By Christopher Kuo

Flowers Foods posted a lower profit and cut its dividend as the packaged bakery goods company contended with higher costs in the first quarter.

The packaged bakery goods company reported a profit of $42.1 million, or 20 cents a share, for the 16-week period ended April 25. That was down from $53 million, or 25 cents a share, a year earlier.

Adjusted earnings per share came in at 29 cents a share. Analysts polled by FactSet expected 26 cents a share.

Net sales rose to $1.57 billion from $1.55 billion a year earlier, but missed the $1.58 billion Wall Street expected, according to FactSet. While branded retail net sales increased 3.4%, other net sales fell by 3.1%, driven by inflationary pressure on consumer spending.

Selling, distribution and administrative expenses and materials, supplies, labor and other production costs both increased as a percentage of total sales.

The company also cut its quarterly dividend to 12.5 cents a share from 24.75 cents a share. The new payout of 50 cents a year represents an annual yield of about 7.1% based on Thursday's closing price of $7.01.

The dividend cut allows the company to focus on debt reduction, "while continuing to invest behind the brands, innovation, and capabilities that we believe will drive sustainable above-category growth over time," Chief Executive Ryals McMullian said, adding that the company was reaffirming its guidance for the current year.

Flowers Foods' shares rose 2.7% to $7.20 following the results, after touching a 20-year low of $6.80 in market trading. The stock is down 36% this year.

Write to Christopher Kuo at chris.kuo@wsj.com

(END) Dow Jones Newswires

May 21, 2026 17:07 ET (21:07 GMT)

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