NYSE$SJM

JM Smucker Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Smucker's Q3 2023 earnings reflected strong business momentum, supported by robust demand and focus on execution.

The J.M. Smucker Co. reported an 8% increase in net sales, with an 11% increase excluding divestitures and foreign currency exchange. Net income per diluted share was $1.95, and adjusted earnings per share decreased by 5% to $2.21. Cash from operations increased by 33%, and free cash flow was $442.7 million. The company updated its full-year fiscal 2023 financial outlook for net sales and adjusted earnings per share.

  • Net sales increased by 8%, or 11% excluding divestitures and foreign currency exchange.
  • Net income per diluted share was $1.95, with adjusted earnings per share at $2.21, a 5% decrease.
  • Cash provided by operations increased by 33% to $584.6 million.
  • Free cash flow was $442.7 million, compared to $322.4 million in the prior year.

Headline financials

Total Revenue

$2.22B

Previous: $2.06B+7.7%
EPS (adj)

$2.21

Previous: $2.33-5.2%
U.S. Retail Pet Foods Margin

14.4%

Previous: 13.7%+5.1%
Gross Margin

34.1%

Previous: 33.2%+2.7%
U.S. Retail Coffee Margin

27.8%

Previous: 32.2%-13.7%
Capital Expenditures

-$332M

Previous: -$245M-35.9%
Free Cash Flow

$418M

Previous: $498M-16.0%
Net Income

$209M

Previous: $69.7M+199.1%
Operating Income

$318M

Previous: $151M+111.1%
Gross Profit

$756M

Previous: $683M+10.6%
Cash & Equivalents

$104M

Previous: $284M-63.3%
Total Assets

$16B

Previous: $16B+0.3%
Stock-Based Comp

$6M

Previous: $4.6M+30.4%

Revenue & EPS history

Smucker · Revenue · Quarterly

$2.22B

Q3 2023+7.7%vs Q3 2022
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Smucker · $1.78B total across 3 segments · Q3 2023

  • U.S. Retail Pet Foods
    $759M+8.9%
  • U.S. Retail Coffee
    $735M+11.1%
  • Away From Home
    $288M+8.6%

Forward guidance

The Company updated its full-year fiscal 2023 guidance. Net sales are expected to increase approximately 6 percent compared to the prior year. Adjusted earnings per share is expected to range from $8.55 to $8.75. Free cash flow is expected to be approximately $550 million, with capital expenditures of $550 million.

Tailwinds

  • Higher net pricing to recover cost inflation across multiple categories.
  • Benefits from shares repurchased in the prior fiscal year.
  • Focus on managing controllable elements to minimize impact of cost inflation.
  • Commitment to enhanced prioritization and improved profitability.
  • Strategic priorities supporting consistent top-and bottom-line growth.

Headwinds

  • Ongoing cost inflation.
  • Volatility in supply chains and the overall macroeconomic environment.
  • Potential impact to volume due to recent price increases.
  • Unfavorable impact related to the Jif® peanut butter product recall.
  • Increased SD&A expenses.

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 Q3 2023

Historical avgQ3 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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