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Jul 31, 2021
Smucker Q1 2022 Earnings Report
Smucker's Q1 2022 financial results reflected organic net sales growth, while earnings were in line with expectations, despite navigating significant supply chain volatility, disruption, and cost inflation.
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
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 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