ORRVILLE, Ohio, USA – The J.M. Smucker Co. yesterday announced results for the fourth quarter of its 2022 fiscal year ending April 30, 2022. Net sales rose to $2,033.8 million, up 6% on year. Net sales for U.S. Retail Coffee totalled $$647.2 million, up 11% on year. Full year net sales in U.S. Coffee rose by 5% to almost $2.5 billion.
Financial results for the fourth quarter and fiscal year reflect the divestitures of the natural beverage and grains businesses on January 31, 2022, the private label dry pet food business on December 1, 2021, the Natural Balance business on January 29, 2021, and the Crisco business on December 1, 2020.
All comparisons are to the fourth quarter of the prior fiscal year, unless otherwise noted.
Executive Summary
- Net sales increased $113.6 million, or 6 percent. Net sales excluding the impact of divestitures and foreign currency exchange increased 9 percent.
- For the full year, net sales were $8.0 billion, in-line with the prior year. Net sales excluding the impact of divestitures and foreign currency exchange increased 5 percent.
- Net income per diluted share for the quarter was $1.87. Adjusted earnings per share was $2.23, an increase of 18 percent.
- For the full year, net income per diluted share was $5.83. Adjusted earnings per share was $8.88, a decrease of 3 percent.
- Cash from operations was $393.7 million compared to $291.0 million in the prior year. Free cash flow was $220.7 million in the quarter and $718.8 million for the full year.
- Return of capital to shareholders, reflecting cash dividends and share repurchases, was $369.7 million in the quarter and $688.5 million for the full year.
- The Company provided its fiscal year 2023 outlook, with an expected net sales increase of 3.5 to 4.5 percent, adjusted earnings per share to range from $7.85 to $8.25, and free cash flow of $500 million.
- Guidance reflects an estimated unfavorable impact to sales of 2 percent and adjusted earnings per share of $0.90 related to the recall of certain Jif® peanut butter products.
U.S. Retail Coffee
Net sales increased $64.1 million, or 11 percent. Higher net price realization increased net sales by 17 percentage points, primarily reflecting list price increases across the portfolio. A reduced contribution from volume/mix decreased net sales by 6 percentage points, primarily driven by the Folgers and Dunkin’ brands.
Segment profit decreased $9.5 million, primarily reflecting a decreased contribution from volume/mix, partially offset by the net impact of higher net price realization and increased commodity costs.
The J.M. Smucker Co.: Chief Executive Officer remarks
“Our fourth quarter and full-year results demonstrate the continued execution of our strategy and momentum of the business, amid a challenging and dynamic environment. Our strong financial results reflect sustained consumer demand for at-home food and coffee and consumers’ desire for our trusted and iconic brands,” said Mark Smucker, President and Chief Executive Officer. “During the year, we also made significant progress in strengthening our financial position, as we reduced our debt balance, while also returning cash to our shareholders through dividends and share repurchases.”
“Looking ahead to fiscal year 2023, we are focused on continuing the momentum of the business, investing in growth focused platforms such as Uncrustables®, partnering with retailers to restock Jif® products following the recent recall, and supporting our talented employees who are instrumental to our success. With strong underlying momentum across our portfolio of brands, we remain confident in our ability to execute our strategic priorities and support long-term shareholder value creation.”
