The J.M. Smucker Co Releases Q2 Financial Results

The J.M. Smucker Co. announced results for the second quarter ended October 31, 2022, of its 2023 fiscal year.

Net sales rose by USD155.1 million, or 8%. Without divestitures and currency exchange, net sales climbed by 11%. The difference between adjusted earnings per share and net income per diluted share, which decreased by 1%, was USD2.40. Operations generated USD205m in cash, an increase of 24%. Free cash flow decreased from USD105.9m to USD102.9m from the previous year. The company raised its adjusted earnings per share and net sales forecasts for the entire fiscal year 2023.

Gross profit fell by USD10.4m, or 1%. The decline is due to a decreased volume/mix contribution, the noncomparable impact of the sold natural beverage and grains businesses, and higher net price realization as well as higher commodity and ingredient, manufacturing, transportation, and packaging costs, which includes expenses for a May 2022 voluntary recall of Jif® peanut butter products. Operating income fell by USD18.4 million, or 6%, as a result of a decline in gross profit and an increase in selling, distribution, and administrative costs of USD6.6 million.

“Our second quarter results reflect the ongoing strength of our business, continued demand for our leading brands, and the ability of our team to execute with excellence,” said Mark Smucker, chair of the Board, president and chief executive officer. “We delivered organic top-line growth across all of our businesses, driven by the strength of our portfolio, and our ability to recover cost inflation and manage our supply chain environment.”

“Given our strong performance and sustained business momentum, we are raising our net sales and adjusted earnings per share expectations for this fiscal year. Looking ahead, we will continue to execute on our strategy and make investments in our key growth platforms to ensure consistent top- and bottom-line growth, continuing to position us well to deliver long-term shareholder value,” Mark Smucker added.

Gross profit fell by USD10.4m, or 1%. The decline is due to a decreased volume/mix contribution, the noncomparable impact of the sold natural beverage and grains businesses, and higher net price realization as well as higher commodity and ingredient, manufacturing, transportation, and packaging costs, which includes expenses for a May 2022 voluntary recall of Jif peanut butter products. Operating income fell by USD18.4 million, or 6%, as a result of a decline in gross profit and an increase in selling, distribution, and administrative costs of USD6.6 million.