025, Flowers Foods expects net sales to be between $5.297 billion and $5.395 billion, indicating a growth of 3.8% to 5.7% compared to the prior year. Excluding the Simple Mills acquisition, expected net sales range from $5.079 billion to $5.170 billion, showcasing a growth range of -0.5% to 1.3% compared to the previous year. The Simple Mills acquisition is anticipated to contribute between $218 million and $225 million to net sales for the year. Additionally, the 53rd week is projected to add $70 million to $80 million to the company's net sales.
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