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Apr 30, 2020
Smucker Q4 2020 Earnings Report
Smucker's Q4 2020 earnings were driven by increased consumer demand resulting from the COVID-19 pandemic, with record-setting net sales and adjusted earnings per share.
Key Takeaways
Smucker's Q4 2020 net sales increased by 10% due to higher consumer demand from the COVID-19 pandemic. Net income per diluted share was $1.98, while adjusted earnings per share increased by 24% to $2.57. The company provided its fiscal 2021 outlook, expecting a net sales decline of 1 to 2 percent and adjusted earnings per share to range from $7.90 to $8.30.
Net sales increased by 10% due to increased consumer demand resulting from the COVID-19 pandemic.
Net income per diluted share was $1.98, with adjusted earnings per share at $2.57, a 24% increase.
Cash from operations was $287.7 million, compared to $274.2 million in the prior year.
The company anticipates increased at-home consumption to continue during the beginning of fiscal year 2021, though at a more moderate rate.
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 provided its full-year fiscal 2021 guidance as summarized below: Net sales are expected to decrease 1 to 2 percent compared to the prior year. Adjusted earnings per share is expected to range from $7.90 to $8.30. Free cash flow is expected to range from approximately $900 to $950 million.
Positive Outlook
- Focus on meeting demand needs created by the current environment.
- Continued execution against strategic priorities to position the business for long-term growth.
- Adjusted earnings per share is expected to range from $7.90 to $8.30.
- Adjusted gross profit margin of approximately 37.5 percent.
- Free cash flow is expected to range from approximately $900 to $950 million.
Challenges Ahead
- Net sales are expected to decrease 1 to 2 percent compared to the prior year.
- Decline reflects lapping the $185 million of incremental net sales in the fourth quarter of fiscal year 2020.
- An estimated $120 million COVID-related reduction to fiscal year 2021 net sales primarily resulting from a significant and extended decline in the Company's Away From Home business.
- Effective tax rate 24.0 %
- Outbreak of COVID-19 has caused significant uncertainty for fiscal year 2021 projections.
Revenue & Expenses
Visualization of income flow from segment revenue to net income