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Oct 31, 2021
Smucker Q2 2022 Earnings Report
Second quarter results for fiscal year 2022 reflected an increase in net sales and adjusted earnings per share.
Key Takeaways
Smucker's second quarter results exceeded expectations with an 8 percent increase in comparable net sales. The company updated its full-year fiscal 2022 financial outlook, increasing net sales and adjusted earnings per share expectations despite rising cost inflation and supply chain disruption.
Net sales increased $16.0 million, or 1 percent. Net sales excluding divestitures and foreign currency exchange increased 8 percent.
Net income per diluted share was $1.90, a decrease of 6 percent. Adjusted earnings per share was $2.43, an increase of 2 percent.
Cash from operations was $165.1 million, a decrease of 56 percent.
Free cash flow was $105.9 million, compared to $326.3 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 range from down 0.5 percent to up 0.5 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.35 to $8.75, and free cash flow is expected to be approximately $700 million.
Positive Outlook
- Net sales are expected to increase approximately 4.5 percent at the mid-point of the net sales guidance range on a comparable basis.
- Continued double-digit net sales growth for the Smucker's® Uncrustables® brand.
- A recovery in away from home channels is expected.
- The increase in net sales guidance reflects stronger than anticipated demand in the second quarter and remainder of the year.
- Incremental net pricing actions in the remainder of the fiscal year in response to higher costs.
Challenges Ahead
- The pandemic and related implications, along with cost inflation and volatility in supply chains, continue to impact financial results and cause uncertainty and risk for the fiscal year 2022 outlook.
- Any manufacturing or supply chain disruption, inclusive of any labor shortages, whether related to illness, vaccine requirements, or other factors, could materially impact actual results.
- Changes in consumer mobility and purchasing behavior could materially impact actual results.
- Retailer inventory levels could materially impact actual results.
- Macroeconomic conditions could materially impact actual results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income