Flowers Foods, a US-based bakery business, is shutting down a bun plant in Baton Rouge, Louisiana, operated by Flowers Baking Co. Despite the closure of bun production, the shipping department will remain operational, although job losses are expected.
Darin Allen, the plant manager, announced that bakery production will cease between 18 September and 1 October. Affected employees will receive a severance package and job placement support services to aid in their transition.
In a statement, Allen mentioned that the company plans to discontinue baking operations but continue shipping to customers through a broader bakery warehouse network in Louisiana.
Flowers Foods, known for the Dave’s Killer Bread brand, reported a 2.8% increase in sales revenue to $1.58 billion in the first quarter. Adjusted EBITDA also rose by 5.5% to $159.4 million. However, net income saw a slight increase of 3.3% to $73 million and a 0.8% decrease on an adjusted basis to $80.3 million.
The company’s Chairman and CEO, Ryals McMullian, emphasized a focus on higher-margin branded products and the discontinuation of less profitable items. Despite challenging market conditions, Flowers Foods managed to gain market share in the fresh packaged bread category.
Looking ahead, the sales outlook for the 2024 fiscal year remains at $5.09-$5.17 billion, with adjusted EBITDA projected at $524-$553 million. Flowers Foods previously closed a bread and bun factory in Arizona due to cost constraints.
