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Smucker
🇺🇸 NYSE:SJM
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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.

Total Revenue
$2.09B
Previous year: $1.9B
+10.0%
EPS
$2.57
Previous year: $2.08
+23.6%
Pet Foods Profit Margin
19.5%
Previous year: 18.2%
+7.1%
Coffee Profit Margin
32.7%
Previous year: 32.4%
+0.9%
Consumer Foods Profit Margin
27.7%
Previous year: 20%
+38.5%
Gross Profit
$788M
Previous year: $692M
+13.9%
Cash and Equivalents
$391M
Previous year: $101M
+286.1%
Free Cash Flow
$211M
Previous year: $182M
+16.4%
Total Assets
$17B
Previous year: $16.7B
+1.6%

Smucker

Smucker

Smucker Revenue by Segment

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

Company Overview

Full financial data and analysis

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