The J.m. Smucker Company · NYSE:SJM

The J.m. Smucker — Q4 2021 Earnings Presentation

27 slides from The J.m. Smucker's earnings presentation, Jun 3, 2021

  1. Slide 1: Fourth Quarter Fiscal 2021 Earnings

    Fourth Quarter Fiscal 2021 Earnings SUPPLEMENTARY INFORMATION June 3, 2021

  2. Slide 2: Consolidated Results

    Consolidated Results ($ in millions, except per share data) FY21 Q4 FY20 Q4 YoY Change Net Sales $1,920.2 $2,092.0 (8%) Adjusted Gross Profit $727.0 $806.4 (10%) Adjusted Gross Profit Margin 37.9% 38.5% -60bps Adjusted Operating Income $311.6 $431.2 (28%) Adjusted Operating Income Margin 16.2% 20.6%

  3. Slide 3: Consolidated Results: Net Sales Analysis

    Consolidated Results Net Sales Analysis ($80M) $24M $8M ($124M) $2,092M $1,920M YoY Change (4%) 1% 0% (6%) Note: Amounts may not add due to rounding FY21 Q4 EARNINGS SUPPLEMENT 3

  4. Slide 4: Consolidated Results: Balance Sheet/Cash Flow Highlights

    Consolidated Results Balance Sheet/Cash Flow Highlights ($ in millions) FY21 Q4 FY20 Q4 Cash from Operations $291.0 $287.7 Capital Expenditures (108.0) (76.4) Free Cash Flow $183.0 $211.3 April 30, 2021 April 30, 2020 Total Debt (Gross) $4,751.7 $5,621.3 EBITDA (as adjusted, TTM) $1,805.3 $1,714.8 G

  5. Slide 5: Segment Results: FY21 Q4

    Segment Results: FY21 Q4 PET CONSUMER INT’L & COFFEE ($ in millions) FOODS FOODS AFH Net Sales $674.6 $583.1 $419.8 $242.7 YoY Change (12%) - (13%) (7%) YoY Net Sales Change Summary: Volume/Mix (6%) - (3%) (9%) Net Price Realization 1% - 4% - Acquisition/Divestiture (7%) - (14%) (3%) Foreign Currenc

  6. Slide 6: Full-Year Fiscal 2022 Outlook

    Full-Year Fiscal 2022 Outlook Net Sales (3)% - (2)% Adjusted EPS – Assuming Dilution $8.70 - $9.10 Free Cash Flow (in millions) $900 Capital Expenditures (in millions) $380 Adjusted Effective Tax Rate 24.0% FY21 Q4 EARNINGS SUPPLEMENT 6

  7. Slide 7: Total Company: Fiscal 2021 Net Sales by Reportable Segment

    Total Company Fiscal 2021 Net Sales by Reportable Segment U.S. RETAIL COFFEE 30% U.S. RETAIL PET FOODS 36% $8.0B INTERNATIONAL & U.S. RETAIL AWAY FROM HOME CONSUMER FOODS 12% 23% FY21 Q4 EARNINGS SUPPLEMENT 7 Note: Amounts may not add due to rounding

  8. Slide 8: U.S. Retail Reportable Segments: Net Sales by Channel

    U.S. Retail Reportable Segments Fiscal 2021 Net Sales by Channel GROCERY 39% OTHER 4% $7.1B WALMART 29% E-COMMERCE CLUB 6% 11% PET SPECIALTY 5% DOLLAR 6% FY21 Q4 EARNINGS SUPPLEMENT 8 Note: E-Commerce represents pure-play online retailers only; Other includes Drug, Military, Mass Retail, and Conveni

  9. Slide 9: U.S. Retail Pet Foods Segment

    U.S. Retail Pet Foods Segment Fiscal 2021 Net Sales DOG FOOD 35% SNACKS 31% PRIVATE LABEL $2.8B 5% CAT FOOD 30% FY21 Q4 EARNINGS SUPPLEMENT 9 Note: Amounts may not add due to rounding

  10. Slide 10: U.S. Retail Coffee Segment

    U.S. Retail Coffee Segment Fiscal 2021 Net Sales MAINSTREAM K-CUP ROAST & GROUND 30% 47% $2.4B PREMIUM 16% INSTANT 8% FY21 Q4 EARNINGS SUPPLEMENT 10 Note: Amounts may not add due to rounding

  11. Slide 11: U.S. Retail Consumer Foods Segment

    U.S. Retail Consumer Foods Segment Fiscal 2021 Net Sales OTHER 1% PEANUT BUTTER 40% TOPPINGS & SYRUP 3% SHORTENING & OILS 10% $1.8B FROZEN HANDHELD 19% NATURAL FOODS & BEVERAGES 11% FRUIT SPREADS 17% FY21 Q4 EARNINGS SUPPLEMENT 11 Note: Amounts may not add due to rounding

  12. Slide 12: International and Away From Home Segment

    International and Away From Home Segment Fiscal 2021 Net Sales AWAY FROM HOME - CANADA FOOD & PET 44% 29% $948M OTHER INTERNATIONAL 10% AWAY FROM HOME - BEVERAGE 17% FY21 Q4 EARNINGS SUPPLEMENT 12 Note: Amounts may not add due to rounding

  13. Slide 13: Cost of Products Sold

    Cost of Products Sold Fiscal 2021 FREIGHT TOP 5 RAW MATERIALS 8% 1. Coffee 2. Meats and Protein Meals LABOR/OVERHEAD 18% $5.0B INGREDIENTS 46% 3. Nuts 67% OF TOTAL RAW 4. Resin MATERIALS 5. Grains PACKAGING CONTRACT 12% MANUFACTURING 17% FY21 Q4 EARNINGS SUPPLEMENT 13 Note: Amounts may not add due t

  14. Slide 14: 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

  15. Slide 15: Non-GAAP Financial Measures

    Non-GAAP Financial Measures The Company uses non-GAAP financial measures, including: adjusted gross profit; adjusted operating income; adjusted income; adjusted earnings per share; earnings before interest, taxes, depreciation, amortization, and impairment charges related to intangible assets (“EBIT

  16. Slide 16: Unaudited Non-GAAP Financial Measures

    Unaudited Non-GAAP Financial Measures ($ in millions) Three Months Ended April 30, 2021 2020 Gross profit reconciliation: Gross profit $735.7 $788.4 Unallocated derivative losses (gains) (12.1) 18.0 Cost of products sold – special project costs 3.4 - Adjusted gross profit $727.0 $806.4 Operating inc

  17. Slide 17: Unaudited Non-GAAP Financial Measures

    Unaudited Non-GAAP Financial Measures ($ and shares in millions, except per share data) Three Months Ended April 30, 2021 2020 Net income reconciliation: Net income $147.0 $226.3 Income tax expense 46.3 72.1 Amortization 56.9 59.9 Other intangible assets impairment charge 3.8 - Gain on divestitures

  18. Slide 18: Unaudited Non-GAAP Financial Measures

    Unaudited Non-GAAP Financial Measures ($ in millions) Three Months Ended TTM Ended Year Ended July 31, October 31, January 31, April 30, April 30, April 30, 2020 2020 2021 2021 2021 2020 EBITDA (as adjusted) reconciliation: Net income $237.0 $230.8 $261.5 $147.0 $876.3 $779.5 Income tax expense 76.6

  19. Slide 19: Non-GAAP Reconciliation: Company Guidance

    Non-GAAP Reconciliation Company Guidance Year Ending April 30, 2022 Low High Net income per common share – assuming dilution reconciliation: Net income per common share – assuming dilution $ 6.55 $ 6.95 Derivative gains (losses) – net(A) 0.43 0.43 Amortization 1.54 1.54 Other special project costs 0

  20. Slide 20: Non-GAAP Reconciliation: Free Cash Flow Guidance

    Non-GAAP Reconciliation Company Guidance ($ in millions) Year Ending April 30, 2022 Free cash flow reconciliation: Net cash provided by operating activities $ 1,280 Additions to property, plant, and equipment (380) Free cash flow $ 900 FY21 Q4 EARNINGS SUPPLEMENT 20

  21. Slide 21: Supplemental Net Sales Information

    Supplemental Net Sales Information Net Sales Excluding Divestitures – FY21 ($ in millions) Three Months Ended Year Ended July 31, October 31, January 31, April 30, April 30, 2020 2020 2021 2021 2021 Total Company Net Sales $1,971.8 $2,034.0 $2,076.7 $1,920.2 $8,002.7 Divested Crisco® Business (79.5)

  22. Slide 22: Supplemental Net Sales Information

    Supplemental Net Sales Information Net Sales Excluding Divestitures – FY21 ($ in millions) Three Months Ended Year Ended July 31, October 31, January 31, April 30, April 30, 2020 2020 2021 2021 2021 U.S. Retail Pet Food Net Sales $692.6 $708.7 $768.6 $674.6 $2,844.5 Divested Natural Balance® Busines

  23. Slide 23: Supplemental Net Sales Information

    Supplemental Net Sales Information Net Sales Excluding Divestitures – FY20 ($ in millions) Three Months Ended Year Ended July 31, October 31, January 31, April 30, April 30, 2019 2019 2020 2020 2020 Total Company Net Sales $1,778.9 $1,957.8 $1,972.3 $2,092.0 $7,801.0 Divested Crisco® Business (52.8)

  24. Slide 24: Supplemental Net Sales Information

    Supplemental Net Sales Information Net Sales Excluding Divestitures – FY20 ($ in millions) Three Months Ended Year Ended July 31, October 31, January 31, April 30, April 30, 2019 2019 2020 2020 2020 U.S. Retail Pet Food Net Sales $669.9 $709.9 $721.9 $767.8 $2,869.5 Divested Natural Balance® Busines

  25. Slide 25: Supplemental Net Sales Information

    Supplemental Net Sales Information Net Sales Excluding Divestitures – FY19 ($ in millions) Three Months Ended Year Ended July 31, October 31, January 31, April 30, April 30, 2018 2018 2019 2019 2019 Total Company Net Sales $1,902.5 $2,021.5 $2,011.9 $1,902.1 $7,838.0 Divested Crisco® Business (52.9)

  26. Slide 26: Supplemental Net Sales Information

    Supplemental Net Sales Information Net Sales Excluding Divestitures – FY19 ($ in millions) Three Months Ended Year Ended July 31, October 31, January 31, April 30, April 30, 2018 2018 2019 2019 2019 U.S. Retail Pet Food Net Sales $671.2 $728.1 $759.0 $721.2 $2,879.5 Divested Natural Balance® Busines

  27. Slide 27: Additional Information

    Additional Information: Aaron Broholm Vice President, Investor Relations aaron.broholm@jmsmucker.com Phone: (330) 682-3000 Investor Relations Website: https://investors.jmsmucker.com/ 27

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