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Coffee Service

JM Smucker boosts Q4, FY sales, suffers earnings losses

JM Smucker boosts Q4, FY sales, suffers earnings lossesImage: Adobe Stock.


J.M. Smucker Co., maker of Folgers coffee, Jif peanut butter and Milk-Bone dog treats, lifted its Q4 and FY 2023 sales, partly driven by price increases, but suffered earnings losses, according to an earnings release. Highlights include:

  • Net sales increased 10% from $2.03 billion in Q4 2022 to $2.23 billion in the quarter ending April 30, 2023, including a 1% favorable impact of lapping customer returns related to the Jif peanut butter product recall. Excluding noncomparable net sales in the prior year of $12.2 million from the divested pet food brands, as well as $7.7 million of unfavorable foreign currency exchange, net sales increased 11%.
  • Net income fell from $202.1 million to a $600.7 million loss in the comparative quarters.
  • Net income per common share fell from $1.87 to a $5.69 loss, reflecting a loss related to the divestiture of certain pet foods.
  • Adjusted EPS rose 18% to $2.42.
  • Retail coffee net sales increased 7% to $45.3 million. Higher net price realization increased net sales by 10%, primarily reflecting list price increases across the portfolio.
  • Retail consumer foods net sales increased 14% to $56.1 million, including a 5% favorable impact of lapping customer returns related to the Jif peanut butter product recall.
  • International away from home net sales increased 12% to $32.4 million.
  • For the full fiscal year, net sales rose 7% from $7.9 billion in 2022 to $8.5 billion in 2023. Net sales excluding the impact of divestitures and foreign currency exchange increased 9%.
  • For the full fiscal full year, net income fell 114% from $631.7 million to a $91.3 million loss, while EPS fell 1115% from $5.84 to an 86-cent loss.
  • Adjusted EPS was $8.92 in fiscal 2023, which was slightly ahead of the prior year.

Shares traded today at $152.66 against a 52-week range of $120.52-$163.07.

The $2.23 billion in quarterly sales beat the Zacks Consensus Estimate of $2.18 billion and the adjusted earnings of $2.64 beat the Zacks Consensus Estimate of $2.42, according to Zacks.

"Our strong fourth quarter and full-year results demonstrate the execution of our strategy and consumer demand for our brands," Mark Smucker, chair of the board, president and CEO, said in the press release. "During the quarter, we made meaningful progress in our effort to reshape our portfolio with the completion of the divestiture of certain pet food brands, while also returning significant cash to our shareholders."

The company expects comparable net sales in 2024 to increase 8.5% to 9.5% over 2023, with adjusted EPS between $9.20 and $9.50.


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