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].

Wall Street analysts expect Smucker (SJM) to post quarterly earnings of $2.35 per share in its upcoming report, which indicates a year-over-year decline of 5.2%. Revenues are expected to be $2.22 billion, down 0.4% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company announces its ...

Core Viewpoint - The J. M. Smucker Company (SJM) is expected to experience declines in both revenue and earnings for the third quarter of fiscal 2025, with revenue estimated at $2.22 billion, reflecting a 0.4% decrease year-over-year, and earnings per share (EPS) projected at $2.35, indicating a 5.2% decline from the previous year [1][2]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for SJM's revenues is $2.22 billion, which represents a 0.4% drop from the prior-year quarter [1]. - The consensus estimate for earnings has decreased by a penny to $2.35 per share, suggesting a 5.2% decline from the year-ago quarter [2]. - SJM has a trailing four-quarter earnings surprise of 11.5% on average, indicating some potential for unexpected performance [2]. Group 2: Market and Consumer Dynamics - SJM is facing a challenging consumer environment characterized by inflation and reduced discretionary spending, which are altering purchasing habits [3]. - The sweet baked goods segment is particularly affected, with management revising its full-year guidance downward due to ongoing consumer challenges [3]. - Diminished activity across various retail channels, including convenience stores, is adding strain to the company's performance [3]. Group 3: Cost Pressures and Operational Challenges - SJM is vulnerable to commodity cost inflation and volatility, especially in its Coffee and Pet Foods segments, which poses risks to profitability despite pricing actions taken [4]. - The company anticipates a 9% increase in selling, distribution, and administrative (SD&A) expenses for fiscal 2025, primarily due to higher marketing investments [5]. - Adjusted EPS is expected to decline in mid-single digits in the third quarter of fiscal 2025 due to elevated SD&A expenses [5]. Group 4: Strategic Initiatives and Growth Potential - Despite challenges, SJM's strategic priorities include focusing on volume and net sales growth, operational excellence, and capitalizing on fast-growing opportunities [6]. - The integration of the acquired Hostess Brands business is a key focus area for SJM [6]. - The company is reshaping its portfolio to achieve sustainable growth across pet food, pet snacks, coffee, and snacking categories [6].

Core Viewpoint - The market anticipates a year-over-year decline in Smucker's earnings due to lower revenues, with a focus on how actual results will compare to these estimates [1][2]. Earnings Expectations - Smucker is expected to report quarterly earnings of $2.35 per share, reflecting a year-over-year decrease of 5.2%, and revenues are projected to be $2.23 billion, down 0.1% from the previous year [3]. - The earnings report is scheduled for release on February 27, 2025, and could influence stock movement depending on whether the results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.62% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for Smucker is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.40%, which complicates predictions of an earnings beat [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - Smucker has a history of beating consensus EPS estimates, having done so in the last four quarters, including a surprise of +9.96% in the most recent quarter [12][13]. - Despite this history, the current combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict a beat for the upcoming report [11][16]. Conclusion - While Smucker does not appear to be a compelling earnings-beat candidate, investors should consider other factors influencing stock performance ahead of the earnings release [16].