Flowers Foods, Inc. (NYSE: FLO), producer of Nature's Own, Dave's Killer Bread, Wonder, Tastykake, and other bakery foods, has announced an update to its strategic priorities and a revision to its long-term growth targets.
Revised Long-term Outlook
The company is announcing the following long-term goals that incorporate annual growth targets for sales, EBITDA, and EPS:
- Sales growth of 1 percent to 2 percent (excluding M&A);
- EBITDA growth of 4 percent to 6 percent (excluding M&A); and
- EPS growth of 7 percent to 9 percent (including M&A, share repurchases).
The company is executing on four strategic priorities to achieve its revised long-term growth targets, including:
- Developing the company's team with capabilities to build brands and create value;
- Enhancing the relevancy and expanding the presence of the company's valued brands;
- Prioritizing margins by optimizing its portfolio and supply chain; and
- Proactively seeking out disciplined and highly strategic M&A opportunities in grain-based foods.
"Our long-term strategic plans are intended to position Flowers to drive growth, operate more efficiently and, ultimately, deliver enhanced shareholder value, now and in the years to come," said Ryals McMullian, Flowers Foods president and CEO. "As part of our updated strategic priorities, we are shifting our focus to value-added, branded retail products that we project will drive the top line and improve margins. We also expect our optimized portfolio to drive share gains by targeting growth segments with innovative products."
McMullian continued, "Leveraging the knowledge gained from Project Centennial, and to help offset inflationary pressures, we are continuing the supply chain optimization work with comprehensive efficiency-improvement and cost-reduction plans. Finally, we will allocate our strong free cash flow to strategic acquisitions, opportunistic share repurchases, and dividends using a disciplined process focused on maximizing returns to our shareholders and maintaining a conservative financial position. Our team is already executing on these plans with enthusiasm and energy, and we are confident that we are positioning the company for an even stronger future."