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Oct 31, 2023
Smucker Q2 2024 Earnings Report
Smucker's Q2 2024 performance reflected continued demand and strategic portfolio reshaping.
Key Takeaways
Smucker Co. reported a net sales decrease of 12%, but net sales excluding divestiture and foreign currency exchange increased by 7%. Adjusted earnings per share increased by 8% to $2.59. The company updated its full-year fiscal 2024 financial outlook to reflect the acquisition of Hostess Brands, Inc.
Net sales decreased by 12%, but increased 7% excluding divestiture and foreign currency exchange.
Net income per diluted share was $1.90, with adjusted earnings per share at $2.59, an 8% increase.
Cash provided by operations was $176.9 million, while free cash flow was $28.2 million.
Full-year fiscal 2024 financial outlook updated to include Hostess Brands acquisition.
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 2024 guidance, which reflects the anticipated impact of the acquisition of Hostess Brands:
Positive Outlook
- Comparable net sales increase vs prior year: 8.5% - 9.0%
- Adjusted earnings per share: $9.25 - $9.65
- The adjusted earnings per share range reflects the benefits of favorable volume/mix and higher net pricing actions, partially offset by increased SD&A expenses.
- This guidance assumes an adjusted gross profit margin of approximately 37.5 percent.
- This guidance assumes 104.4 million weighted-average common shares outstanding, inclusive of the effect of the Hostess Brands acquisition.
Challenges Ahead
- Net sales are expected to decrease 3.0% to 3.5% compared to the prior year.
- Free cash flow (in millions): $530
- Capital expenditures (in millions): $610
- Adjusted effective income tax rate: 24.3 %
- The adjusted earnings per share range also reflects a net unfavorable impact of approximately $0.60 related to stranded overhead from the pet food divestiture, inclusive of income and reimbursements from transition services and contract manufacturing agreements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income