Flowers Foods, the maker of iconic brands like Wonder Bread, recently announced a change in its finance leadership. The company appointed D. Anthony Scaglione, a former CFO of Total Wine, to take over as its finance chief starting January 1. This move comes as the current CFO, Steve Kinsey, plans to retire at the end of the year and transition into an advisory role to ensure a smooth handover.
In a press release, Ryals McMullian, the CEO of Flowers Foods, expressed confidence in Scaglione’s ability to deliver value to shareholders and lead the company through the challenges of an increasingly complex and competitive business landscape. The decision to bring in Scaglione follows disappointing second-quarter earnings results for Flowers Foods, where net sales increased slightly but net income decreased due to various factors like increased costs and higher interest expenses.
Despite the challenges, Flowers Foods remains optimistic about its future. The company has adjusted its guidance for the full year, citing macroeconomic uncertainty and shifting consumer demand as ongoing pressures in the bread category. However, McMullian highlighted the company’s portfolio strategy as a promising offset to these challenges.
The stock market reacted to Flowers Foods’ earnings report, with the company’s stock trading down 5.3% immediately following the results. This shift in leadership comes after Kinsey’s announcement of retirement in September, ending his more than 30-year tenure at Flowers Foods, including 18 years as CFO.
As part of his new role, Scaglione will receive an annual base salary of $785,000 and a cash payment of $50,000 upon starting. He will also provide consulting services to Flowers Foods before officially taking over as CFO, showcasing his dedication to a smooth transition. Scaglione brings a wealth of experience to the role, having served as CFO at Total Wine, ODP Corp., and ABM Industries.
Overall, Flowers Foods is optimistic about the future with Scaglione at the helm of its finance department. The company remains focused on navigating challenges in the market and delivering value to its shareholders amidst changing consumer demands and economic uncertainties.
