NYSE$SJM

JM Smucker Co · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Smucker's financial performance reflected sustained consumer demand for at-home food and coffee, and the company demonstrated continued execution of its strategy amid a challenging environment.

Smucker Co. reported a 6% increase in net sales for the fourth quarter of fiscal year 2022. Net income per diluted share was $1.87, while adjusted earnings per share increased by 18% to $2.23. The company provided its fiscal year 2023 outlook, with an expected net sales increase of 3.5 to 4.5 percent and adjusted earnings per share to range from $7.85 to $8.25.

  • Net sales increased by 6 percent, or 9 percent excluding the impact of divestitures and foreign currency exchange.
  • Net income per diluted share for the quarter was $1.87, with adjusted earnings per share at $2.23, an 18 percent increase.
  • Cash from operations was $393.7 million, and free cash flow was $220.7 million for the quarter.
  • The company expects a net sales increase of 3.5 to 4.5 percent for fiscal year 2023.

Headline financials

Total Revenue

$2.03B

Previous: $1.92B+5.9%
EPS (adj)

$2.23

Previous: $1.89+18.0%
U.S. Retail Pet Foods Margin

16.8%

Previous: 15.1%+11.3%
Sweet Baked Snacks Margin

23.9%

Previous: 22.6%+5.8%
Gross Margin

32.8%

Previous: 38.3%-14.4%
U.S. Retail Coffee Margin

25.4%

Previous: 29.8%-14.8%
Capital Expenditures

$173M

Previous: $108M+60.2%
Free Cash Flow

$221M

Previous: $183M+20.6%
Net Income

$202M

Previous: $147M+37.5%
Operating Income

$302M

Previous: $239M+26.5%
Gross Profit

$667M

Previous: $736M-9.4%
Cash & Equivalents

$170M

Previous: $334M-49.2%
Total Assets

$16.1B

Previous: $16.3B-1.4%
Stock-Based Comp

$7.1M

Previous: $7.8M-9.0%

Revenue & EPS history

Smucker · Revenue · Quarterly

$2.03B

Q4 2022+5.9%vs Q4 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Smucker · $1.64B total across 3 segments · Q4 2022

  • U.S. Retail Pet Foods
    $718M+6.4%
  • U.S. Retail Coffee
    $647M+11.0%
  • Away From Home
    $271M+11.7%

Forward guidance

The Company provided its full-year fiscal year 2023 guidance. Net sales are expected to increase 3.5% - 4.5%. Adjusted earnings per share is expected to range from $7.85 - $8.25. Free cash flow is expected to be approximately $500 million.

Tailwinds

  • Net sales are expected to increase 3.5 to 4.5 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 percent at the mid-point of the guidance range.
  • This reflects higher net pricing to recover cost inflation across multiple categories.
  • Adjusted earnings per share is expected to range from $7.85 to $8.25, including a $0.90 estimated unfavorable impact related to the Jif® peanut butter product recall.
  • Free cash flow is expected to be approximately $500 million, inclusive of the estimated unfavorable impact related to the Jif® peanut butter product recall, with capital expenditures of $550 million.

Headwinds

  • 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.
  • The pandemic and its related implications, along with ongoing cost inflation and volatility in supply chains, continue to impact financial results and cause uncertainty and risk for the fiscal year 2023 outlook.
  • This range reflects the benefits of higher net pricing actions and shares repurchased in the prior year being more than offset by cost inflation, the anticipated volume/mix impact of price elasticity of demand, the unfavorable impact of the Jif® peanut butter product recall, and increased SD&A expenses.
  • This guidance assumes an adjusted gross profit margin range of 33.0 to 34.0 percent, including a 1 percent estimated unfavorable impact related to the Jif® peanut butter product recall.
  • This guidance assumes an adjusted effective income tax rate of 24.2 percent, and 106.5 million common shares outstanding.

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 2022

Historical avgQ4 2022

+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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