Smucker Q3 2023 Earnings Report
Key Takeaways
The J.M. Smucker Co. reported an 8% increase in net sales, with an 11% increase excluding divestitures and foreign currency exchange. Net income per diluted share was $1.95, and adjusted earnings per share decreased by 5% to $2.21. Cash from operations increased by 33%, and free cash flow was $442.7 million. The company updated its full-year fiscal 2023 financial outlook for net sales and adjusted earnings per share.
Net sales increased by 8%, or 11% excluding divestitures and foreign currency exchange.
Net income per diluted share was $1.95, with adjusted earnings per share at $2.21, a 5% decrease.
Cash provided by operations increased by 33% to $584.6 million.
Free cash flow was $442.7 million, compared to $322.4 million in the prior year.
Smucker
Smucker
Smucker Revenue by Segment
Forward Guidance
The Company updated its full-year fiscal 2023 guidance. Net sales are expected to increase approximately 6 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.55 to $8.75. Free cash flow is expected to be approximately $550 million, with capital expenditures of $550 million.
Positive Outlook
- Higher net pricing to recover cost inflation across multiple categories.
- Benefits from shares repurchased in the prior fiscal year.
- Focus on managing controllable elements to minimize impact of cost inflation.
- Commitment to enhanced prioritization and improved profitability.
- Strategic priorities supporting consistent top-and bottom-line growth.
Challenges Ahead
- Ongoing cost inflation.
- Volatility in supply chains and the overall macroeconomic environment.
- Potential impact to volume due to recent price increases.
- Unfavorable impact related to the Jif® peanut butter product recall.
- Increased SD&A expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income