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Group 1 - The J.M. Smucker Co. announced a dividend of $1.08 per share on common shares, payable on June 2, 2025, to shareholders of record by May 16, 2025 [1] - The Annual Meeting of Shareholders is scheduled for August 13, 2025, in a virtual-only format, starting at 12:00 p.m. Eastern Time [2] - Shareholders must enter a 16-digit control number to join the webcast and vote during the meeting [2] Group 2 - The J.M. Smucker Co. offers a diverse range of brands in North America, leading in categories such as coffee, peanut butter, and pet food [3] - The company emphasizes its commitment to quality products and responsible operations, aiming to positively impact society while growing its business [3]

Market Overview - The three major U.S. indexes, Nasdaq Composite, S&P 500, and Dow Jones Industrial Average, experienced significant declines of 9.89%, 9.58%, and 8.78% respectively last week due to President Trump's reciprocal tariff policies implemented on April 2, 2025, raising fears of a near-term recession [1] - Analysts predict a slowdown in economic growth and a rise in short-term inflation, with the core personal consumption expenditure (PCE) inflation marking a monthly gain of 0.4% in February 2025, the largest since January 2024 [2] Economic Indicators - The Institute of Supply Management (ISM) reported that manufacturing PMI contracted to 49% and services PMI to 50.8% in March, indicating a contraction in manufacturing activities [3] - Job openings fell by 194,000 to 7.568 million in February, marking the lowest level since September 2024, with the employment index declining to 46.2% in March from 53.9% in February [3] Investment Performance - PhenixFIN Corporation (PFX) shares gained 6.2% since being upgraded to Zacks Rank 1 on February 12, while United Fire Group, Inc. (UFCS) returned 5.2% since its upgrade on February 13, both outperforming the S&P 500's significant declines [4][5] - A hypothetical portfolio of Zacks Rank 1 stocks returned -3.48% in January 2025, compared to -0.60% for the S&P 500, but had a strong performance in 2024 with a return of +22.3% [5][6] Zacks Recommendations - EZCORP, Inc. (EZPW) and Palomar Holdings, Inc. (PLMR) saw share increases of 13.4% and 5% respectively since their Zacks Recommendation upgrades to Outperform [8] - The Zacks Focus List portfolio, which includes HCA Healthcare, Inc. (HCA) and Palantir Technologies Inc. (PLTR), returned +0.87% this year through February 2025, outperforming the S&P 500's -14.2% decline over the same period [11][12] Long-term Performance - The Zacks Top 10 portfolio has produced a cumulative return of +1948.35% since 2012, significantly outperforming the S&P 500's +469.98% return in the same timeframe [24]

ORRVILLE, Ohio, March 5, 2025 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) today announced that Mark Smucker, Chair of the Board, President and Chief Executive Officer, and Tucker Marshall, Chief Financial Officer, will participate in a fireside chat at the BofA Securities 2025 Consumer and Retail Conference on Tuesday, March 11, 2025, at 8:00 a.m. Eastern Time.A listen-only live webcast of the fireside chat can be accessed on the Company's website: investors.jmsmucker.com. A replay of the webcast will ...

Core Insights - The J. M. Smucker Company has divested its Cloverhill and Big Texas brands, along with certain private-label products, to JTM Foods for approximately $40 million in cash, aligning with its strategy to streamline operations and focus on high-growth opportunities [1][2][10] Divestiture Details - The transaction includes trademarks, licenses, and a manufacturing facility in Chicago, IL, with nearly 400 employees transitioning to JTM Foods [2] - The divestiture is expected to streamline manufacturing operations, leading to more efficient resource allocation and cost savings [2] Financial Impact - The divestiture is anticipated to reduce The J. M. Smucker's fiscal 2025 net sales by roughly $10 million, but it will have minimal impact on full-year adjusted earnings per share [3][10] Strategic Focus - This move supports the company's long-term strategy of optimizing its product mix and reinforcing its market presence in sweet baked goods through the Hostess brand [4][10] - By reducing operational complexities, the company aims to drive sustained growth and enhance profitability in this high-priority category [4][7] Long-term Growth Strategy - Innovation and brand expansion are central to the company's growth strategy, focusing on new product development and portfolio diversification to capture emerging consumer segments [8] - The company has demonstrated resilience in margin protection through disciplined cost management strategies, maintaining profitability despite inflationary pressures [9] Outlook - The divestiture indicates a strategic focus on refining the brand portfolio and strengthening the position in the competitive sweet baked goods market, allowing for resource allocation toward high-growth initiatives [10] - The streamlined approach enhances operational efficiency and reinforces the commitment to sustainable growth [10]

Core Viewpoint - The J.M. Smucker Co. has completed the divestiture of its Cloverhill and Big Texas brands, along with certain private label products, to JTM Foods for approximately $40 million, as part of its strategy to optimize its portfolio and focus on the Hostess brand [1][2]. Group 1: Transaction Details - The transaction is valued at approximately $40 million, subject to a working capital adjustment, and includes relevant trademarks, licenses, and a manufacturing facility in Chicago, along with about 400 employees transitioning to JTM [1]. - The divestiture is expected to impact fiscal year 2025 net sales by approximately $10 million and will be immaterial to full-year adjusted earnings per share [3]. Group 2: Strategic Implications - The divestiture reflects the company's commitment to portfolio optimization and resource prioritization to support the Hostess brand's growth in the sweet baked goods category [2]. - The decision aligns with the company's key pillars aimed at returning the Hostess brand to growth, including cost mitigation and reducing complexity within its manufacturing network [2]. Group 3: Financial Guidance - The company maintains its fiscal year 2025 guidance as communicated in its most recent quarterly earnings announcement on February 27, 2025 [3].

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 ...