Smucker Q3 2024 Earnings Report
Key Takeaways
The J.M. Smucker Co. reported a 1% increase in net sales, with a 6% increase excluding acquisitions, divestitures, and foreign currency exchange. Adjusted earnings per share increased by 12% to $2.48. The company updated its full-year fiscal 2024 financial outlook and completed the acquisition of Hostess Brands.
Net sales increased by 1%, with a 6% increase excluding the impact of acquisitions, divestitures, and foreign currency exchange.
Adjusted earnings per share rose by 12% to $2.48.
Free cash flow was $249.6 million, compared to $442.7 million in the prior year.
The company updated its full-year fiscal 2024 financial outlook, expecting comparable net sales to increase by 8.75%.
Smucker
Smucker
Smucker Revenue by Segment
Forward Guidance
The Company updated its full-year fiscal 2024 guidance. Comparable net sales are expected to increase approximately 8.75 percent compared to the prior year. Adjusted earnings per share is expected to range from $9.45 to $9.65. Free cash flow is expected to be approximately $500.0 million with capital expenditures of $610.0 million.
Positive Outlook
- Comparable net sales increase vs prior year: 8.75%
- Adjusted earnings per share: $9.45 - $9.65
- Adjusted effective income tax rate: 24.6 %
- Underlying business momentum is expected to continue.
- Higher net pricing is expected to support sales growth.
Challenges Ahead
- Net sales are expected to decrease 3.6% compared to the prior year, including the acquisition of Hostess Brands.
- Free cash flow (in millions): $500
- Capital expenditures (in millions): $610
- Stranded overhead from the pet food divestiture will have a net unfavorable impact of approximately $0.60 on adjusted earnings per share.
- The Hostess Brands acquisition is expected to have a net unfavorable impact of approximately $0.40 on adjusted earnings per share, including incremental profits offset by incremental expenses and interest.
Revenue & Expenses
Visualization of income flow from segment revenue to net income