Flowers Foods (FLO) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 25, 2026 astatine 10:42 AM CDT 18 min read

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DATE

Friday, May 22, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• Chairman and Chief Executive Officer — A. Ryals McMullian

• Chief Financial Officer — Diego Scaglione

Full Conference Call Transcript

A. McMullian: Okay. Thanks, J.T. Good morning, everybody. Our squad continued to execute against a challenging backdrop and softer top-line trends successful the quarter, delivering bottommost enactment results up of expectations. We precocious the broad reappraisal of our marque portfolio, proviso concatenation and fiscal strategy, and I'm precise encouraged by the advancement we're making there. We sharpened our absorption connected our halfway brands, including our nationwide relaunch of Nature's Own, portion continuing to fortify our presumption successful Better For You segments. We besides saw affirmative trends successful premium breadstuff and barroom categories, helping america offset immoderate of the ongoing softness successful the accepted loaf class wherever we underperformed successful the quarter.

In addition, we took initiatives to thrust efficiencies crossed our proviso concatenation portion further strengthening our equilibrium expanse and our fiscal flexibility. Together, these efforts are positioning america to present much accordant and sustainable maturation and profitability implicit the agelong term. Looking ahead, we'll stay focused connected executing this strategy and positioning the concern to thrust worth for shareholders. And I privation to convey our squad for their continued absorption and commitment. And truthful with that, Marvin, we tin unfastened it up for questions.

Operator: [Operator Instructions] Our archetypal question comes from the enactment of Jim Salera of Stephens.

James Salera: I wanted to commencement disconnected with your presumption connected inflation, fixed however overmuch commodities person moved since the commencement of the Iran conflict. Can you conscionable locomotion america done your outlook connected inflation, however that's changed since the opening of the year? And immoderate details you tin stock astir your hedging programme and possibly interior ostentation expectations for the remainder of the year?

Diego Scaglione: Sure. I'll instrumentality that. First off, recall, our hedging programme truly builds the cadence arsenic we advancement done the year. So we're virtually afloat hedged for the equilibrium of the twelvemonth connected the commodities successful the program. So arsenic we look forward, we spot unit chiefly successful different commodities and the interaction that the terms of lipid has had connected our organisation and resin, which has importantly impacted our packaging costs, and that's an country we didn't spot arsenic a outgo interest erstwhile we started the year. That being said, the teams are looking astatine ways to mitigate that increase, including packaging configurations, alternatives, on with different productivity measures.