The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Q2 2020 Earnings Presentation
13 slides from The J.m. Smucker's earnings presentation, Nov 22, 2019
Slide 1: Second Quarter Fiscal 2020 Results
The J. M. Smucker Company Second Quarter Fiscal 2020 Results SUPPLEMENTARY INFORMATION November 22, 2019
Slide 2: Consolidated Results
Consolidated Results ($ in millions, except per share data) FY20 Q2 FY19 Q2 YoY Change Net Sales $1,957.8 $2,021.5 (3%) Adjusted Gross Profit $753.1 $771.4 (2%) Adjusted Gross Profit Margin 38.5% 38.2% 30bps Adjusted Operating Income $391.0 $415.7 (6%) Adjusted Operating Income Margin 20.0% 20.6% -6
Slide 3: Consolidated Results: Net Sales Analysis
Consolidated Results Net Sales Analysis $1,903M $2,022 ($2M) ($27M) ($2M) ($33M) $1,958 $1,779M YoY Change 0% (1%) 0% (2%) Net Sales Volume/Mix Net Price Foreign Acquisition/ Net Sales FY19 Q2 Realization Exchange Divestiture FY20 Q2 Note: Amounts may not add due to rounding 3
Slide 4: Consolidated Results: Balance Sheet/Cash Flow Highlights
Consolidated Results Balance Sheet/Cash Flow Highlights ($ in millions) FY20 Q2 FY19 Q2 Cash from Operations $224.0 $202.9 Capital Expenditures (63.4) (77.8) Free Cash Flow $160.6 $125.1 October 31, 2019 April 30, 2019 Total Debt (Gross) $5,711.9 $5,910.8 EBITDA (as adjusted, TTM) $1,593.4 $1,560.9
Slide 5: Segment Results – FY20 Q2
Segment Results – FY20 Q2 PET CONSUMER INT’L & AWAY COFFEE FOODS FOODS FROM HOME ($ in millions) Net Sales $709.9 $543.4 $426.1 278.4 YoY Change (2%) —% (8%) (3%) YoY Net Sales Change Summary: Volume/Mix (4%) 4% 2% (2%) Net Price Realization 1% (4%) (3%) -% Acquisition/Divestiture - - (7%) -% Foreig
Slide 6: Full-Year Fiscal 2020 Outlook
Full-Year Fiscal 2020 Outlook Current Previous Net Sales Growth (3%) (1%) - 0% Adjusted EPS – assuming dilution $8.10 - $8.30 $8.35 - $8.55 Free Cash Flow (in millions) $850 $875 - $925 Capital Expenditures (in millions) $300 - $320 $300 - $320 Effective Tax Rate 24.5% 24.5% - 25.0% 6
Slide 7: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by thos
Slide 8: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company uses non-GAAP financial measures, including: net sales excluding acquisition, divestiture, and foreign currency exchange; adjusted gross profit; adjusted operating income; adjusted income; adjusted earnings per share; earnings before interest, taxes, depreciat
Slide 9: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Three Months Ended October 2019 2018 Gross profit reconciliation: Gross profit $754.0 $771.3 Unallocated derivative losses (gains) (0.9) 0.1 Adjusted gross profit $753.1 $771.4 Operating income reconciliation: Operating income $329.8 $330.5 Amortization 58.8 5
Slide 10: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended October 31, ($ and shares in millions, except per share data) 2019 2018 Net income reconciliation: Net income $211.2 $188.5 Income tax expense 67.9 80.9 Amortization 58.8 59.7 Unallocated derivative losses (gains) (0.9) 0.1 Other special project costs 3.3 2
Slide 11: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Three Months Ended TTM Ended Year Ended January 31, April 30, July 31, October 31, October 31, April 30, 2019 2019 2019 2019 2019 2019 EBITDA (as adjusted) reconciliation: Net income $121.4 $71.5 $154.6 $211.2 $558.7 $514.4 Income tax expense 35.8 30.4 52.1 67
Slide 12: Non-GAAP Reconciliation: Fiscal 2020 Guidance
Non-GAAP Reconciliation Fiscal 2020 Guidance ($ in millions, except per share data) Year Ending April 30, 2020 Low High Net income per common share – assuming dilution reconciliation: Net income per common share – assuming dilution $6.77 $6.97 Net cumulative unallocated (losses) gains(A) (0.36) (0.3
Slide 13: Additional Information and Contact
The J. M. Smucker Company Additional Information: jmsmucker.com/investor-relations Contact: Aaron Broholm Vice President, Investor Relations aaron.broholm@jmsmucker.com Phone: (330) 682-3000
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