THOMASVILLE, Ga. - Flowers Foods , Inc. (NYSE:FLO), a leading producer of packaged bakery foods, announced today an increase in its quarterly dividend to $0.24 per share, marking a 4.3% rise from the dividend declared in the same quarter the previous year. This latest dividend, the 89th consecutive quarterly payment by Flowers Foods, will be distributed on December 13, 2024, to shareholders on record as of November 29, 2024.
The company, which reported annual sales of $5.1 billion in 2023, operates numerous bakeries across the United States. Flowers Foods' product portfolio includes well-known brands such as Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, and Tastykake.
Flowers Foods' forward-looking statements indicate its anticipation and projections for the business's financial condition and operational results. However, these statements are subject to various risks and uncertainties that could cause actual outcomes to differ significantly. Factors that may influence the company's performance include economic conditions, the competitive landscape, consumer demand, cost and availability of raw materials, and regulatory changes, among others.
The company's caution regarding forward-looking statements is underscored by the acknowledgment that such statements are based on current information and assumptions deemed reasonable, yet they are inherently uncertain. Flowers Foods does not commit to publicly updating any forward-looking statements, emphasizing the importance of consulting further company disclosures for related information.
This dividend announcement is based on a press release statement from Flowers Foods, Inc. and reflects the company's current financial strategy. Shareholders and investors are advised to consider the company's recent financial performance and market position when assessing the significance of this dividend increase.
In other recent news, Flowers Foods showcased strong performance in its third quarter 2024 earnings call, despite market challenges. The company reported growth in fresh packaged breads, gaining market share, and outperforming competitors, particularly in this segment. Executive Vice President J.T. Rieck and CEO Ryals McMullian have outlined strategies for 2025 focusing on branded retail growth and cost savings. Notably, expansion plans for the Wonder brand and innovation within the Dave's Killer Bread snack line were discussed.
Flowers Foods also indicated a reduction in capital expenditures for 2024 due to delayed bakery projects, which are expected to resume in 2025. Furthermore, the company's management expressed optimism about the recovery of the sweet baked goods category and continues to explore merger and acquisition opportunities to diversify its portfolio.
In terms of future expectations, CEO McMullian expressed confidence in achieving an EBITDA margin of 13-14% over time. The company's focus on innovation, product differentiation, and expansion into new geographies suggests a strategic approach to maintaining market leadership amidst recent developments.
InvestingPro Insights
Flowers Foods' recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 4.4%, which is particularly attractive in the current market environment. This latest increase is part of a broader pattern, as an InvestingPro Tip reveals that Flowers Foods has raised its dividend for 10 consecutive years and has maintained dividend payments for an impressive 23 consecutive years.
The company's financial health appears robust, with InvestingPro data showing a market capitalization of $4.6 billion and a revenue of $5.12 billion over the last twelve months as of Q3 2024. This revenue figure closely matches the annual sales reported in the article for 2023, indicating consistent performance.
Another InvestingPro Tip suggests that Flowers Foods is trading at a low P/E ratio relative to its near-term earnings growth, with a current P/E ratio of 18.98. This could indicate potential value for investors, especially considering the company's steady dividend growth and market position.
For readers interested in a deeper analysis, InvestingPro offers additional tips and insights. There are 10 more InvestingPro Tips available for Flowers Foods, providing a comprehensive view of the company's financial health and market position.
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