J. M. Smucker(SJM)2025-06-10 11:12Financial Performance - Net sales for Q4 2025 were $2.1 billion, a decrease of $61.9 million, or 3% compared to Q4 2024[4] - For the fiscal year 2025, net sales were $8.7 billion, an increase of 7%, while net sales excluding acquisitions and divestitures were flat[4] - Adjusted earnings per share for Q4 2025 were $2.31, a decrease of 13% from $2.66 in Q4 2024[4] - The company reported a net loss per diluted share of $6.85 for Q4 2025, compared to a profit of $2.30 in Q4 2024[5] - Total net sales for the year ended April 30, 2025, increased to $8,726.1 million, up from $8,178.7 million in 2024, representing a growth of 6.7%[31] - The company reported a net loss of $729.0 million for the three months ended April 30, 2025, compared to a net income of $245.1 million in the same period of 2024[30] - The company reported a net loss of $729.0 million for the three months ended April 30, 2025, compared to a net income of $245.1 million in the same period of 2024[43] Cash Flow and Dividends - Free cash flow for the fiscal year 2025 was $816.6 million, with Q4 free cash flow at $298.9 million[4] - The company expects free cash flow of approximately $875.0 million for fiscal year 2026[13] - The company declared dividends of $1.08 per common share for the three months ended April 30, 2025, a 2% increase from $1.06 in the same period of 2024[25] - The company reported a net cash provided by operating activities of $393.9 million for the three months ended April 30, 2025, compared to $428.1 million in 2024[30] - The company expects net cash provided by operating activities for the year ending April 30, 2026, to be $1,200.0 million[51] Segment Performance - U.S. Retail Coffee segment net sales increased by 11% to $738.6 million, driven by higher net pricing[14] - U.S. Retail Pet Foods segment net sales decreased by 13% to $395.5 million, primarily due to lower contract manufacturing sales[16] - Sweet Baked Snacks segment net sales decreased by 26% to $251.0 million, reflecting a significant decline in volume/mix[18] - U.S. Retail Coffee segment reported net sales of $738.6 million for the three months ended April 30, 2025, compared to $666.1 million in 2024, reflecting a growth of 10.8%[35] - The U.S. Retail Pet Foods segment saw a decline in net sales to $395.5 million for the three months ended April 30, 2025, down from $452.6 million in 2024, a decrease of 12.6%[35] Impairment and Expenses - Goodwill impairment charges amounted to $867.3 million for the three months ended April 30, 2025, with total impairment charges for the year reaching $1,661.6 million[25] - The company incurred goodwill impairment charges of $867.3 million for the three months ended April 30, 2025[43] - Selling, distribution, and administrative expenses for the three months ended April 30, 2025, were $380.6 million, accounting for 17.8% of net sales, compared to 19.3% in 2024[31] - Interest expense for the year ended April 30, 2025, increased by 47% to $388.7 million from $264.3 million in 2024[25] Profitability Metrics - Gross profit for the year ended April 30, 2025, was $3,384.7 million, reflecting a 9% increase from $3,115.4 million in 2024[25] - The gross margin for the year ended April 30, 2025, was 38.8%, compared to 38.1% in 2024[25] - Gross profit for the three months ended April 30, 2025, was $823.3 million, down from $913.3 million in 2024, representing a gross margin of 37.5%[43] - Adjusted operating income for the year ended April 30, 2025, was $1,824.7 million, which is 20.9% of net sales, compared to $1,636.2 million or 20.0% in 2024[43] - EBITDA (as adjusted) for the year ended April 30, 2025, was $2,137.0 million, representing 24.5% of net sales, compared to $1,704.4 million or 20.8% in 2024[47] Future Outlook - The fiscal year 2026 outlook projects net sales growth of 2.0% to 4.0% and adjusted earnings per share between $8.50 and $9.50[12] - Adjusted earnings per share for the year ending April 30, 2026, are projected to be between $8.50 and $9.50[49]