November 24, 2020
The J.M. Smucker Co. Announces Fiscal 2021 Second Quarter Results
The J.M. Smucker Co. today announced results for the second quarter ended October 31, 2020, of its 2021 fiscal year. All comparisons are to the second quarter of the prior fiscal year, unless otherwise noted.
EXECUTIVE SUMMARY
Net sales increased $76.2 million, or 4 percent, primarily reflecting growth in the Company’s U.S. Retail Consumer Foods and U.S. Retail Coffee segments, partially offset by a decline in its Away From Home business.
Net income per diluted share was $2.02. Adjusted earnings per share was $2.39, an increase of 6 percent.
Cash from operations was $378.7 million, an increase of 69 percent. Free cash flow was $326.3 million, compared to $160.6 million in the prior year.
The Company increased its full-year fiscal 2021 net sales, adjusted earnings per share, and free cash flow outlook.
CHIEF EXECUTIVE OFFICER REMARKS
“In the second quarter, we focused on meeting the demands created by the current environment, while continuing to execute our long-term strategy to deliver sustainable growth,” said Mark Smucker, President and Chief Executive Officer. “Our U.S. Retail Consumer Foods and U.S. Retail Coffee businesses experienced strong sales momentum from elevated at-home consumption trends and grew market share. I want to thank our employees for their ongoing hard work and dedication to provide our customers, consumers, and their pets with a steady food supply from trusted and iconic brands.”
“We are pleased to raise our full-year financial guidance, while making additional investments in our brands to support their momentum. I am confident that we are strengthening our foundation to deliver both our short-term and long-term financial objectives and increase shareholder value.”
SECOND QUARTER CONSOLIDATED RESULTS
| Three Months Ended October 31, | ||||||||
| 2020 | 2019 | % Increase (Decrease) |
||||||
| (Dollars and shares in millions, except per share data) | ||||||||
| Net sales | $2,034.0 | $1,957.8 | 4 | % | ||||
| Operating income | $380.8 | $329.8 | 15 | % | ||||
| Adjusted operating income | 408.8 | 391.0 | 5 | % | ||||
| Net income per common share – assuming dilution | $2.02 | $1.85 | 9 | % | ||||
| Adjusted earnings per share – assuming dilution | 2.39 | 2.26 | 6 | % | ||||
| Weighted-average shares outstanding – assuming dilution | 114.2 | 114.1 | — | |||||
Net Sales
Net sales increased 4 percent, primarily due to favorable volume/mix for the Company’s U.S. Retail Coffee and U.S. Retail Consumer Foods segments, reflecting elevated at-home consumption, partially offset by reduced volume/mix for its Away From Home operating segment. Net price realization and foreign currency exchange were neutral.
For more information, visit the company’s official press release.