The J.M. Smucker Co. announced results for the second quarter ended October 31, 2021, of its 2022 fiscal year. Financial results for the second quarter of fiscal year 2022 reflect the divestiture of the Crisco business on December 1, 2020, and the divestiture of the Natural Balance business on January 29, 2021, according to a press release.
Net sales increased USD16m, or 1%. Net sales excluding divestitures and foreign currency exchange increased 8%. Cash from operations was USD165.1m, a decrease of 56%. Free cash flow was USD105.9m, compared to USD326.3m in the prior year.
Gross profit decreased USD106.7m, or 13%, reflecting higher costs, primarily driven by increased commodity, manufacturing, transportation, and packaging costs, and the noncomparable impact of the Crisco and Natural Balance divestitures, partially offset by increased pricing and favorable volume/mix. Operating income decreased USD69.0m, or 18%, primarily driven by the decrease in gross profit, partially offset by a USD35.1m decrease in selling, distribution, and administrative expenses.
“Our second quarter results, including comparable net sales growth of 8 percent, exceeded our expectations and demonstrated sustained momentum for our business and strong execution by our talented employees in what remains a dynamic operating environment,” Mark Smucker, president and Chief Executive Officer said. “We delivered robust organic top-line growth across each of our segments, reflecting consumers’ continued desire for our brands and the successful implementation of initial pricing actions. We are pleased with our ability to increase our net sales and adjusted earnings per share expectations for the fiscal year despite increasing cost inflation and continued supply chain disruption. We remain confident that the actions we are taking to execute our strategy are positioning us to deliver sustainable growth and create shareholder value over the long term.”