Smucker Q1 2022 Earnings Report
Key Takeaways
Smucker Co. reported a decrease in net sales by 6%, but excluding divestitures and foreign currency exchange, net sales increased by 1%. Adjusted earnings per share decreased by 20%. The company updated its full-year fiscal 2022 financial outlook, expecting net sales to decrease by 1.5 to 2.5 percent.
Net sales decreased by 6 percent, but increased 1 percent excluding divestitures and foreign currency exchange.
Net income per diluted share was $1.42, while adjusted earnings per share was $1.90, a decrease of 20 percent.
Cash from operations decreased by 66 percent to $137.8 million.
Free cash flow was $69.8 million, compared to $332.4 million in the prior year.
Smucker
Smucker
Smucker Revenue by Segment
Forward Guidance
The Company updated its full-year fiscal 2022 guidance. Net sales are expected to decrease 1.5 to 2.5 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.25 to $8.65. Free cash flow is expected to be approximately $800 million, with capital expenditures of $380 million.
Positive Outlook
- Net sales are expected to increase approximately 2.5 percent on a comparable basis.
- Higher net pricing across multiple categories is anticipated.
- Continued double-digit net sales growth for the Smucker's® Uncrustables® brand is expected.
- A recovery in away from home channels is projected.
- Adjusted effective income tax rate is expected to be 24.0 percent.
Challenges Ahead
- Net sales are expected to decrease 1.5 to 2.5 percent compared to the prior year.
- Adjusted earnings per share is expected to range from $8.25 to $8.65.
- The pandemic and related implications continue to impact financial results and cause uncertainty.
- Cost inflation and volatility in supply chains continue to impact financial results and cause uncertainty.
- Anticipated price elasticity and supply disruption for internationally sourced pet food products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income