INVESTOR FACT SHEET NYSE: FLO - Flowers Foods/media/Files/F/...Apr 01, 2020 · Business: The...
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Business: The second-largest producer and marketer of packaged bakery foods in the U.S. 2019 sales: $4.1 billion Bakeries: 46 efficient bakeries in 18 states Employees: Approx. 9,700 Products: Breads, buns, rolls, snack cakes,and tortillas Top brands: Nature’s Own, Dave’s Killer Bread, Tastykake, Canyon Bakehouse, Mrs. Freshley’s, Wonder Market: Retail and foodservice. Fresh bakery foods to 85% of the U.S. population through a network of independent distributors; frozen bakery items and snack cakes to customers’ warehouses nationwide. INVESTOR FACT SHEET NYSE: FLO | MARKET CAP: $4.134 B | APRIL 2020 VISION As America’s premier baker, we craſt foods that make people smile. We are driven by a passion to boldly grow our business through inspiring leadership, teamwork, and creavity. VALUE CREATION STRATEGIES Focus on Brands Prioritize national brands, invest in brand growth and innovation, and streamline product assortment Prioritize Margins Reduce organizational and indirect costs; focus on strategic pricing and optimizing portfolio and network profitability Smart M&A Pivot portfolio to growing bakery segments; seek M&A in bakery foods category and geographic adjacencies Develop Team Enhance critical capabilities to build brands, manage costs, deliver insights, and drive execution FISCAL 2020 GUIDANCE Sales growth: 2% - 4% GAAP EPS: $0.50 - $0.64 Adjusted EPS: $1.00 - $1.08 FY 2019 SNAPSHOT COMPANY STRENGTHS PRODUCT MIX SALES CHANNELS 1 Thrift stores, vending, retail distributor Chart data should not be used for historical comparisons since some business has shifted and because of changes in geographic definition. 16% Fresh snack cakes, pastries 77% Fresh breads, buns, rolls, and tortillas 32% Mass merchandiser/ discount 4% Convenience store 4% Other 1 21% Foodservice 39% Supermarket/ Drug • Leading brands in a key, fast-moving consumer goods category • Proven ability to grow share in underdeveloped product segments and geographic regions • Execung iniaves to opmize porolio and network profitability with a focus on managing costs, leveraging data-driven insights, and reposioning company for success • Track record of disciplined M&A with seamless integraon • Consistent cash generaon and track record of growing shareholder dividends • Broad product range – breads, buns, rolls, snack cakes, torllas • Dual distribuon capability – fresh bakery foods distributed daily by independent distributor partners (direct-store delivery 85% of business) and fresh and frozen products delivered to customers’ warehouses naonwide • Conservave financial posion with investment-grade debt rang 60% Branded retail 24% Non-retail and other SALES BY CATEGORY 16% Store-branded retail BRAND SHARE, TOTAL U.S. Breads, Buns, Rolls BRAND STRENGTHS 16% Other private label 29% BBU/Sara Lee 25% Other brands 17% Flowers branded CATEGORY STRENGTHS $29.2 billion retail sales* $7.7 billion foodservice sales** *IRI Custom Database – 52 weeks ending 12/29/19 **Technomic FY2019 • Across the grocery store segment, fresh bread and rolls is the fourth-largest category, in dollars, behind carbonated beverages, beer/ale/alcoholic cider, and salty snacks.*** • Bread is the No. 1 grocery category in weekly true profits.**** • 98.1% of households buy fresh packaged bread.*** ***IRI Panel Data ****Willard Bishop Super Study (Numbers should not be used for historical comparison because of change in IRI data.) America’s best-selling bread. Nature’s Own fresh breads and buns have no artificial preservatives, colors, or flavors and no high fructose corn syrup. The #1 gluten-free bread brand in the country – Canyon Bakehouse offers breads, buns, bagels, English muffins, and specialty items. The #1 organic bread brand in the U.S., Dave’s Killer Bread is packed with protein, fiber, and whole grains with no artificial anything. Non-GMO and certified organic – it will rock your world. Tastykake – one taste and you’ll know why it’s been a favorite of many for more than 100 years. Mrs. Freshley’s wide array of sweet treats are available in vending machines, convenience stores, and other retail outlets nationwide. Hot dog, hamburger, or sandwich, Wonder Bread is the way to go. Instill a little wonder in whatever you’re eating next! 7% Flowers store brand IRI Flowers Custom Database Total MultiOutlet – 52 weeks ending 12/29/19 Flowers Private Label Sales SDW. Chart data should not be used for historical comparison because of changes in geographic definition. 6.0% Pepperidge Farm 7% Frozen breads, rolls
Transcript of INVESTOR FACT SHEET NYSE: FLO - Flowers Foods/media/Files/F/...Apr 01, 2020 · Business: The...
Business: The second-largest producer and marketer of packaged bakery foods in the U.S. 2019 sales: $4.1 billion Bakeries: 46 efficient bakeries in 18 states Employees: Approx. 9,700 Products: Breads, buns, rolls, snack cakes,and tortillas Top brands: Nature’s Own, Dave’s Killer Bread, Tastykake, Canyon Bakehouse, Mrs. Freshley’s, Wonder Market: Retail and foodservice. Fresh bakery foods to 85% of the U.S. population through a network of independent distributors; frozen bakery items and snack cakes to customers’ warehouses nationwide.
INVESTOR FACT SHEET NYSE: FLO | MARKET CAP: $4.134 B | APRIL 2020
VISIONAs America’s premier baker, we craft foods that make people smile. We are driven by a passion to boldly grow our business through inspiring leadership, teamwork, and creativity.
VALUE CREATION STRATEGIESFocus on Brands Prioritize national brands, invest in brand growth and innovation, and streamline product assortment
Prioritize Margins Reduce organizational and indirect costs; focus on strategic pricing and optimizing portfolio and network profitability
Smart M&A Pivot portfolio to growing bakery segments; seek M&A in bakery foods category and geographic adjacencies
Develop Team Enhance critical capabilities to build brands, manage costs, deliver insights, and drive execution
FISCAL 2020 GUIDANCESales growth: 2% - 4%GAAP EPS: $0.50 - $0.64Adjusted EPS: $1.00 - $1.08
FY 2019 SNAPSHOT
COMPANY STRENGTHS
P R O D U C T M I X S A L E S C H A N N E L S1Thrift stores, vending, retail distributor
Chart data should not be used for historical comparisons since some business has shifted and because of changes in geographic definition.
16% Fresh snack cakes,
pastries
77% Fresh breads, buns, rolls, and tortillas
32% Mass merchandiser/discount
4% Convenience store4% Other1
21% Foodservice
39% Supermarket/Drug
• Leading brands in a key, fast-moving consumer goods category
• Proven ability to grow share in underdeveloped product segments and geographic regions
• Executing initiatives to optimize portfolio and network profitability with a focus on managing costs, leveraging data-driven insights, and repositioning company for success
• Track record of disciplined M&A with seamless integration
• Consistent cash generation and track record of growing shareholder dividends
• Broad product range – breads, buns, rolls, snack cakes, tortillas
• Dual distribution capability – fresh bakery foods distributed daily by independent distributor partners (direct-store delivery 85% of business) and fresh and frozen products delivered to customers’ warehouses nationwide
• Conservative financial position with investment-grade debt rating
60% Branded retail
24% Non-retail and other
S A L E S BY C AT E G O R Y
16% Store-branded
retail
BRAND SHARE, TOTAL U.S.Breads, Buns, Rolls
BRAND STRENGTHS
16%Other
private label29%BBU/Sara Lee
25% Other brands
17% Flowers branded
CATEGORY STRENGTHS$29.2 billion retail sales*$7.7 billion foodservice sales**
*IRI Custom Database – 52 weeks ending 12/29/19
**Technomic FY2019
• Across the grocery store segment, fresh bread and rolls is the fourth-largest category, in dollars, behind carbonated beverages, beer/ale/alcoholic cider, and salty snacks.***
• Bread is the No. 1 grocery category in weekly true profits.****
• 98.1% of households buy fresh packaged bread.******IRI Panel Data
****Willard Bishop Super Study(Numbers should not be used for historical comparison because of change in IRI data.)
America’s best-selling bread. Nature’s Own fresh breads and buns have no artificial preservatives, colors, or flavors and no high fructose corn syrup.
The #1 gluten-free bread brand in the country – Canyon Bakehouse offers breads, buns, bagels, English muffins, and specialty items.
The #1 organic bread brand in the U.S., Dave’s Killer Bread is packed with protein, fiber, and whole grains with no artificial anything. Non-GMO and certified organic – it will rock your world.
Tastykake – one taste and you’ll know why it’s been a favorite of many for more than 100 years.
Mrs. Freshley’s wide array of sweet treats are available in vending machines, convenience stores, and other retail outlets nationwide.
Hot dog, hamburger, or sandwich, Wonder Bread is the way to go. Instill a little wonder in whatever you’re eating next!
7% Flowers store brand
IRI Flowers Custom Database Total MultiOutlet – 52 weeks ending 12/29/19 Flowers Private Label Sales SDW. Chart data should not be used for historical comparison because of changes in geographic definition.
6.0% Pepperidge Farm
7% Frozen breads, rolls
*In addition to cash, stock and debt are used
to fund acquisitions.
$0.75
$0.70
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
Cap ex
Acquisitions*
PensionShare repurchases
DividendsFY18
FY19
FY15
FY16
FY17
$493.0
$274.0
$618.3
$360.1
$220.5
INDEPENDENT DISTRIBUTOR PARTNER (IDP) MODEL
CAPITAL ALLOCATION in millions
DIVIDENDS PER SHARE 2004 – 2019
SALES% growth
0.8%
<0.2>%
4.4%
$3,921
$4,124
$3,952
17
19
18
in millions
GROSS MARGIN*
19
18
17 48.7%
47.7%
47.7%
COMPONENTS OF ADJ. EBITDA*
1Includes direct labor & indirect manufacturing expenses2Includes selling & administrative expenses
ADJUSTED EBITDA*% margin
10.3%
10.4%
11.3%$4431
$4231
$4111
19
18
17
ADJUSTED NET INCOME* % of sales
4.8%
5.0%
$1871
$204119 5.0%
$198118
17
ADJUSTED DILUTED EPS* % change
5.6%
<4.3>%
2.1%
$0.891
$0.941
$0.96119
18
17
INDEPENDENT DISTRIBUTOR PARTNER (IDP) MODEL• Independent distributor partners control
and direct independent businesses.
• Business model motivates IDPs to increase sales through outstanding service and merchandising.
• Approximately 5,600 territories
• More info at flowersfoods.com/partners
25%Shipping/
distribution
10%Adj.
EBITDA 29%Ingredients/
packaging
13%All other2
23%Conversion1
% of FY19 Sales
1Excluding one-time events. *Reconciliations of non-GAAP measures are available at flowersfoods.com. Click on Investor Center and select Financial Documents.
in millions
in millions
Contact: J.T. Rieck, VP Treasury/IR, 229.227.2253, [email protected], Flowers Foods, 1919 Flowers Cir., Thomasville, GA 31757, flowersfoods.com
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Fresh/DSD
Frozen/Warehouse available throughout the continental U.S.
46 BAKERIES & FRESH/FROZEN DISTRIBUTION
Flowers bakeries
’19’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18
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