NYSE$SJM

JM Smucker Co · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Smucker's Q1 2023 performance reflected a strong start to the fiscal year, demonstrating operational excellence and strength of strategy.

Smucker's Q1 2023 results showed a 1% increase in net sales, with a 4% increase excluding divestitures and foreign currency exchange. Adjusted EPS decreased by 12% due to the Jif® peanut butter product recall. The company increased its full-year fiscal 2023 financial outlook for net sales, adjusted earnings per share, and free cash flow.

  • Net sales increased by 1%, or 4% excluding divestitures and foreign currency exchange.
  • Net income per diluted share was $1.03, while adjusted earnings per share was $1.67, a 12% decrease.
  • Cash used for operations was $39.0 million, and free cash flow was $(127.3) million.
  • The company increased its full-year fiscal 2023 financial outlook for net sales, adjusted earnings per share, and free cash flow.

Headline financials

Total Revenue

$1.87B

Previous: $1.86B+0.8%
EPS (adj)

$1.67

Previous: $1.90-12.1%
U.S. Retail Pet Foods Margin

16.5%

Previous: 12.3%+34.1%
Gross Margin

29.5%

Previous: 34.4%-14.2%
U.S. Retail Coffee Margin

24.4%

Previous: 27.9%-12.5%
Capital Expenditures

-$88.3M

Previous: -$68M-29.9%
Free Cash Flow

-$127M

Previous: $69.8M-282.4%
Net Income

$110M

Previous: $154M-28.7%
Operating Income

$180M

Previous: $259M-30.7%
Gross Profit

$553M

Previous: $639M-13.6%
Cash & Equivalents

$152M

Previous: $169M-10.2%
Total Assets

$16.3B

Previous: $16.2B+0.4%
Stock-Based Comp

$7.9M

Previous: $5.3M+49.1%

Revenue & EPS history

Smucker · Revenue · Quarterly

$1.87B

Q1 2023+0.8%vs Q1 2022
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Smucker · $1.56B total across 3 segments · Q1 2023

  • U.S. Retail Pet Foods
    $729M+12.5%
  • U.S. Retail Coffee
    $598M+10.1%
  • Away From Home
    $235M+1.6%

Forward guidance

The Company updated its full-year fiscal 2023 guidance. Net sales are expected to increase 4.0 to 5.0 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.20 to $8.60. Free cash flow is expected to be approximately $550 million.

Tailwinds

  • Net sales are expected to increase 4.0 to 5.0 percent compared to the prior year.
  • Excluding noncomparable net sales in the prior year for the divested private label dry pet food and natural beverage and grains businesses, net sales are expected to increase approximately 6.5 percent at the mid-point of the guidance range.
  • Adjusted earnings per share is expected to range from $8.20 to $8.60.
  • This range reflects the benefits of higher net pricing actions and shares repurchased in the prior fiscal year being more than offset by cost inflation.
  • Free cash flow is expected to be approximately $550 million.

Headwinds

  • Ongoing cost inflation continues to impact financial results and cause uncertainty and risk for the fiscal year 2023 outlook.
  • Volatility in supply chains continues to impact financial results and cause uncertainty and risk for the fiscal year 2023 outlook.
  • The overall macroeconomic environment continues to impact financial results and cause uncertainty and risk for the fiscal year 2023 outlook.
  • The Jif® peanut butter product recall will continue to impact our financial results for the fiscal year.
  • This guidance assumes an adjusted gross profit margin range of 33.5 to 34.0 percent.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.0%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.1%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+10.6%

Q4 2026

Best reaction

-11.5%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+10.6%+14.8%
Q3 2026+9.8%+5.4%-10.7%
Q2 2026-4.7%-0.1%-4.8%
Q1 2026-4.2%-0.1%-1.2%
Q4 2025+0.0%+0.3%+9.4%
Q3 2025-0.0%+0.6%+6.6%
Q2 2025+3.9%+3.7%-2.4%
Q1 2025-5.7%-5.0%+0.4%
Q4 2024+4.2%+2.4%-0.4%
Q3 2024-2.7%-2.2%+0.5%
Q2 2024+4.7%+6.1%+14.4%
Q1 2024+0.7%-0.3%-12.8%
Q4 2023-0.4%+3.1%-0.3%
Q3 2023-1.9%+1.9%+6.4%
Q2 2023+2.1%+3.5%+8.1%
Q1 2023+4.6%+2.8%+3.1%
Q4 2022+3.4%+4.2%+7.8%
Q3 2022-3.0%-0.7%+0.5%
Q2 2022+4.6%+3.6%+5.2%
Q1 2022-2.9%-2.8%-6.4%
Q4 2021+2.9%+0.7%-4.6%
Q3 2021-1.1%-0.2%+13.5%
Q2 2021+1.7%+0.4%+0.0%
Q1 2021+7.7%+5.9%-1.9%
Q4 2020-6.2%-5.4%-8.4%
Q3 2020-1.5%-0.9%-4.4%
Q2 2020+1.6%+1.9%-0.4%
Q1 2020-7.6%-6.9%-3.3%
Q4 2019-0.6%-1.7%-4.6%
Q3 2019+6.4%+4.3%+14.8%
Q2 2019-5.3%-5.4%-14.0%
Q1 2019-9.0%-9.3%-5.4%
Q4 2018-3.8%-0.6%+4.9%
Q3 2018+1.0%-1.5%+2.6%
Q2 2018+7.2%+6.6%+12.1%
Q1 2018-11.5%-11.9%-12.0%
Q4 2017-2.8%-2.0%-11.8%
Q3 2017+3.0%+2.1%+0.5%
Q2 2017-3.9%-2.3%-0.6%
Q1 2017-8.9%-11.0%-11.8%
Q4 2016+8.7%+8.6%+16.1%
Q3 2016+0.7%
Q2 2016+7.9%
Q1 2016+7.7%
Q4 2015-5.8%
Q3 2015+0.7%
Q2 2015-0.8%
Q1 2015-1.7%
Q4 2014+2.8%
Q3 2014+0.2%
Q2 2014-5.1%
Q1 2014-1.5%
Q4 2013-1.0%
Q3 2013-0.4%
Q2 2013-1.0%
Q1 2013+6.7%
Q4 2012-0.4%
Q3 2012-6.5%
Q2 2012+1.5%
Q1 2012-10.2%
Q4 2009+1.1%
Q4 2011+1.1%
Q3 2011-0.0%
Q3 2010-0.0%
Q2 2011+0.4%
Q2 2010+1.1%
Q1 2010+1.1%
Q4 2010+1.1%
Q1 2011+1.1%

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