J.M. Smucker Co. Reports Mixed Fourth-Quarter Fiscal Year 2025 Results

The J.M. Smucker Co. (NYSE: SJM) recently released its financial results for the fourth quarter of fiscal year 2025, providing insights into the company’s performance amid significant business changes and setting the stage for future guidance.

J.M. Smucker Beats EPS Expectations Despite Decrease in Net Sales y/y, Revenue Miss

The J.M. Smucker Co. reported net sales of $2.1 billion for the fourth quarter, marking a 3% decrease compared to the previous year. This decline was primarily attributed to divestitures and unfavorable foreign currency exchange rates. Excluding these factors, net sales decreased by 1%, reflecting a mixed performance across various product segments. The company’s adjusted earnings per share (EPS) came in at $2.31, surpassing the expected EPS of $2.25 but representing a 13% decrease from the previous year’s adjusted EPS of $2.66.

Despite the decline in net sales, the company saw a notable increase in its U.S. Retail Coffee segment, which reported an 11% rise in net sales driven by higher pricing for key brands like Folgers® and Café Bustelo®. However, the Sweet Baked Snacks segment faced significant challenges, with net sales dropping by 26% due to divestitures and decreased demand for snack cakes and donuts. Segment profit for Sweet Baked Snacks fell by 72%, highlighting the impact of higher costs and lower pricing.

In comparison to expectations, the company’s performance was mixed. While the adjusted EPS exceeded forecasts, the net sales figures fell short of the anticipated $2.18 billion.

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J.M. Smucker Co. Expects 2%-4% Net Sales Growth for Fiscal Year 2026

Looking forward, The J.M. Smucker Co. has provided guidance for fiscal year 2026, projecting net sales growth between 2% and 4%. This outlook takes into account the impact of recent divestitures, including the Voortman® business and certain Sweet Baked Snacks value brands. The company expects comparable net sales to increase by approximately 3.5% to 5.5%, driven by higher pricing across its product portfolio, despite anticipated declines in volume/mix.

Adjusted earnings per share for fiscal year 2026 are expected to range from $8.50 to $9.50. This guidance reflects the anticipated increase in net sales, an adjusted gross profit margin of 35.5% to 36%, and a slight rise in selling, distribution, and administrative expenses. The company also projects free cash flow to be around $875 million, supported by capital expenditures of $325 million. These projections indicate a focus on maintaining financial stability while investing in strategic growth areas.

The company’s leadership remains optimistic about the future, emphasizing the strength of its key growth platforms and strategic priorities. CEO Mark Smucker highlighted the company’s commitment to delivering long-term growth and increasing shareholder value. Despite ongoing challenges such as input inflation and changes in consumer behavior, The J.M. Smucker Co. is well-positioned to leverage its diverse brand portfolio and operational agility to achieve its fiscal year 2026 objectives.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.