NYSE$SJM

JM Smucker Co · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Smucker's Q2 2024 performance reflected continued demand and strategic portfolio reshaping.

Smucker Co. reported a net sales decrease of 12%, but net sales excluding divestiture and foreign currency exchange increased by 7%. Adjusted earnings per share increased by 8% to $2.59. The company updated its full-year fiscal 2024 financial outlook to reflect the acquisition of Hostess Brands, Inc.

  • Net sales decreased by 12%, but increased 7% excluding divestiture and foreign currency exchange.
  • Net income per diluted share was $1.90, with adjusted earnings per share at $2.59, an 8% increase.
  • Cash provided by operations was $176.9 million, while free cash flow was $28.2 million.
  • Full-year fiscal 2024 financial outlook updated to include Hostess Brands acquisition.

Headline financials

Total Revenue

$1.94B

Previous: $2.21B-12.1%
EPS (adj)

$2.59

Previous: $2.40+7.9%
U.S. Retail Pet Foods Margin

20.9%

Previous: 15.7%+33.1%
Sweet Baked Snacks Margin

27.7%

No prior period
Gross Margin

37.4%

Previous: 31.8%+17.6%
U.S. Retail Coffee Margin

24.9%

Previous: 26.4%-5.7%
Capital Expenditures

-$299M

Previous: -$190M-57.0%
Free Cash Flow

$95.8M

Previous: -$24.4M+492.6%
Net Income

$195M

Previous: $191M+2.0%
Operating Income

$299M

Previous: $293M+1.9%
Gross Profit

$724M

Previous: $701M+3.3%
Cash & Equivalents

$3.62B

Previous: $27.1M+13272.3%
Total Assets

$18.1B

Previous: $16.2B+11.7%
Stock-Based Comp

$8.6M

Previous: -$2.6M+430.8%

Revenue & EPS history

Smucker · Revenue · Quarterly

$1.94B

Q2 2024-12.1%vs Q2 2023
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Smucker · $1.47B total across 3 segments · Q2 2024

  • U.S. Retail Coffee
    $686M-3.4%
  • U.S. Retail Pet Foods
    $464M-39.4%
  • Away From Home
    $325M+9.0%

Forward guidance

The Company updated its full-year fiscal 2024 guidance, which reflects the anticipated impact of the acquisition of Hostess Brands:

Tailwinds

  • Comparable net sales increase vs prior year: 8.5% - 9.0%
  • Adjusted earnings per share: $9.25 - $9.65
  • The adjusted earnings per share range reflects the benefits of favorable volume/mix and higher net pricing actions, partially offset by increased SD&A expenses.
  • This guidance assumes an adjusted gross profit margin of approximately 37.5 percent.
  • This guidance assumes 104.4 million weighted-average common shares outstanding, inclusive of the effect of the Hostess Brands acquisition.

Headwinds

  • Net sales are expected to decrease 3.0% to 3.5% compared to the prior year.
  • Free cash flow (in millions): $530
  • Capital expenditures (in millions): $610
  • Adjusted effective income tax rate: 24.3 %
  • The adjusted earnings per share range also reflects a net unfavorable impact of approximately $0.60 related to stranded overhead from the pet food divestiture, inclusive of income and reimbursements from transition services and contract manufacturing agreements.

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 Q2 2024

Historical avgQ2 2024

+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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