On June 6, 2024, JM Smucker Co (SJM, Financial) released its 8-K filing announcing the results for the fourth quarter of its fiscal year ending April 30, 2024. The company reported a net income per diluted share of $2.30 and adjusted earnings per share of $2.66, surpassing the analyst estimate of $2.10. However, net sales for the quarter were $2.2 billion, slightly below the estimated $2.24 billion.
Company Overview
JM Smucker Co (SJM, Financial) is a leading packaged food company primarily operating through the US retail channel, which accounts for 77% of its forecasted fiscal 2024 revenue. The company’s portfolio includes well-known brands such as Folgers, Dunkin', Milk-Bone, Meow Mix, Jif, and Smucker's. In fiscal 2024, JM Smucker Co acquired Hostess Brands to enhance its presence in the snack and convenience store segment.
Performance and Challenges
For the fourth quarter, JM Smucker Co reported net sales of $2.2 billion, a decrease of 1% compared to the same period last year. The decline was primarily due to the divestiture of several businesses, including the Canada condiment business and certain pet food brands. Excluding these divestitures and the acquisition of Hostess Brands, net sales increased by 3%. The company’s net income per diluted share was $2.30, with adjusted earnings per share at $2.66, reflecting a 1% increase.
Financial Achievements
Despite the challenges, JM Smucker Co achieved significant financial milestones. For the fiscal year, net sales were $8.2 billion, a decrease of 4%, but excluding divestitures and acquisitions, net sales increased by 8%. The company reported a net income per diluted share of $7.13 and adjusted earnings per share of $9.94, an 11% increase. Cash provided by operations for the quarter was $428.1 million, and free cash flow was $297.5 million.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | % Change |
|---|---|---|---|
| Net Sales | $2.21 billion | $2.23 billion | -1% |
| Operating Income | $406.0 million | ($633.5 million) | n/m |
| Adjusted Operating Income | $461.6 million | $408.2 million | 13% |
| Net Income per Diluted Share | $2.30 | ($5.69) | 140% |
| Adjusted EPS | $2.66 | $2.64 | 1% |
Balance Sheet and Cash Flow
JM Smucker Co reported cash provided by operating activities of $428.1 million for the quarter, compared to $443.8 million in the prior year. Free cash flow was $297.5 million for the quarter and $642.9 million for the fiscal year. The company returned $112.0 million to shareholders through dividends in the quarter and $437.5 million for the fiscal year.
CEO Commentary
"Our fourth quarter and full-year results underscore the strength of our business and the demand for our leading brands. Our focus on superior execution and disciplined cost management helped drive our strong results in a dynamic operating environment,” said Mark Smucker, Chair of the Board, President and Chief Executive Officer. "Our transformed portfolio, including the acquisition of Hostess Brands during the fiscal year, has strengthened our business for long-term profitable growth across our key platforms of coffee, Uncrustables® frozen sandwiches, dog snacks and cat food, and sweet baked snacks."
Outlook for Fiscal Year 2025
Looking ahead, JM Smucker Co provided its fiscal year 2025 outlook, expecting net sales to increase by 9.5% to 10.5%, adjusted earnings per share to range from $9.80 to $10.20, and free cash flow of $900 million. The company plans to invest in its brands, capabilities, and employees to drive long-term growth and increase shareholder value.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from JM Smucker Co for further details.
