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Smucker
🇺🇸 NYSE:SJM
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•
Jan 31, 2021

Smucker Q3 2021 Earnings Report

Smucker's Q3 2021 earnings showcased strong financial results, driven by growth in U.S. and International retail businesses and strategic portfolio focus.

Key Takeaways

Smucker Co. reported a 5% increase in net sales, with a 7% increase excluding divested businesses and foreign currency exchange. Adjusted earnings per share increased by 4%. The company also increased its full-year fiscal 2021 net sales, adjusted earnings per share, and free cash flow outlook.

Net sales increased by 5%, driven by growth in U.S. and International retail businesses.

Adjusted earnings per share increased by 4% to $2.45.

Free cash flow was $416.6 million, compared to $465.1 million in the prior year.

The company increased its full-year fiscal 2021 net sales, adjusted earnings per share, and free cash flow outlook.

Total Revenue
$2.08B
Previous year: $1.97B
+5.3%
EPS
$2.45
Previous year: $2.35
+4.3%
Pet Foods Profit Margin
17.6%
Previous year: 20.2%
-12.9%
Coffee Profit Margin
33.7%
Previous year: 33.9%
-0.6%
Consumer Foods Profit Margin
24.8%
Previous year: 19.9%
+24.6%
Gross Profit
$809M
Previous year: $760M
+6.5%
Cash and Equivalents
$502M
Previous year: $74.4M
+574.1%
Free Cash Flow
$417M
Previous year: $465M
-10.4%
Total Assets
$16.4B
Previous year: $16.6B
-1.2%

Smucker

Smucker

Smucker Revenue by Segment

Forward Guidance

The Company updated its full-year fiscal 2021 guidance. Net sales are expected to increase approximately 2 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.70 to $8.90. Free cash flow is expected to approximate $1.1 billion, with capital expenditures of $300 million.

Positive Outlook

  • Net sales are expected to increase approximately 2 percent compared to the prior year.
  • Elevated at-home consumption benefiting the U.S. Retail Coffee and U.S. Retail Consumer Foods segments.
  • Adjusted earnings per share is expected to range from $8.70 to $8.90, based on 112.6 million shares outstanding.
  • Gross profit margin of approximately 38.0 percent.
  • Free cash flow is expected to approximate $1.1 billion, with capital expenditures of $300 million.

Challenges Ahead

  • COVID-19 pandemic continues to impact financial results and cause uncertainty for the full-year fiscal 2021 outlook.
  • Net sales guidance also reflects a decline for the Company's Away From Home business.
  • The lapping of a $185 million incremental benefit to net sales related to COVID-19 in the fourth quarter of the prior year.
  • $166 million of noncomparable sales in the prior year from the divested businesses.
  • SD&A expenses to increase 3 to 4 percent compared to the prior year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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