The J.M. Smucker Co. Announces Fiscal 2024 First Quarter Results.

ORRVILLE, Ohio: The J.M. Smucker Co. (NYSE: SJM) today announced results for the first quarter ended July 31, 2023, of its 2024 fiscal year. Financial results for the first quarter of fiscal year 2024 reflect the divestiture of certain pet food brands on April 28, 2023. All comparisons are to the first quarter of the prior fiscal year, unless otherwise noted.

EXECUTIVE SUMMARY

Net sales decreased $67.8 million, or 4 percent. Net sales excluding the divestiture and foreign currency exchange increased 21 percent.

Net income per diluted share was $1.79. Adjusted earnings per share was $2.21, an increase of 32 percent.

Cash provided by operations was $217.9 million, compared to cash used of $39.0 million in the prior year. Free cash flow was $67.6 million, compared to $(127.3) million in the prior year.

The Company updated its full-year fiscal 2024 financial outlook.

CHIEF EXECUTIVE OFFICER REMARKS

"Our first quarter results reflect a positive start to our fiscal year, including volume growth in every business segment," said Mark Smucker, Chair of the Board, President and Chief Executive Officer. "Our ability to continue delivering results in a dynamic environment is due to our talented employees, focused strategy and execution, cost and productivity savings, partnership with our customers, and consumer demand for our leading brands."

"Our continued business momentum gives us confidence to increase our earnings per share expectations for this fiscal year. In the months ahead, we will continue to support our key growth platforms of coffee, snacking, and pet, which are well-positioned to drive sustainable growth and deliver long-term shareholder value."

FIRST QUARTER CONSOLIDATED RESULTS

Three Months Ended July 31,

2023

2022

% Increase

(Decrease)

(Dollars and shares in millions, except per share data)

Net sales

$1,805.2

$1,873.0

(4) %

Operating income

$303.5

$179.7

69 %

Adjusted operating income

331.7

270.0

23 %

Net income per common share - assuming dilution

$1.79

$1.03

74 %

Adjusted earnings per share - assuming dilution

2.21

1.67

32 %

Weighted-average shares outstanding - assuming dilution

102.8

106.8

(4) %

Net Sales

Net sales decreased 4 percent, including a 9 percent favorable impact from Jif(r) peanut butter primarily due to lapping the product recall in the prior year. Excluding noncomparable net sales in the prior year of $374.1 million from the divested pet food brands, as well as $3.8 million of unfavorable foreign currency exchange, net sales increased $310.1 million, or 21 percent.

The increase in comparable net sales was driven by a 13 percentage point increase from volume/mix, primarily driven by Jif(r) peanut butter, contract manufacturing sales related to the divested pet food brands, and coffee products. Comparable net sales growth was also supported by an 8 percentage point increase from net price realization...