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Jan 31, 2022
Smucker Q3 2022 Earnings Report
Smucker's Q3 2022 results reflected organic net sales growth, driven by key platforms of pet, coffee, and snacking, while navigating cost inflation and supply chain disruptions.
Key Takeaways
Smucker Co. announced Q3 2022 results with a 1% decrease in net sales, but a 4% increase excluding divestitures and foreign currency exchange. Net income per diluted share decreased by 72% due to an intangible asset impairment charge, while adjusted earnings per share decreased by 5%. The company updated its full-year fiscal 2022 financial outlook, expecting continued cost inflation and supply chain disruptions.
Net sales decreased by 1%, but increased by 4% excluding divestitures and foreign currency exchange.
Net income per diluted share decreased by 72%, primarily due to a noncash intangible asset impairment charge.
Adjusted earnings per share decreased by 5%.
Free cash flow was $322.4 million, compared to $416.6 million in the prior year.
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 2022 guidance. Net sales are expected to range from down 1.5 percent to 0.5 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.35 to $8.65. Free cash flow is expected to be approximately $700 million, with capital expenditures of $400 million.
Positive Outlook
- Net sales are expected to increase approximately 4.5 percent on a comparable basis.
- Continued double-digit net sales growth for the Smucker's® Uncrustables® brand.
- Recovery in away from home channels.
- Adjusted earnings per share is expected to range from $8.35 to $8.65.
- Free cash flow is expected to be approximately $700 million.
Challenges Ahead
- The pandemic and related implications continue to impact financial results.
- Cost inflation continues to impact financial results.
- Volatility in supply chains continues to impact financial results.
- A deceleration in at-home consumption trends is expected.
- SD&A expenses are expected to be down approximately 10 percent compared to the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income