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Jul 31, 2022
Smucker Q1 2023 Earnings Report
Smucker's Q1 2023 performance reflected a strong start to the fiscal year, demonstrating operational excellence and strength of strategy.
Key Takeaways
Smucker's Q1 2023 results showed a 1% increase in net sales, with a 4% increase excluding divestitures and foreign currency exchange. Adjusted EPS decreased by 12% due to the Jif® peanut butter product recall. The company increased its full-year fiscal 2023 financial outlook for net sales, adjusted earnings per share, and free cash flow.
Net sales increased by 1%, or 4% excluding divestitures and foreign currency exchange.
Net income per diluted share was $1.03, while adjusted earnings per share was $1.67, a 12% decrease.
Cash used for operations was $39.0 million, and free cash flow was $(127.3) million.
The company increased its full-year fiscal 2023 financial outlook for net sales, adjusted earnings per share, and free cash flow.
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 2023 guidance. Net sales are expected to increase 4.0 to 5.0 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 be approximately $550 million.
Positive Outlook
- Net sales are expected to increase 4.0 to 5.0 percent compared to the prior year.
- Excluding noncomparable net sales in the prior year for the divested private label dry pet food and natural beverage and grains businesses, net sales are expected to increase approximately 6.5 percent at the mid-point of the guidance range.
- Adjusted earnings per share is expected to range from $8.20 to $8.60.
- This range reflects the benefits of higher net pricing actions and shares repurchased in the prior fiscal year being more than offset by cost inflation.
- Free cash flow is expected to be approximately $550 million.
Challenges Ahead
- Ongoing cost inflation continues to impact financial results and cause uncertainty and risk for the fiscal year 2023 outlook.
- Volatility in supply chains continues to impact financial results and cause uncertainty and risk for the fiscal year 2023 outlook.
- The overall macroeconomic environment continues to impact financial results and cause uncertainty and risk for the fiscal year 2023 outlook.
- The Jif® peanut butter product recall will continue to impact our financial results for the fiscal year.
- This guidance assumes an adjusted gross profit margin range of 33.5 to 34.0 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income