Smucker Turns Red Ink Into Lots of Black
For a company that reported lower sales after a year of red ink, you’d expect J.M. Smucker Co.’s full-year financial report to be glum. But with underperforming divestitures outweighing that one big acquisition – Hostess Brands – lower sales meant sharply higher profits in the company’s 2024 fiscal year, which ended April 30.
For the fiscal year, net sales were $8.2 billion, a decrease of 4%. However, sales excluding the acquisition, divestitures and foreign currency exchange increased 8%. More importantly, net income was a fat $744 million, quite a reversal from the $91 million loss in fiscal 2023. Adjusted earnings per share were $9.94, an increase of 11%.
"Our fourth quarter and full-year results underscore the strength of our business and the demand for our leading brands," said Mark Smucker, chairman and president/CEO. "Our transformed portfolio, including the acquisition of Hostess Brands during the fiscal year, has strengthened our business for long-term profitable growth across our key platforms of coffee, Uncrustables frozen sandwiches, dog snacks and cat food, and sweet baked snacks.
"Looking ahead, fiscal year 2025 will be a year of investment in our brands, capabilities, and talented employees, who have been instrumental to our success,” he continued. “Our strategy is working and our priorities are clear: deliver our core business, successfully integrate the Hostess business, achieve our synergy aspirations, and advance our transformation and cost discipline activities. We are confident we are well-positioned to deliver long-term growth and increase shareholder value."
In addition to acquiring Hostess in November 2023, the company sold its Sahale Snacks business last November and certain pet food brands in April of last year, plus its Canada condiment business this January.
The company also provided its fiscal year 2025 outlook, with net sales expected to increase 9.5-10.5%, adjusted earnings per share to range from $9.80 to $10.20, and free cash flow of $900 million.
About the Author
Dave Fusaro
Editor in Chief
Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.