Smucker Q1 2025 Earnings Report
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
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