Financial Performance - For the three months ended January 31, 2025, net sales were $2,186.0 million, a decrease of 2% compared to $2,229.2 million in the same period of 2024[153]. - Gross profit for the three months ended January 31, 2025, was $878.1 million, representing a 7% increase from $823.1 million in the prior year[153]. - The company reported a net loss of $662.3 million for the three months ended January 31, 2025, compared to a net income of $120.4 million in the same period of 2024[153]. - During the first nine months of 2025, adjusted operating income was $1,402.3 million, a 19% increase from $1,174.6 million in the same period of 2024[153]. - Net sales for the three months ended January 31, 2025, decreased by $43.2 million, or 2%, while net sales for the nine months increased by $609.3 million, or 10%[154][157]. - Operating income (loss) for the three months ended January 31, 2025, was (27.2)%, compared to 13.3% in the prior year, while for the nine months, it was (1.1)%, down from 15.1%[159]. - Free cash flow for the first nine months of 2025 was $517.7 million, compared to $345.4 million in the same period of 2024[189]. - Cash and cash equivalents decreased to $47.2 million as of January 31, 2025, from $62.0 million at April 30, 2024[188]. Acquisitions and Divestitures - The acquisition of Hostess Brands on November 7, 2023, was valued at $5.4 billion, contributing net sales of $927.8 million during the first nine months of 2025[144]. - The company anticipates achieving cost synergies of approximately $100.0 million from the Hostess Brands acquisition by the end of 2026, with $64.0 million already realized[144]. - The divestiture of the Voortman business generated net proceeds of $290.5 million, with a pre-tax loss of $268.4 million recognized upon closing the transaction[142]. - The Canada condiment business was sold for final net proceeds of $25.3 million, resulting in a pre-tax loss of $5.7 million[143]. - The company divested the Voortman business on December 2, 2024, resulting in the disposal of $251.1 million of goodwill[226]. Costs and Expenses - The company incurred total integration costs related to the Hostess Brands acquisition of approximately $210.0 million, with cumulative costs recognized to date of $182.3 million[172]. - The company anticipates incurring approximately $12.0 million in costs related to addressing distribution inefficiencies from recent divestitures, with half expected to be recognized in 2025[171]. - Marketing expenses as a percentage of net sales were 5.2% for both the three and nine months ended January 31, 2025, compared to 4.8% and 5.1% in the prior year, respectively[159]. Segment Performance - U.S. Retail Coffee segment net sales increased by $13.1 million in Q3 2025, with net price realization contributing 9 percentage points to the increase[178]. - U.S. Retail Frozen Handheld and Spreads segment net sales rose by $8.4 million in Q3 2025, driven by a 2 percentage point contribution from volume/mix[180]. - U.S. Retail Pet Foods segment net sales decreased by $42.2 million in Q3 2025, with volume/mix contributing a 9 percentage point decline[183]. - Sweet Baked Snacks segment reported net sales of $278.6 million in Q3 2025, with an 8 percent decrease when excluding noncomparable sales from the Hostess Brands acquisition[185]. - International and Away From Home segment net sales decreased by $0.8 million in Q3 2025, but increased by $13.8 million or 5 percent when excluding noncomparable impacts[186]. Debt and Equity - As of January 31, 2025, total debt was $7,847.3 million, down from $8,364.0 million as of April 30, 2024, indicating a reduction in overall debt levels[201]. - Shareholders' equity decreased to $6,907.3 million from $7,693.9 million over the same period, reflecting a decline in the company's net worth[201]. - The company completed a $3.5 billion offering of Senior Notes in October 2023 to finance the acquisition of Hostess Brands and pay off associated debt[202]. - The company has a $2.0 billion unsecured revolving credit facility maturing in August 2026, with $462.0 million in short-term borrowings outstanding at a weighted-average interest rate of 4.55%[203]. - Dividend payments increased to $340.9 million in the first nine months of 2025 from $325.5 million in the same period of 2024, with dividends declared per share rising from $3.18 to $3.24[205]. Risks and Challenges - The company experienced input cost inflation and anticipates price increases across its business due to broader inflationary pressures[150]. - The company is facing uncertainties related to the sale of certain Sweet Baked Snacks value brands to JTM, with potential conditions that may not be satisfied or waived[245]. - There are challenges in successfully integrating Hostess Brands' operations and achieving financial forecasts related to the acquisition[245]. - The anticipated benefits from the Hostess Brands acquisition, including synergies and cost savings, may not be realized within the expected time frame[245]. - The acquisition of Hostess Brands could negatively affect the market price of the company's common shares[245]. - The company is exposed to risks related to supply chain disruptions, including political instability and natural disasters[245]. - Food security concerns may impact consumer preferences and lead to potential product recalls[245]. - The company must manage commodity pricing and interest rate risks through derivative and purchasing strategies[245]. - There is a risk of not achieving sufficient cash flow to support capital expenditures, debt repayment, and dividend payments[245]. - The company faces competitive pressures in the market, including pricing practices and promotional spending from competitors[245]. Other Information - The company is involved in ongoing litigation related to a product recall of Jif peanut butter, with no loss contingency recorded as of January 31, 2025, due to the uncertainty of financial impact[197]. - A new manufacturing facility for Uncrustables sandwiches is being built in McCalla, Alabama, with a total investment of $1.1 billion, expected to begin production in the second quarter of 2025[210]. - The company has returned $35.0 million of foreign cash to the U.S. from Canada during the first nine months of 2025, with no tax impacts reported[212]. - The company is in compliance with all debt covenants as of January 31, 2025, and expects to maintain compliance for the next 12 months[204]. - The company does not undertake any obligation to update or revise forward-looking statements after the filing of the Quarterly Report[247].

Core Insights - The J. M. Smucker Company (SJM) reported third-quarter fiscal 2025 results with adjusted earnings per share increasing 5% year over year, surpassing estimates, while net sales declined 2% and missed consensus expectations [1][3][4] Financial Performance - Adjusted earnings per share reached $2.61, exceeding the Zacks Consensus Estimate of $2.37 [3] - Net sales totaled $2,186 million, down 2% year over year, missing the Zacks Consensus Estimate of $2,221 million [4] - Excluding noncomparable net sales from last year and the Hostess Brands acquisition, net sales dipped 1%, with a 5% decline in volume/mix partially offset by a 3% increase in net price realization [4] Segment Performance - U.S. Retail Pet Foods: Sales fell 9% to $423 million, with a 9-percentage-point adverse impact from volume/mix, while profit increased 7% to $116.8 million [6] - U.S. Retail Coffee: Sales grew 2% to $740.6 million, driven by a 9% increase in net price realization, despite a 7% decline in volume/mix [7] - U.S. Retail Frozen Handheld and Spreads: Sales increased 2% to $445.2 million, while profit decreased 5% to $99.2 million [8] - Sweet Baked Snacks: Sales declined 7% to $278.6 million, with profit slumping 19% to $54.8 million [9] - International and Away from Home: Net sales dropped slightly to $298.6 million, but profit increased 22% to $61.6 million [10] Financial Health - The company ended the quarter with cash and cash equivalents of $47.2 million and long-term debt of $6,385.5 million [12] - Cash flow from operating activities was $239.4 million, with free cash flow at $151.3 million [12] Future Guidance - Fiscal 2025 net sales are now anticipated to increase by 7.25%, slightly down from previous guidance [14] - Adjusted EPS for fiscal 2025 is projected in the range of $9.85-$10.15, up from earlier expectations [16] - Management's guidance does not include effects from the planned divestiture of certain Sweet Baked Snacks brands, expected to impact net sales by approximately $10 million [17]

For the quarter ended January 2025, Smucker (SJM) reported revenue of $2.19 billion, down 1.9% over the same period last year. EPS came in at $2.61, compared to $2.48 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.22 billion, representing a surprise of -1.59%. The company delivered an EPS surprise of +10.13%, with the consensus EPS estimate being $2.37.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Core Insights - Smucker (SJM) reported quarterly earnings of $2.61 per share, exceeding the Zacks Consensus Estimate of $2.37 per share, and showing an increase from $2.48 per share a year ago, resulting in an earnings surprise of 10.13% [1] - The company posted revenues of $2.19 billion for the quarter ended January 2025, which was below the Zacks Consensus Estimate by 1.59% and a decrease from $2.23 billion year-over-year [2] - Smucker has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Earnings Outlook - The future performance of Smucker's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.31 on revenues of $2.21 billion, while for the current fiscal year, the estimate is $9.88 on revenues of $8.82 billion [7] Industry Context - The Zacks Industry Rank indicates that the Food - Miscellaneous sector is currently in the bottom 31% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - United Natural Foods (UNFI), a peer in the same industry, is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year increase of 157.1%, with revenues projected at $7.96 billion, up 2.3% from the previous year [9][10]

The J. M. Smucker Company (NYSE:SJM) Q3 2025 Earnings Conference Call February 27, 2025 7:00 AM ET Company Participants Crystal Beiting - VP, IR & FP&A Mark Smucker - Chair of the Board, President and CEO Tucker Marshall - CFO Conference Call Participants Crystal Beiting Good morning. This is Crystal Beiting, Vice President, Investor Relations and Financial Planning and Analysis for The J. M. Smucker Company. Thank you for listening to our prepared remarks on our Fiscal 2025 Third Quarter Earnings. After th ...

Financial Data and Key Metrics Changes - Net sales for the quarter decreased by 2%, with comparable net sales down by 1% [47][48][103] - Adjusted earnings per share for the third quarter was $2.61, an increase of 5% compared to the prior year [115] - The company raised the mid-point of its adjusted earnings per share guidance to $10.00, reflecting improved gross margin expansion and earlier realization of synergies [104][66] Business Line Data and Key Metrics Changes - Uncrustables brand net sales grew by 15%, driven by advertising campaigns and distribution gains [12][76] - Café Bustelo brand also saw a 15% increase in net sales, gaining share in all segments it competes in [15][80] - Milk-Bone brand faced supply chain disruptions but is expected to return to full distribution in the fourth quarter [18][82] - Sweet Baked Snacks segment net sales decreased by 8%, primarily due to declines in snack cakes and private label products [36][56] Market Data and Key Metrics Changes - The Coffee segment net sales increased by 2%, with net price realization contributing positively [30][52] - Pet Foods segment reported a 9% decrease in net sales, primarily due to lower contract manufacturing sales related to divested brands [54][99] - International and Away From Home segments saw a 5% increase in comparable net sales, driven by strong performance in Away From Home channels [102] Company Strategy and Development Direction - The company is focusing on key growth platforms, including Uncrustables and Café Bustelo, to drive future growth [11][79] - A comprehensive strategy is in place to stabilize and return the Hostess brand to growth, with new leadership announced for the Pet and Sweet Baked Snacks businesses [23][88] - The company is committed to evolving its portfolio and optimizing its manufacturing network to mitigate costs [28][93] Management's Comments on Operating Environment and Future Outlook - Management acknowledged supply chain disruptions impacting results but expressed confidence in returning to growth [10][11] - The company anticipates full-year net sales growth of approximately 7.25%, reflecting the impact of the Hostess Brands acquisition [62][103] - Management remains optimistic about long-term sustainable growth and generating over $1 billion in free cash flow annually [41][106] Other Important Information - The company recognized significant impairment charges of $794 million related to the Sweet Baked Snacks segment and $208 million for the Hostess brand trademark [45][109] - Cash provided by operating activities was $239 million, down from $407 million in the prior year, reflecting higher working capital requirements [60] Q&A Session Summary Question: What are the expectations for the Sweet Baked Snacks segment? - Management indicated that the Sweet Baked Snacks segment is facing challenges but is implementing a strategy to return it to growth [86][109] Question: How is the company addressing supply chain disruptions? - The company has resolved certain supply chain issues and anticipates returning to full distribution for affected brands [10][18] Question: What is the outlook for the Coffee segment? - The Coffee segment is expected to continue performing well, with price increases implemented to manage higher commodity costs [30][52]

Core Insights - J.M. Smucker reported mixed fiscal 2025 third-quarter earnings, with adjusted EPS of $2.61 exceeding analyst expectations of $2.37, representing a 10% surprise, while net sales of $2.19 billion fell short of the $2.22 billion forecast [1][2][3] Financial Performance - Adjusted EPS increased by 5% year-over-year from $2.48 to $2.61, while net sales decreased by 1.9% from $2.23 billion in Q3 2024 to $2.19 billion in Q3 2025 [3] - Adjusted operating income rose by 1% to $463.8 million compared to $457.5 million in the previous year [3] - Free cash flow significantly declined by 39% year-over-year, dropping from $249.6 million to $151.3 million [3][8] Strategic Actions - The company is focusing on refining its product range and enhancing high-growth segments, including the acquisition of Hostess Brands and divesting non-core assets [4][5] - J.M. Smucker aims to manage commodity price volatility and supply chain disruptions while concentrating on segments with higher growth potential [5] Segment Performance - U.S. Retail Coffee experienced a 2% sales increase due to price adjustments, despite a 7% volume drop [7] - The Sweet Baked Snacks segment saw a 7% decline in sales, facing challenges in volume and pricing post-acquisition [7] - U.S. Retail Pet Foods faced a net sales decline but improved segment profits by 7% through operational efficiencies [7] Future Outlook - Management revised EPS guidance upward to a range of $9.85 to $10.15, indicating confidence in core operational improvements [10] - Expected net sales growth is projected at 7.25%, with comparable net sales growth of approximately 0.75% [10] - Strategic growth areas such as frozen handhelds and spreads are anticipated to offer promising prospects [11]

FISCAL 2025 THIRD QUARTER RESULTS SUPPLEMENTARY INFORMATION February 27, 2025 Updated full-year fiscal 2025 financial outlook. FY25 Q3 RESULTS SUPPLEMENT 2 (A) Excludes the noncomparable impact to net sales of the Hostess Brands acquisition, divestitures, and foreign currency exchange. (Dollars in millions, except per share data) CONSOLIDATED RESULTS | | FY25 Q3 | FY24 Q3 | YoY Change | | --- | --- | --- | --- | | Net Sales | $2,186.0 | $2,229.2 | (2%) | | Adjusted Gross Profit | $819.2 | $828.3 | (1%) | | ...

Exhibit 99.1 The J.M. Smucker Co. Announces Fiscal 2025 Third Quarter Results ORRVILLE, Ohio, Feb. 27, 2025 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) today announced results for the third quarter ended January 31, 2025, of its 2025 fiscal year. Financial results for the third quarter of fiscal year 2025 reflect the divestiture of the Voortman business on December 2, 2024, divestiture of the Canada condiment business on January 2, 2024, and acquisition of Hostess Brands, Inc. ("Hostess Brands") on Nov ...

Core Viewpoint - The J.M. Smucker Co. is restructuring its leadership to enhance growth in the U.S. Retail Pet Foods and Sweet Baked Snacks segments, with Judd Freitag appointed to lead these areas, effective March 7, 2025 [1][2]. Leadership Changes - Judd Freitag has been promoted to Senior Vice President and General Manager for Pet and Sweet Baked Snacks, reflecting the company's commitment to the Hostess® brand and its pet business [2]. - Freitag has a strong background in Finance, Corporate Strategy, and Brand Marketing, and has played a key role in the turnaround of the U.S. Retail Pet Foods business [2]. - Dan O'Leary, the current Senior Vice President and General Manager for Sweet Baked Snacks and Pet, will exit the company on March 7, 2025 [4]. Supply Chain and Manufacturing Structure - The company is decoupling its supply chain and manufacturing organizations to improve oversight and execution [3]. - Bryan Hutson will take on expanded responsibilities for supply chain activities as Senior Vice President, Information Services and Supply Chain [3]. - Randy Day will continue to oversee manufacturing as Senior Vice President, Operations [3].