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Jul 31, 2024
Smucker Q1 2025 Earnings Report
Smucker's first quarter of fiscal year 2025 experienced net sales and earnings growth, driven by the Hostess Brands acquisition and progress in core business performance.
Key Takeaways
Smucker reported an 18% increase in net sales to $2.1 billion, driven by the Hostess Brands acquisition. Adjusted earnings per share increased by 10% to $2.44. The company updated its full-year fiscal 2025 financial outlook.
Net sales increased by 18% to $2.1 billion, with a 1% increase excluding acquisitions, divestitures, and foreign currency exchange.
Net income per diluted share was $1.74, while adjusted earnings per share increased by 10% to $2.44.
Cash provided by operations was $172.9 million, and free cash flow was $49.2 million.
The company updated its full-year fiscal 2025 financial outlook, including net sales and adjusted earnings per share.
Smucker
Smucker
Smucker Revenue by Segment
Smucker Revenue by Geographic Location
Revenue by Segment
U.S. Retail Coffee Revenue
CapyFin.comFrozen Handheld & Spreads Revenue
CapyFin.comU.S. Retail Pet Foods Revenue
CapyFin.comSweet Baked Snacks Revenue
CapyFin.comInternational & AFH Revenue
CapyFin.comRevenue by Geographic Location
Total Revenue
CapyFin.com Forward Guidance
The Company updated its full-year fiscal 2025 guidance. Net sales are expected to increase 8.5% to 9.5%. Adjusted earnings per share are expected to range from $9.60 to $10.00. Free cash flow is expected to be approximately $875.0 million with capital expenditures of $450.0 million.
Positive Outlook
- Net sales is expected to increase 8.5 to 9.5 percent compared to the prior year.
- Comparable net sales is expected to increase approximately 0.5 to 1.5 percent.
- Adjusted earnings per share is expected to range from $9.60 to $10.00, based on 106.6 million weighted-average common shares outstanding.
- Adjusted gross profit margin of approximately 37.5 percent reflecting higher than anticipated green coffee costs.
- Free cash flow is expected to be approximately $875.0 million with capital expenditures of $450.0 million.
Challenges Ahead
- Ongoing dynamic consumer environment driven by inflationary pressures and diminished discretionary income affecting the dog snacks and sweet baked goods categories.
- Anticipated impacts of elasticity of demand within our coffee portfolio due to additional pricing actions as a result of higher than expected green coffee costs.
- Guidance also reflects a decline of approximately $100.0 million of contract manufacturing sales related to the divested pet food brands as compared to the prior year.
- Interest expense is expected to be $400.0 million.
- Adjusted effective income tax rate is anticipated to be 24.3 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income