Smucker Q2 2025 Earnings Report
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
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