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Jul 31, 2020
Smucker Q1 2021 Earnings Report
Smucker's first quarter 2021 results reflected strong growth across nearly all categories, driven by elevated at-home consumption and retailer inventory re-stocking.
Key Takeaways
Smucker announced strong first quarter results, exceeding expectations with growth across U.S. and International retail businesses, partially offset by a decline in the Away From Home business. Net sales increased by 11%, adjusted earnings per share rose by 50%, and free cash flow significantly increased compared to the prior year. The company raised its full-year fiscal 2021 outlook for net sales, adjusted earnings per share, and free cash flow.
Net sales increased 11 percent, driven by growth across U.S. and International retail businesses.
Adjusted earnings per share increased 50 percent.
Free cash flow was $332.4 million, compared to $148.5 million in the prior year.
Full-year fiscal 2021 net sales, adjusted earnings per share, and free cash flow outlook were increased.
Smucker
Smucker
Smucker Revenue by Segment
Revenue by Segment
U.S. Retail Coffee Revenue
CapyFin.comU.S. Retail Pet Foods Revenue
CapyFin.comInternational & AFH Revenue
CapyFin.com Forward Guidance
The Company updated its full-year fiscal 2021 guidance. Net sales are expected to range from flat to up 1 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.20 to $8.60. Free cash flow is expected to range from $925 to $975 million.
Positive Outlook
- Net sales change vs prior year: 0% - 1%
- Adjusted earnings per share: $8.20 - $8.60
- Free cash flow (in millions): $925 - $975
- Capital expenditures (in millions): $300
- Effective tax rate: 24.0 %
Challenges Ahead
- Outbreak of COVID-19 continues to impact financial results and cause uncertainty for the full-year fiscal 2021 projections.
- Net sales growth anticipated to moderate throughout the remainder of the fiscal year.
- Net sales growth will be partially offset by a decline for the Company's Away From Home business
- Net sales growth will be partially offset by the lapping of a $185 million incremental benefit to net sales related to COVID-19 in the fourth quarter of the prior year.
- SD&A expenses to increase 1 to 2 percent compared to the prior year
Revenue & Expenses
Visualization of income flow from segment revenue to net income