J.M. Smucker Reports Decrease In Fourth Quarter 2013 Net Sales

The J. M. Smucker Co. announced results for the fourth quarter and year ended April 30, 2013. Results for the years ended April 30, 2013 and 2012, include the operations of the North American foodservice coffee and hot beverage business acquired from Sara Lee Corp. since the completion of the acquisition on Jan. 3, 2012.

Fourth quarter net sales decreased 1 percent in 2013, compared to 2012, reflecting price declines taken earlier in fiscal 2013. Overall volume increased 2 percent for the same period driven by increases of 6 and 4 percent in the U.S. retail coffee and U.S. retail consumer foods segments, respectively.

Operating income excluding the impact of restructuring, merger and integration, and certain pension settlement costs (special project costs) increased 5 percent in the fourth quarter of 2013, compared to 2012, as the company benefited from strong results in its U.S. Retail Coffee segment.

Net income excluding special project costs increased 13 percent in the fourth quarter of 2013, compared to 2012, reflecting the increase in operating income as well as a lower effective tax rate.

Fourth quarter net income per diluted share, excluding special project costs, increased 17 percent in 2013, compared to 2012, which includes the benefit from the company's share repurchase activities over the past year.

"Our momentum continued through a strong fourth quarter, as we achieved record sales, earnings, and operating cash flow for the full fiscal year," said Richard Smucker, chief executive officer in a prepared statement. "The record results we reported were achieved while also making significant investments toward our future growth and creating value for shareholders. In 2013, we increased the annual dividend paid per share by nine percent, while also repurchasing nearly four percent of our shares. Our long-term focus, strong consumer-relevant brands, robust innovation, and dedicated employees are keys to this success."

"Our fourth quarter results reflect the sustained momentum realized across our business, particularly in key categories such as coffee, peanut butter, and fruit spreads," added Vince Byrd, president and chief operating officer. "Combining strong brand building, innovation, and productivity initiatives with an ability to quickly adapt to market conditions has created a platform for growth. We are well positioned to continue our history of delivering shareholder value."