NYSE$SJM

JM Smucker Co · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Smucker's Q4 2021 earnings reflect a decrease in net sales due to lapping consumer stock-up purchasing resulting from the COVID-19 pandemic, partially offset by continued elevated at-home consumption.

The J.M. Smucker Co. announced its Q4 2021 results, with net sales decreasing by 8% and adjusted earnings per share decreasing by 26%. However, the company exceeded expectations for net sales, adjusted earnings per share, and free cash flow, driven by sustained elevated demand for at-home food and coffee consumption.

  • Net sales decreased by 8%, but excluding divestitures and foreign currency exchange, net sales decreased by 3%.
  • Net income per diluted share for the quarter was $1.35, while adjusted earnings per share was $1.89, a decrease of 26%.
  • Cash from operations was $291.0 million, and free cash flow was $183.0 million.
  • The Company provided its fiscal 2022 outlook, with an expected net sales decrease of 2 to 3 percent, adjusted earnings per share to range from $8.70 to $9.10, and free cash flow of $900 million.

Headline financials

Total Revenue

$1.92B

Previous: $2.09B-8.2%
EPS (adj)

$1.89

Previous: $2.57-26.5%
U.S. Retail Pet Foods Margin

15.1%

Previous: 19.5%-22.6%
Sweet Baked Snacks Margin

22.6%

Previous: 27.7%-18.4%
Gross Margin

38.3%

Previous: 37.7%+1.6%
U.S. Retail Coffee Margin

29.8%

Previous: 32.7%-8.9%
Capital Expenditures

$108M

Previous: $76.4M+41.4%
Free Cash Flow

$183M

Previous: $211M-13.4%
Net Income

$147M

Previous: $226M-35.0%
Operating Income

$239M

Previous: $347M-31.2%
Gross Profit

$736M

Previous: $788M-6.7%
Cash & Equivalents

$334M

Previous: $391M-14.5%
Total Assets

$16.3B

Previous: $17B-4.0%
Stock-Based Comp

$7.8M

Previous: $7M+11.4%

Revenue & EPS history

Smucker · Revenue · Quarterly

$1.92B

Q4 2021-8.2%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Smucker · $1.5B total across 3 segments · Q4 2021

  • U.S. Retail Pet Foods
    $675M-12.1%
  • U.S. Retail Coffee
    $583M+0.3%
  • Away From Home
    $243M-7.4%

Forward guidance

The Company provided its full-year fiscal 2022 guidance with an expected net sales decrease of 2 to 3 percent, adjusted earnings per share to range from $8.70 to $9.10, and free cash flow of $900 million.

Tailwinds

  • Focus on managing elements it can control.
  • Taking necessary steps to minimize the impact of cost inflation and any business disruption.
  • Net sales are expected to increase approximately 2 percent at the mid-point of the net sales guidance range on a comparable basis.
  • Continued double-digit net sales growth for the Smucker's® Uncrustables® brand.
  • A recovery in away from home channels.

Headwinds

  • The pandemic and related implications continue to impact financial results and cause uncertainty and risk.
  • Cost inflation continues to impact financial results and cause uncertainty and risk.
  • Volatility in supply chains continues to impact financial results and cause uncertainty and risk.
  • A deceleration in at-home consumption trends.
  • Adjusted gross profit margin to range from 37.0 to 37.5 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 Q4 2021

Historical avgQ4 2021

+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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