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JM Smucker reports FY2021 net sales of $8b (+3%), retail coffee net sales at $2,374.6 (+10.5%)

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MILAN – The JM Smucker reported Thursday lower fourth-quarter revenue, but a stronger full 2021 fiscal year with the top and the bottom line beating consensus estimates. The parent company of Folgers and Café Bustelo reported an 8% decline in net sales to $1.92 billion in Q4 compared to the same period last year, when consumers were in full pantry-loading mode.

However, for fiscal 2021, JM Smucker reported net income of $876.3 million, or $7.79 a share, on revenue of $8 billion. For the full year, net sales were $8.0 billion, an increase of 3 percent

That compares to net income of $779.5 million, or $6.84 a share, on revenue of $7.8 billion for fiscal 2020. Results beat analyst expectations.

Q4 net sales for the U.S. retail coffee segment increased $1.5 million to 583.1, as volume/mix increases for the Dunkin and Café Bustelo brands were offset by a decline for the Folgers brand. Profit for U.S. retail coffee decreased $16.4 million to 173.7, primarily due to a $12.9 million increase in marketing investments.

Full-year net sales for the U.S. retail coffee segment increased by $225.1 million to $2,374.6 million. Profit for U.S. retail coffee increased $78.1 million to $769.1 million.

JM Smucker – Executive Summary

  • Net sales decreased $171.8 million, or 8 percent. Net sales excluding divestitures and foreign currency exchange decreased 3 percent, 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 $8.0 billion, an increase of 3 percent. Net sales excluding divestitures and foreign currency exchange increased 5 percent.
  • Net income per diluted share for the quarter was $1.35. Adjusted earnings per share was $1.89, a decrease of 26 percent.
  • For the full year, net income per diluted share was $7.79. Adjusted earnings per share was $9.12, an increase of 4 percent.
  • Cash from operations was $291.0 million compared to $287.7 million in the prior year. Free cash flow was $183.0 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 percent, 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 Officer.

“Our strong financial results reflect sustained elevated demand for at-home food and coffee consumption and consumers’ desire for our trusted and iconic brands. 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.”

“Looking ahead to fiscal year 2022, we are focused on building upon the momentum and exceptional results we delivered this year, advancing our consumer-centric growth strategy, and supporting our talented employees who have been instrumental to our success. I am confident the investments we have made in our businesses and the increased agility and flexibility we developed during the past year will enable us to continue driving sustainable growth and shareholder value.”