J.M. Smucker Co. announces fiscal 2021 Q4 results; net sales drop 8%

The J.M. Smucker Co. (NYSE: SJM) on June announced results for the fourth quarter of its 2021 fiscal year, ended April 30, 2021. Net sales decreased 8%. Excluding non-comparable net sales of $123.9 million for the divested Crisco and Natural Balance businesses, as well as $8.3 million of favorable foreign currency exchange, net sales decreased $56.2 million, or 3%.

KEY POINTS

• Net sales decreased $171.8 million, or 8%. Net sales excluding divestitures and foreign currency exchange decreased 3%, driven by lapping consumer stock-up purchasing resulting from the COVID-19 pandemic in the prior year, partially offset by continued elevated at-home consumption.
  
• For the full year, net sales were $8 billion, an increase of 3%. Net sales excluding divestitures and foreign currency exchange increased 5%.
• Net income per diluted share for the quarter was $1.35. Adjusted earnings per share was $1.89, a decrease of 26%.
• For the full year, net income per diluted share was $7.79. Adjusted earnings per share was $9.12, an increase of 4%.
• Cash from operations was $291 million compared to $287.7 million in the prior year. Free cash flow was $183 million in the quarter and $1,258.3 million for the full year.
• Return of capital to shareholders, including cash dividends and share repurchases, was $272.7 million in the quarter and $1.1 billion for the full year.
• The company provided its fiscal 2022 outlook, with an expected net sales decrease of 2% to 3%, adjusted earnings per share to range from $8.70 to $9.10, and free cash flow of $900 million.

"Our fourth quarter and full-year results demonstrate the continued execution of our strategy, as we delivered net sales, adjusted earnings per share, and free cash flow above our expectations, with significant investment in our brands and gaining market share in several of our key categories," said Mark Smucker, president and chief executive.

"Strong financial results reflect sustained elevated demand for at-home food and coffee consumption and consumers' desire for our trusted and iconic brands,"  Smucker added. "Fiscal year 2021 marked another year of progress strengthening our financial position, with earnings growth and cash generation enabling debt reduction and return of cash to our shareholders."

Smucker food and coffee brands include Folgers, Jif and Milk-Bone, and new lines like Café Bustelo, Smucker's Uncrustables and Rachael Ray Nutrish. The Dunkin' brand is licensed to J.M. Smucker Co. for packaged coffee products.