Q1 2025 J M Smucker Co Earnings Call (Pre-recorded) Transcript
Key Points
- JM Smucker Co (SJM) reported double-digit sales and earnings growth for the first quarter of fiscal 2025.
- Uncrustables sandwiches saw a 24% increase in net sales, driven by national advertising, distribution gains, and new merchandising investments.
- The Café Bustelo brand continues to perform strongly, with double-digit net sales growth in 11 of the last 12 quarters.
- The integration of Hostess Brands is progressing well, with cost synergies being realized earlier than anticipated.
- The company remains confident in achieving its long-term objective of generating at least $1 billion in free cash flow annually.
- The Sweet Baked Snacks segment delivered net sales below expectations, primarily due to the macro-economic environment and slowdown in the convenience channel.
- Inflationary pressures and diminished discretionary income are impacting consumer spending, particularly in the dog snacks and sweet baked goods categories.
- The coffee segment is experiencing meaningful commodity volatility and inflation, leading to price increases.
- Net interest expense increased significantly due to the senior notes issued for the Hostess Brands acquisition and increased short-term borrowings.
- The company has revised its full-year net sales expectations downward due to the dynamic consumer environment and higher green coffee costs.
Good morning. This is Crystal Beiting, Vice President, Investor Relations and Financial Planning and Analysis for The J.M. Smucker Company. Thank you for listening to our prepared remarks on our fiscal 2025 first quarter earnings.
After this brief introduction, Mark Smucker, Chair of the Board, President and Chief Executive Officer, will give an overview of the quarter's results and an update on strategic initiatives. Tucker Marshall, Chief Financial Officer, will then provide a detailed analysis of the financial results and our updated fiscal 2025 outlook.
Later this morning, we will hold a separate live question and answer webcast. During today's discussion, we will make forward-looking statements that reflect our current expectations about future plans and performance.
These statements rely on assumptions and estimates, and actual results may differ materially due to risks and uncertainties. Additionally, please note we will refer to non-GAAP financial measures
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