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The J.M. Smucker Co. (NYSE: SJM) today reported its financial results for the fourth quarter and fiscal year ending April 30, 2024. The results reflect the significant business activities undertaken during the year, including the divestiture of the Canada condiment business on January 2, 2024, the acquisition of Hostess Brands, Inc. on November 7, 2023, the sale of the Sahale Snacks® business on November 1, 2023, and the divestiture of certain pet food brands on April 28, 2023.
Fourth Quarter Performance
For the fourth quarter, net sales amounted to $2.2 billion, marking a decrease of $29.1 million, or 1 percent, compared to the same period last year. However, excluding the effects of the acquisition, divestitures, and foreign currency exchange, net sales increased by 3 percent. Net income per diluted share for the quarter was $2.30, while adjusted earnings per share rose by 1 percent to $2.66. Cash provided by operations for the quarter totaled $428.1 million, down from $443.8 million in the prior year. Free cash flow for the quarter was $297.5 million.
Fiscal Year 2024 Overview
For the full fiscal year, net sales were $8.2 billion, reflecting a 4 percent decrease. Excluding acquisition, divestitures, and foreign currency impacts, net sales increased by 8 percent. Net income per diluted share for the fiscal year stood at $7.13, with adjusted earnings per share increasing by 11 percent to $9.94. The company generated $642.9 million in free cash flow for the year and returned $437.5 million to shareholders through dividends.
Strategic Transactions
The fiscal year's financial results were significantly influenced by the acquisition of Hostess Brands, which contributed to overall sales growth. Additionally, the divestitures of the Canada condiment business, Sahale Snacks® business, and certain pet food brands streamlined the company's portfolio and refocused its strategic priorities.
Fiscal Year 2025 Outlook
Looking ahead, The J.M. Smucker Co. provided a positive outlook for fiscal year 2025. The company expects net sales to increase by 9.5 to 10.5 percent, driven by a full year of contributions from the Hostess Brands acquisition, favorable volume/mix, and higher net price realization. Comparable net sales are projected to rise by approximately 1.5 to 2.5 percent, excluding noncomparable sales from the Hostess Brands acquisition and the divestitures of Sahale Snacks® and the Canada condiment business.
Adjusted earnings per share for fiscal 2025 are forecasted to be in the range of $9.80 to $10.20. This guidance incorporates the anticipated increase in net sales, an adjusted gross profit margin of about 38.0 percent, a 13.0 percent rise in SD&A expenses, $400.0 million in interest expense, an adjusted effective income tax rate of 24.4 percent, and 106.4 million weighted-average common shares outstanding. Free cash flow is expected to be approximately $900.0 million, with capital expenditures estimated at $450.0 million.
