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Apr 30, 2024
Smucker Q4 2024 Earnings Report
Smucker's Q4 2024 financial results reflected a mix of divestitures, acquisitions, and organic growth, with net sales showing a slight decrease but adjusted EPS increasing by 1%.
Key Takeaways
The J.M. Smucker Co. reported Q4 net sales of $2.2 billion, a 1% decrease year-over-year, but a 3% increase excluding acquisitions, divestitures, and foreign currency exchange. Net income per diluted share was $2.30, while adjusted EPS was $2.66, a 1% increase. The company provided FY25 outlook, expecting net sales to increase 9.5-10.5% and adjusted EPS to range from $9.80 to $10.20.
Net sales for the quarter were $2.2 billion, a decrease of 1 percent, but increased 3 percent excluding the acquisition, divestitures, and foreign currency exchange.
Net income per diluted share for the quarter was $2.30, with adjusted earnings per share at $2.66, a 1 percent increase.
Cash provided by operations for the quarter was $428.1 million, and free cash flow was $297.5 million.
The company's fiscal year 2025 outlook includes net sales expected to increase 9.5 to 10.5 percent and adjusted earnings per share to range from $9.80 to $10.20.
Smucker
Smucker
Smucker Revenue by Segment
Smucker Revenue by Geographic Location
Revenue by Segment
U.S. Retail Coffee Revenue
CapyFin.comFrozen Handheld & Spreads Revenue
CapyFin.comU.S. Retail Pet Foods Revenue
CapyFin.comSweet Baked Snacks Revenue
CapyFin.comInternational & AFH Revenue
CapyFin.comRevenue by Geographic Location
Total Revenue
CapyFin.com Forward Guidance
The Company provided its full-year fiscal year 2025 guidance with net sales expected to increase 9.5 to 10.5 percent, adjusted earnings per share to range from $9.80 to $10.20, and free cash flow of $900.0 million.
Positive Outlook
- Net sales are expected to increase 9.5 to 10.5 percent, reflecting a full-year of net sales from the Hostess Brands acquisition, as well as favorable volume/mix and higher net price realization.
- Comparable net sales are expected to increase approximately 1.5 to 2.5 percent, which excludes noncomparable sales in the current year from the acquisition of Hostess Brands and noncomparable sales in the prior year related to the divestitures of the Sahale Snacks® business and the Canada condiment business.
- Adjusted earnings per share is expected to range from $9.80 to $10.20.
- This guidance reflects the increase in net sales, adjusted gross profit margin of approximately 38.0 percent, an increase of SD&A expenses of approximately 13.0 percent, interest expense of $400.0 million, an adjusted effective income tax rate of 24.4 percent, and 106.4 million weighted-average common shares outstanding.
- Free cash flow is expected to be approximately $900.0 million with capital expenditures of $450.0 million.
Challenges Ahead
- This guidance also reflects a decline of approximately $85.0 million of contract manufacturing sales related to the divested pet food brands.
- Increase of SD&A expenses of approximately 13.0 percent.
- Interest expense of $400.0 million.
- Adjusted effective income tax rate of 24.4 percent.
- Capital expenditures of $450.0 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income