The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Q4 2020 Earnings Presentation
20 slides from The J.m. Smucker's earnings presentation, Jun 4, 2020
Slide 1: Fourth Quarter Fiscal 2020 Earnings Supplementary Information
The J. M. Smucker Company Fourth Quarter Fiscal 2020 Earnings SUPPLEMENTARY INFORMATION June 4, 2020
Slide 2: Consolidated Results
Consolidated Results ($ in millions, except per share data) FY20 Q4 FY19 Q4 YoY Change Net Sales $2,092.0 $1,902.1 10% Adjusted Gross Profit $806.4 $721.6 12% Adjusted Gross Profit Margin 38.5% 37.9% 60bps Adjusted Operating Income $431.2 $353.3 22% Adjusted Operating Income Margin 20.6% 18.6% 200bp
Slide 3: Consolidated Results: Net Sales Analysis
Consolidated Results Net Sales Analysis $214M -$20M -$4M $1,784M $2,092M $1,902M YoY Change 11% (1%) (0%) Note: Amounts may not add due to rounding 3
Slide 4: Consolidated Results: Balance Sheet/Cash Flow Highlights
Consolidated Results Balance Sheet/Cash Flow Highlights ($ in millions) FY20 Q4 FY19 Q4 Cash from Operations $287.7 $274.2 Capital Expenditures (76.4) (92.6) Free Cash Flow $211.3 $181.6 April 30, 2020 April 30, 2019 Total Debt (Gross) $5,621.3 $5,910.8 EBITDA (as adjusted, TTM) $1,714.8 $1,560.9 Gr
Slide 5: Segment Results – FY20 Q4
Segment Results – FY20 Q4 PET CONSUMER INT’L & AWAY COFFEE ($ in millions) FOODS FOODS FROM HOME Net Sales $767.8 $581.6 $480.5 $262.1 YoY Change 6% 11% 22% 0% YoY Net Sales Change Summary: Volume/Mix 8% 13% 21% 2% Net Price Realization (2%) (3%) 1% 0% Foreign Currency Exchange - - - (2%) Segment Pr
Slide 6: Full-Year Fiscal 2021 Outlook
Full-Year Fiscal 2021 Outlook Net Sales (2%) – (1%) Adjusted EPS – Assuming Dilution $7.90 - $8.30 Free Cash Flow $900 - $950M Capital Expenditures $300M Effective Tax Rate 24.0% 6
Slide 7: Total Company: Fiscal 2020 Net Sales by Reportable Segment
Total Company Fiscal 2020 Net Sales by Reportable Segment U.S. RETAIL COFFEE U.S. RETAIL PET FOODS 28% 37% $7.8B INTERNATIONAL & U.S. RETAIL AWAY FROM HOME CONSUMER FOODS 13% 22% Note: Amounts may not add due to rounding 7
Slide 8: U.S. Retail Reportable Segments: Net Sales by Channel
U.S. Retail Reportable Segments Fiscal 2020 Net Sales by Channel GROCERY 38% OTHER 4% $6.8B WALMART 31% E-COMMERCE CLUB 5% 10% PET SPECIALTY 5% DOLLAR 6% Note: Other includes Drug, Military, Mass Retail, and Convenience; Amounts may not add due to rounding 8
Slide 9: U.S. Retail Pet Foods Segment
U.S. Retail Pet Foods Segment Fiscal 2020 Net Sales DOG FOOD 38% SNACKS 29% PRIVATE LABEL 5% $2.9B CAT FOOD 28% Note: Amounts may not add due to rounding 9
Slide 10: U.S. Retail Coffee Segment
U.S. Retail Coffee Segment Fiscal 2020 Net Sales MAINSTREAM ROAST K-CUP & GROUND 26% 50% $2.1B INSTANT PREMIUM 8% 16% Note: Amounts may not add due to rounding 10
Slide 11: U.S. Retail Consumer Foods Segment
U.S. Retail Consumer Foods Segment Fiscal 2020 Net Sales OTHER 2% PEANUT BUTTER 39% TOPPINGS & SYRUP 3% $1.7B NATURAL FOODS & BEVERAGES 9% FRUIT SPREADS 17% SHORTENING & OILS FROZEN HANDHELDS 14% 16% Note: Amounts may not add due to rounding 11
Slide 12: International and Away From Home Segment
International and Away From Home Segment Fiscal 2020 Net Sales AWAY FROM HOME - CANADA FOOD 39% 32% $1.1B OTHER AWAY FROM HOME - INTERNATIONAL BEVERAGE 9% 20% Note: Amounts may not add due to rounding 12
Slide 13: Cost of Products Sold
Cost of Products Sold Fiscal 2020 FREIGHT TOP 5 RAW MATERIALS 7% 1. Coffee $4.8B 2. Meats and Protein Meals 65% LABOR/OVERHEAD INGREDIENTS 17% 64% 3. Nuts OF TOTAL RAW MATERIALS 4. Resin PACKAGING 12% 5. Grains Note: Amounts may not add due to rounding 13
Slide 14: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by thos
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company uses non-GAAP financial measures, including: net sales excluding acquisition, divestiture, and foreign currency exchange; adjusted gross profit; adjusted operating income; adjusted income; adjusted earnings per share; earnings before interest, taxes, depreciat
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Three Months Ended April 30, 2020 2019 Gross profit reconciliation: Gross profit $788.4 $692.4 Unallocated derivative losses (gains) 18.0 29.2 Adjusted gross profit $806.4 $721.6 Operating income reconciliation: Operating income $346.7 $153.6 Amortization 59.9
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended April 30, ($ and shares in millions, except per share data) 2020 2019 Net income reconciliation: Net income $226.3 $71.5 Income tax expense 72.1 30.4 Amortization 59.9 60.4 Goodwill impairment charge - 97.9 Unallocated derivative losses (gains) 18.0 29.2 Ot
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended April 30, ($ in millions) 2020 2019 EBITDA (as adjusted) reconciliation: Net income $779.5 $514.4 Income tax expense 247.2 187.2 Interest expense – net 189.2 207.9 Depreciation 210.2 206.0 Amortization 236.3 240.3 Goodwill impairment charge - 97.9 Other intangible
Slide 19: Non-GAAP Reconciliation: Company Guidance
Non-GAAP Reconciliation Company Guidance Year Ending April 30, 2021 ($ in millions, except per share data) Low High Net income per common share – assuming dilution reconciliation: Net income per common share – assuming dilution $ 6.53 $ 6.93 Amortization 1.59 1.59 Unallocated derivative losses (gain
Slide 20: The J. M. Smucker Company
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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