THOMASVILLE, Ga. (AP) — Flowers Foods' first-quarter net income more than doubled thanks to a large gain related to its acquisition of the Sara Lee business in California.
The baked goods company, which is best known for its Tastykake products and is pursuing some of Hostess' major bread brands, earned $113.3 million, or 81 cents per share, for the period ended April 20. That's up sharply from $37.9 million, or 28 cents per share, a year ago.
Flowers Foods closed on its acquisition of the Sara Lee and Earthgrains brands for sliced breads, buns and rolls in California from BBU Inc. in February.
Removing 37 cents per share tied to the Sara Lee/California acquisition and other items, earnings were 46 cents per share. Analyst polled by FactSet predicted earnings of 43 cents per share.
Revenue rose to $1.13 billion from $898.2 million due partly to contributions from Lepage Bakeries and the Sara Lee/California acquisitions as well as better volumes. Wall Street expected $1.1 billion in revenue.
Direct to store delivery sales — which comprises 82 percent of total revenue — climbed 25.1 percent. Warehouse sales — which make up 18 percent of total revenue, increased 29.5 percent.
Flowers Foods Inc. said Thursday that its agreement to buy Hostess' Wonder, Nature's Pride, Merita, Home Pride and Butternut bread brands, 20 bakeries and about 38 depots for about $360 million was approved by the bankruptcy court and is currently under regulatory review.
But the Thomasville, Ga., company's $30 million offer for the Beefsteak brand was topped by another bidder and the agreement was terminated. Flowers Foods received a breakup fee of $900,000 related to its Beefsteak bid.
Its shares finished at $34.42 on Wednesday. Its shares have traded in a 52-week range of $18.46 to $34.61.