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Jan 31, 2025
Smucker Q3 2025 Earnings Report
Smucker reported a 2% decline in net sales and a net loss of $6.22 per share in Q3 FY25 due to impairment charges.
Key Takeaways
The J.M. Smucker Co. reported a 2% decline in net sales for Q3 FY25, primarily due to supply chain disruptions and lower volume/mix. The company posted a net loss per diluted share of $6.22, reflecting significant impairment charges related to the Sweet Baked Snacks reporting unit. Adjusted EPS increased by 5% to $2.61. Free cash flow declined to $151.3 million, compared to $249.6 million in the prior year.
Net sales decreased 2% to $2.19 billion, impacted by supply chain disruptions.
Reported net loss of $6.22 per share due to impairment charges.
Adjusted EPS increased 5% to $2.61, driven by disciplined cost management.
Free cash flow fell to $151.3 million from $249.6 million in the prior year.
Revenue by Segment
Forward Guidance
Smucker expects full-year net sales to increase by 7.25% and adjusted EPS to range from $9.85 to $10.15. Free cash flow is projected at $925 million, with capital expenditures of $400 million.
Positive Outlook
- Net sales expected to grow by 7.25% compared to FY24.
- Adjusted EPS guidance raised to a range of $9.85 to $10.15.
- Free cash flow expected to reach $925 million for FY25.
- Continued cost management and synergies from Hostess acquisition.
- Stabilization in supply chain disruptions anticipated in the next quarters.
Challenges Ahead
- Sweet Baked Snacks segment remains under pressure from volume declines.
- Lower-than-expected pet food sales continue to be a headwind.
- Higher marketing and SG&A expenses expected in upcoming quarters.
- Foreign exchange fluctuations could impact international sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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