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Apr 30, 2021
Smucker Q4 2021 Earnings Report
Smucker's Q4 2021 earnings reflect a decrease in net sales due to lapping consumer stock-up purchasing resulting from the COVID-19 pandemic, partially offset by continued elevated at-home consumption.
Key Takeaways
The J.M. Smucker Co. announced its Q4 2021 results, with net sales decreasing by 8% and adjusted earnings per share decreasing by 26%. However, the company exceeded expectations for net sales, adjusted earnings per share, and free cash flow, driven by sustained elevated demand for at-home food and coffee consumption.
Net sales decreased by 8%, but excluding divestitures and foreign currency exchange, net sales decreased by 3%.
Net income per diluted share for the quarter was $1.35, while adjusted earnings per share was $1.89, a decrease of 26%.
Cash from operations was $291.0 million, and free cash flow was $183.0 million.
The Company provided its fiscal 2022 outlook, with an expected net sales decrease of 2 to 3 percent, adjusted earnings per share to range from $8.70 to $9.10, and free cash flow of $900 million.
Revenue by Segment
Forward Guidance
The Company provided its full-year fiscal 2022 guidance with an expected net sales decrease of 2 to 3 percent, adjusted earnings per share to range from $8.70 to $9.10, and free cash flow of $900 million.
Positive Outlook
- Focus on managing elements it can control.
- Taking necessary steps to minimize the impact of cost inflation and any business disruption.
- Net sales are expected to increase approximately 2 percent at the mid-point of the net sales guidance range on a comparable basis.
- Continued double-digit net sales growth for the Smucker's® Uncrustables® brand.
- A recovery in away from home channels.
Challenges Ahead
- The pandemic and related implications continue to impact financial results and cause uncertainty and risk.
- Cost inflation continues to impact financial results and cause uncertainty and risk.
- Volatility in supply chains continues to impact financial results and cause uncertainty and risk.
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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