Flowers Foods beats estimates as acquisitions boost sales
(Reuters) - Flowers Foods Inc (FLO.N), the No. 2 U.S. baking company, reported better-than-expected second-quarter results, driven by its recent acquisitions of Lepage Bakeries and some of Sara Lee's bread brands in California.
The company, which also acquired certain bread brands from bankrupt Hostess Brands, forecast 2013 profit of 92-98 cents per share. Analysts on average had expected a profit of 97 cents per share, according to Thomson Reuters I/B/E/S.
The Tastykakes snacks maker said it expects 2013 sales of $3.79-$3.82 billion, above market estimates of $3.70 billion.
Flowers purchased most of Hostess' bread business, including its Wonder and Nature's Pride brands for $360 million in July to grab a bigger slice of the fast-consolidating bread industry.
The company's net income rose to $46.5 million in the second-quarter, or 22 cents per share, from $28.4 million, or 14 cents per share, a year earlier.
On an adjusted basis, Flowers Foods earned 24 cents per share, beating analysts' estimates of 23 cents per share.
Sales rose 32 percent to $898.2 million in the quarter ended July 13, above market estimates of $859.39 million.
Shares of Thomasville, Georgia-based Flowers Foods closed at $23.52 on the New York Stock Exchange on Monday.
(Reporting By Maria Ajit Thomas in Bangalore; Editing by Saumyadeb Chakrabarty)
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