The J. M. Smucker Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended April 30, 2017; Provides Earnings Guidance for the Year 2018
June 08, 2017 at 07:15 am EDT
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The J. M. Smucker Company reported unaudited consolidated earnings results for the fourth quarter and year ended April 30, 2017. For the quarter, the company reported net sales of $1,783.8 million compared to $1,807.6 million a year ago. Operating income was $196.7 million compared to $246.1 million a year ago. Income before income taxes was $161.9 million compared to $210.2 million a year ago. Net income was $110.4 million or $0.96 per basic and diluted share compared to $191.0 million or $1.61 per basic and diluted share a year ago. Net cash provided by operating activities was $264.1 million compared to $336.2 million a year ago. Additions to property, plant, and equipment were $55.8 million compared to $40.6 million a year ago. Adjusted income was $206.7 million compared to $265.3 million a year ago. Adjusted EBITDA was $363.9 million compared to $357.1 million a year ago. Adjusted earnings per share were $1.80 per share compared to $2.23 per diluted share a year ago. Adjusted operating income was $338.8 million compared to $331.0 million a year ago. Adjusted income before income taxes was $304.0 million compared to $295.1 million a year ago.
For the year, the company reported net sales of $7,392.3 million compared to $7,811.2 million a year ago. Operating income was $1,031.5 million compared to $1,145.3 million a year ago. Income before income taxes was $878.4 million compared to $977.9 million a year ago. Net income was $592.3 million or $5.76 per diluted share compared to $688.7 million or $3.33 per diluted share a year ago. Net cash provided by operating activities was $1,059.0 million compared to $1,458.3 million a year ago. Additions to property, plant, and equipment were $192.4 million compared to $201.4 million a year ago. Adjusted income was $895.9 million compared to $931.3 million a year ago. Adjusted EBITDA was $1,593.7 million compared to $1,579.1 million a year ago. Adjusted earnings per share were $7.72 per share compared to $7.79 per diluted share a year ago. Adjusted operating income was $1,481.8 million compared to $1,489.8 million a year ago. Adjusted income before income taxes was $1,328.7 million compared to $1,322.4 million a year ago.
For the fiscal 2018, the company expects adjusted earnings per share expected to range from $7.85 to $8.05, free cash flow of $775 million, capital expenditures of $310 million and effective tax rate of 32.5% to 33.0%. Net sales are expected to increase approximately 1% from fiscal 2017, primarily reflecting higher net price realization. Adjusted earnings per share is expected to range from $7.85 to $8.05, based on 113.6 million shares outstanding, reflecting the company's repurchase of 3.0 million shares in the fourth quarter of fiscal 2017.
The JM Smucker Company specializes in producing and selling food and animal nutrition products. Net sales break down by activity as follows:
- sale of coffee and food products (52.7%): coffee (Folgers® brands, Dunkin' Donuts® and Café Bustelo® brands) peanut butter, jams and jellies, oils, condensed milk, ready-to-use frostings and glazes, flour and baking ingredients, cookies, frozen potatoes, juices and beverages, dessert toppings, syrups, pickles, condiments, etc. (Smucker's®, Jif®, and Uncrustables® brands, etc.);
- sale of animal food products (35.5%): Rachael Ray Nutrish, Meow Mix ®, Milk-Bone®, Kibbles'n Bits®, 9Lives®, Nature's Recipe® and Pup-Peroni® brands;
- other (11.8%).
93.1% of net sales are from the United States.
The J. M. Smucker Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended April 30, 2017; Provides Earnings Guidance for the Year 2018