The J. M. Smucker Company announced results for Q4 of its 2020 fiscal year ending April 30, 2020, and they show net sales increased USD189.9m, or 10%, compared to the fourth quarter of the previous year. The rise has been driven by increased consumer demand resulting from the COVID-19 pandemic.
Retail Consumer Foods net sales increased USD86.9 million, or 22%, with increased consumer demand related to COVID-19 stay-at-home orders contributing an estimated 22% benefit. Volume/mix contributed a 21% increase driven by growth for the Smucker’s brand, inclusive of Uncrustables frozen sandwiches and fruit spreads, as well as the Crisco and Jif brands.
For the full year, net sales were USD7.8bn, a 1% increase of comparable sales excluding acquisition, divestiture, and foreign currency exchange. For the full year, net income per diluted share was USD6.84. Adjusted earnings per share was USD8.76, an increase of 6 percent, and cash from operations stood at USD287.7m.
In terms of outlook for 2021, the company expects net sales to decline 1 to 2% and free cash flow to range from USD900 to USD950m.
“Looking ahead, we anticipate increased at-home consumption to continue during the beginning of our fiscal year 2021 – though at a more moderate rate as stock-up purchasing in the fourth quarter is not anticipated to reoccur, and significant declines for the Away From Home business are expected to persist throughout the year”, Mark Smucker, president and chief executive officer said. “We remain focused on meeting the demand needs created by the current environment, while continuing to execute against our strategic priorities to position the business for long-term growth.”