Jan 31, 2020

Smucker Q3 2020 Earnings Report

Smucker's third quarter results were in line with expectations, benefiting from strategic investments and decisive actions to improve business areas.

Key Takeaways

Smucker Company announced its Q3 2020 results with net sales decreasing by 2 percent, primarily due to declines in the U.S. Retail Pet Foods segment. Adjusted earnings per share increased by 4 percent, and free cash flow was strong at $465.1 million. The company reaffirmed its full-year fiscal 2020 outlook for net sales, adjusted earnings per share, and free cash flow.

Net sales decreased by 2 percent, mainly due to anticipated declines in the U.S. Retail Pet Foods segment.

Net income per diluted share was $1.64, while adjusted earnings per share increased by 4 percent to $2.35.

Cash from operations increased by 24 percent to $521.6 million.

Free cash flow for the quarter was $465.1 million, compared to $333.0 million in the prior year.

Total Revenue
$1.97B
Previous year: $2.01B
-2.0%
EPS
$2.35
Previous year: $2.26
+4.0%
Pet Foods Profit Margin
20.2%
Previous year: 19.5%
+3.6%
Coffee Profit Margin
33.9%
Previous year: 32.7%
+3.7%
Consumer Foods Profit Margin
19.9%
Previous year: 22.7%
-12.3%
Gross Profit
$760M
Previous year: $774M
-1.8%
Cash and Equivalents
$74.4M
Previous year: $207M
-64.0%
Free Cash Flow
$465M
Previous year: $333M
+39.7%
Total Assets
$16.6B
Previous year: $16.9B
-1.7%

Smucker

Smucker

Smucker Revenue by Segment

Forward Guidance

The Company reaffirmed its full-year fiscal 2020 net sales, adjusted earnings per share, and free cash flow guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income