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Smucker
🇺🇸 NYSE:SJM
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Apr 30, 2023

Smucker Q4 2023 Earnings Report

Smucker's Q4 2023 results reflected a strong performance driven by consumer demand and strategic execution, with notable increases in net sales and adjusted earnings per share, partially offset by a net loss due to the divestiture of certain pet food brands.

Key Takeaways

The J.M. Smucker Co. reported a 10% increase in net sales to $2.2 billion for the fourth quarter of fiscal year 2023. Adjusted earnings per share increased by 18% to $2.64. However, the company reported a net loss per diluted share of $5.69 due to a loss related to the divestiture of certain pet food brands. The company provided fiscal year 2024 guidance, expecting comparable net sales to increase 8.5 to 9.5 percent and adjusted earnings per share to range from $9.20 to $9.60.

Net sales increased by 10% to $2.2 billion, with an 11% increase excluding divestitures and foreign currency exchange impacts.

Adjusted earnings per share rose by 18% to $2.64, while net loss per diluted share was $5.69 due to pet food brand divestiture.

Free cash flow was $298.7 million for the quarter.

Fiscal year 2024 guidance projects comparable net sales increase of 8.5% to 9.5% and adjusted earnings per share of $9.20 to $9.60.

Total Revenue
$2.24B
Previous year: $2.03B
+9.9%
EPS
$2.64
Previous year: $2.23
+18.4%
Pet Foods Profit Margin
18.5%
Previous year: 16.8%
+10.1%
Coffee Profit Margin
28.9%
Previous year: 25.4%
+13.8%
Consumer Foods Profit Margin
22.8%
Previous year: 23.9%
-4.6%
Gross Profit
$792M
Previous year: $667M
+18.9%
Cash and Equivalents
$656M
Previous year: $170M
+286.0%
Free Cash Flow
$299M
Previous year: $221M
+35.3%
Total Assets
$15B
Previous year: $16.1B
-6.6%

Smucker

Smucker

Smucker Revenue by Segment

Forward Guidance

The Company provided its full-year fiscal year 2024 guidance as summarized below: Comparable net sales are expected to increase 8.5 to 9.5 percent compared to the prior year. Adjusted earnings per share is expected to range from $9.20 to $9.60. Free cash flow is expected to be approximately $650 million with capital expenditures of $550 million.

Positive Outlook

  • Comparable net sales increase vs prior year: 8.5% to 9.5%
  • Adjusted earnings per share: $9.20 - $9.60
  • Free cash flow: $650 million
  • Favorable volume/mix from underlying business momentum
  • Higher net pricing actions

Challenges Ahead

  • Net sales are expected to decrease 10.0% to 11.0% compared to the prior year, which reflects $1.5 billion of net sales in the prior year related to the divested pet food brands.
  • Increased SD&A expenses
  • Adjusted gross profit margin range of 36.5 to 37.0 percent
  • Adjusted effective income tax rate of 24.2 percent
  • Net impact of approximately $0.60 related to stranded overhead from the divestiture of certain pet food brands

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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