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Oct 31, 2024
Smucker Q2 2025 Earnings Report
Smucker's second quarter performance demonstrated strength in key categories with organic net sales and earnings growth above expectations, driven by brands like Uncrustables, Meow Mix, and Café Bustelo.
Key Takeaways
The J.M. Smucker Co. reported a 17% increase in net sales to $2.3 billion, driven by the acquisition of Hostess Brands. Adjusted earnings per share increased by 7% to $2.76. The company updated its full-year fiscal 2025 financial outlook.
Net sales increased by 17% to $2.3 billion.
Net loss per diluted share was $0.23, while adjusted earnings per share was $2.76, a 7% increase.
Cash provided by operations was $404.2 million, and free cash flow was $317.2 million.
Full-year fiscal 2025 financial outlook was updated.
Smucker
Smucker
Smucker Revenue by Segment
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.com Forward Guidance
The Company updated its full-year fiscal 2025 guidance. Net sales are expected to increase 8.5% to 9.5% compared to the prior year. Adjusted earnings per share are expected to range from $9.70 to $10.10. Free cash flow is expected to be approximately $875.0 million with capital expenditures of $450.0 million.
Positive Outlook
- Net sales increase vs. prior year: 8.5% to 9.5%
- Adjusted earnings per share: $9.70 - $10.10
- Free cash flow: $875 million
- Capital expenditures: $450 million
- Adjusted effective income tax rate: 24.3%
Challenges Ahead
- Comparable net sales is expected to increase approximately 1.0 to 2.0 percent, excluding noncomparable sales.
- This 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.
- The full-year fiscal 2025 guidance does not reflect any impact related to the Company's previously announced agreement to divest the Voortman® business.
- The fiscal 2025 net sales impact is expected to be approximately $65 million and the adjusted earnings per share impact to be approximately $0.10, excluding any potential benefit from the use of proceeds from the sale.
Revenue & Expenses
Visualization of income flow from segment revenue to net income