The J.m. Smucker Company · NYSE:SJM
The J.m. Smucker — Q4 2023 Earnings Presentation
25 slides from The J.m. Smucker's earnings presentation, Jun 6, 2023
Slide 1: Fiscal 2023 Fourth Quarter Earnings Supplementary Information
FISCAL 2023 FOURTH QUARTER EARNINGS SUPPLEMENTARY INFORMATION June 6, 2023
Slide 2: Consolidated Results
CONSOLIDATED RESULTS ($ in millions, except per share data) FY23 Q4 FY22 Q4 YoY Change Net Sales $2,234.8 $2,033.8 10% Adjusted Gross Profit $771.9 $655.2 18% Adjusted Gross Profit Margin 34.5% 32.2% 230bps Adjusted Operating Income $408.2 $350.9 16% Adjusted Operating Income Margin 18.3% 17.3% 100b
Slide 3: Consolidated Results: Net Sales Analysis
CONSOLIDATED RESULTS Net Sales Analysis ($ in millions) $230 ($8) ($12) $2,235 $2,034 ($10) YoY Change (0%) 11% (0%) (1%) FY23 Q4 EARNINGS SUPPLEMENT 3 Note: Amounts may not add due to rounding
Slide 4: Consolidated Results: Balance Sheet/Cash Flow Highlights
CONSOLIDATED RESULTS Balance Sheet/Cash Flow Highlights ($ in millions) FY23 Q4 FY22 Q4 Cash from Operations $437.4 $393.7 Capital Expenditures (138.7) (173.0) Free Cash Flow $298.7 $220.7 April 30, 2023 April 30, 2022 Total Debt (Gross) $4,314.2 $4,490.6 EBITDA (as adjusted, TTM) $1,597.8 $1,604.6
Slide 5: Segment Results: FY23 Q4
SEGMENT RESULTS: FY23 Q4 PET CONSUMER COFFEE INT’L & AFH FOODS FOODS ($ in millions) Net Sales $785.3 $692.5 $453.4 $303.6 YoY Change 9% 7% 14% 12% YoY Net Sales Change Summary: Acquisition/Divestitures (2%) - - (0%) Foreign Currency Exchange - - - (3%) Net Sales Excluding Divestitures and Foreign C
Slide 6: Full-Year Fiscal 2024 Outlook
FULL-YEAR FISCAL 2024 OUTLOOK Comparable Net Sales Increase* 8.5% - 9.5% Adjusted EPS – Assuming Dilution $9.20 - $9.60 Free Cash Flow (in millions) $650 Capital Expenditures (in millions) $550 Adjusted Effective Income Tax Rate 24.2% FY23 Q4 EARNINGS SUPPLEMENT 6 *Comparable net sales excludes net
Slide 7: FY24 Guidance: Net Sales
FY24 GUIDANCE Net Sales ($ in millions) $8,529 $8,529 +LSD% +8.5% to +9.5% +HSD% (18%) $7,007 $7,007 COMPARABLE BUSINESS GROWTH** +HSD% at mid-point * FY23 Q4 EARNINGS SUPPLEMENT *Reflects $1,522 million of divested net sales related to the divestiture of certain pet food brands. 7 **Includes organi
Slide 8: FY24 Guidance: Earnings Per Share
FY24 GUIDANCE Earnings Per Share $9.80-$10.20 $9.20-$9.60 $8.92 ($0.60) COMPARABLE BUSINESS GROWTH* +LDD% +MSD% at mid-point at mid-point ** FY23 Q4 EARNINGS SUPPLEMENT *Includes organic earnings growth and Jif ® product recall profit recovery. 8 **Represents SD&A excluding marketing expenses.
Slide 9: Total Company $8.5B: Net Sales by Reportable Segment
TOTAL COMPANY Fiscal 2023 Net Sales by Reportable Segment U.S. RETAIL U.S. RETAIL CONSUMER FOODS PET FOODS 19% 36% $8.5B INTERNATIONAL & AWAY FROM HOME 13% U.S. RETAIL COFFEE 32% FY23 Q4 EARNINGS SUPPLEMENT 9 Note: Amounts may not add due to rounding
Slide 10: U.S. Retail Reportable Segments $7.4B: Net Sales by Channel
U.S. RETAIL REPORTABLE SEGMENTS Fiscal 2023 Net Sales by Channel GROCERY 38% OTHER 3% $7.4B WALMART 31% E-COMMERCE CLUB 5% 13% PET SPECIALTY 3% DOLLAR 7% FY23 Q4 EARNINGS SUPPLEMENT Note: E-Commerce represents pure-play online retailers only; Other includes Drug, Military, Mass Retail, and Convenien
Slide 11: U.S. Retail Pet Foods Segment $3.0B
U.S. RETAIL PET FOODS SEGMENT Fiscal 2023 Net Sales DOG FOOD 31% SNACKS 33% $3.0B PRIVATE LABEL 2% CAT FOOD 34% FY23 Q4 EARNINGS SUPPLEMENT 11 Note: Amounts may not add due to rounding
Slide 12: U.S. Retail Coffee Segment $2.7B
U.S. RETAIL COFFEE SEGMENT Fiscal 2023 Net Sales MAINSTREAM ROAST & GROUND 47% PREMIUM 15% $2.7B INSTANT 7% K-CUP 30% FY23 Q4 EARNINGS SUPPLEMENT 12 Note: Amounts may not add due to rounding
Slide 13: U.S. Retail Consumer Foods Segment $1.6B
U.S. RETAIL CONSUMER FOODS SEGMENT Fiscal 2023 Net Sales PEANUT BUTTER 37% OTHER 4% $1.6B FROZEN HANDHELD 34% TOPPINGS & SYRUP 4% FRUIT SPREADS 21% FY23 Q4 EARNINGS SUPPLEMENT 13 Note: Amounts may not add due to rounding
Slide 14: International and Away From Home Segment $1.1B
INTERNATIONAL AND AWAY FROM HOME SEGMENT Fiscal 2023 Net Sales CANADA 36% OTHER $1.1B AWAY FROM HOME FOOD & PET INTERNATIONAL 34% 8% AWAY FROM HOME BEVERAGE 22% FY23 Q4 EARNINGS SUPPLEMENT 14 Note: Amounts may not add due to rounding
Slide 15: Cost of Products Sold $5.7B
COST OF PRODUCTS SOLD Fiscal 2023 INGREDIENTS 50% TOP 5 RAW MATERIALS 1. Coffee 2. Meats and Protein Meals FREIGHT $5.7B PACKAGING 11% 3. Nuts 73% OF TOTAL RAW 7% 4. Resin MATERIALS 5. Grains OVERHEAD CO-MANUFACTURING 10% 15% LABOR 7% FY23 Q4 EARNINGS SUPPLEMENT 15 Note: Amounts may not add due to r
Slide 16: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by thos
Slide 17: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The Company uses non-GAAP financial measures, including: net sales excluding divestitures and foreign currency exchange; adjusted gross profit; adjusted operating income; adjusted income; adjusted earnings per share; earnings before interest, taxes, depreciation, amortiza
Slide 18: Unaudited Non-GAAP Financial Measures
UNAUDITED NON-GAAP FINANCIAL MEASURES ($ in millions) Three Months Ended April 30, 2023 2022 Gross profit reconciliation: Gross profit $792.4 $666.7 Change in net cumulative unallocated derivative gains and losses (22.0) (14.5) Cost of products sold – special project costs 1.5 3.0 Adjusted gross pro
Slide 19: Unaudited Non-GAAP Financial Measures
UNAUDITED NON-GAAP FINANCIAL MEASURES Three Months Ended April 30, ($ and shares in millions, except per share data) 2023 2022 Net income reconciliation: Net income (loss) ($600.7) $202.1 Income tax expense (benefit) (77.9) 58.1 Amortization 40.1 57.5 Loss on divestiture 1,020.1 - Change in net cumu
Slide 20: Unaudited Non-GAAP Financial Measures
UNAUDITED NON-GAAP FINANCIAL MEASURES ($ in millions) Three Months Ended Year Ended Year Ended July 31, October 31, January 31, April 30, April 30, April 30, 2022 2022 2023 2023 2023 2022 EBITDA (as adjusted) reconciliation: Net income (loss) $109.8 $191.1 $208.5 ($600.7) ($91.3) $631.7 Income tax e
Slide 21: Non-GAAP Reconciliation: Company Guidance EPS
NON-GAAP RECONCILIATION Company Guidance Year Ending April 30, 2024 Low High Net income per common share – assuming dilution reconciliation: Net income per common share – assuming dilution (A) $ 7.93 $ 8.33 Change in net cumulative unallocated derivative gains and losses 0.12 0.12 Amortization 1.15
Slide 22: Non-GAAP Reconciliation: Free Cash Flow Guidance
NON-GAAP RECONCILIATION Company Guidance ($ in millions) Year Ending April 30, 2024 Free cash flow reconciliation: Net cash provided by operating activities $ 1,200 Additions to property, plant, and equipment (550) Free cash flow $ 650 FY23 Q4 EARNINGS SUPPLEMENT 22
Slide 23: Supplemental Net Sales Information
SUPPLEMENTAL NET SALES INFORMATION Net Sales Excluding Divestitures – FY23 ($ in millions) Three Months Ended Year Ended July 31, October 31, January 31, April 30, April 30, 2022 2022 2023 2023 2023 Total Company Net Sales $1,873.0 $2,205.1 $2,216.3 $2,234.8 $8,529.2 Divested Pet Food Brands (374.1)
Slide 24: Supplemental Net Sales Information
SUPPLEMENTAL NET SALES INFORMATION Net Sales Excluding Divestitures – FY23 ($ in millions) Three Months Ended Year Ended July 31, October 31, January 31, April 30, April 30, 2022 2022 2023 2023 2023 U.S. Retail Pet Foods Net Sales $729.0 $765.2 $758.6 $785.3 $3,038.1 Divested Pet Food Brands (367.7)
Slide 25: Additional Information
ADDITIONAL INFORMATION: Aaron Broholm Vice President, Investor Relations ir.team@jmsmucker.com Phone: (330) 682-3000 Investor Relations Website: https://investors.jmsmucker.com/ FY23 Q4 EARNINGS SUPPLEMENT 25
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