The J. M. Smucker Company Announces Fiscal 2016 Fourth Quarter Results

June 9, 2016
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ORRVILLE, Ohio, June 9, 2016 /PRNewswire/ -- The J. M. Smucker Company announced results for the fourth quarter ended April 30, 2016, of its 2016 fiscal year.  All comparisons are to the fourth quarter of the prior fiscal year, unless otherwise noted.

Executive Summary

  • Net sales increased 25 percent in the fourth quarter, reflecting the incremental contribution from Big Heart Pet Brands ("Big Heart"), acquired during the fourth quarter of fiscal 2015, and growth within the U.S. Retail Coffee segment.  Net sales adjusted for noncomparable items increased 5 percent.
  • Net income per diluted share increased to $1.61 in the fourth quarter, including a noncash deferred tax benefit of $50.5 million, or $0.42 per share.  This compares to a net loss per diluted share of $0.82 in the prior year, which was impacted by financing activities and purchase accounting adjustments related to the Big Heart acquisition.  For the full year, net income per diluted share was $5.76.
  • Non-GAAP income per diluted share was $1.86 in the fourth quarter, compared to a non-GAAP loss per diluted share of$0.41 in the prior year.  For the full year, non-GAAP income per diluted share was $6.57.  Both current year measures include the $0.42 per share deferred tax benefit.  The full-year measure also includes the $0.15 per share gain on the U.S. canned milk divestiture that occurred in the third quarter.   
  • Cash provided by operating activities was $335.5 million in the fourth quarter, compared to $221.6 million in the prior year.  
  • The Company provided its fiscal 2017 net sales and earnings outlook, with net sales expected to decrease 1 percent.  Adjusted non-GAAP income per diluted share is expected to range from $7.60 to $7.75.  This measure is not comparable to the non-GAAP income per diluted share measure above, as it excludes amortization expense.

Fourth Quarter Segment Results

U.S. Retail Coffee

Segment net sales increased $44.0 million.  Favorable volume/mix contributed 13 percentage points of growth, driven by theDunkin' Donuts® brand.  The Folgers® brand also contributed to favorable volume/mix, as growth for mainstream roast and ground offerings more than offset declines in Folgers® K-Cup® pods.  Favorable volume/mix for the segment was slightly offset by lower net price realization for the Folgers® brand.  Segment profit increased $43.3 million reflecting the net benefit of lower commodity costs and pricing and the contribution from Dunkin' Donuts® K-Cup® pods.  These factors were slightly offset by an increase in marketing expense. 

U.S. Retail Consumer Foods

Segment net sales decreased $9.5 million, reflecting the impact of $31.5 million of noncomparable net sales in the prior year related to the divested U.S. canned milk business.  Excluding the impact of the divestiture, net sales increased 5 percent.  Net price realization was higher, primarily attributable to the Jif® and Pillsbury® brands.  Favorable volume/mix contributed 2 percentage points of growth, driven by Jif® peanut butter and Smucker's® Uncrustables® frozen sandwiches.  Segment profit decreased $5.8 million, primarily reflecting the loss of U.S. canned milk profits. Full report.

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The J.M. Smucker Company specializes in meeting the needs of foodservice professionals. For more than 107 years, the family-owned and -operated company has marketed some of America...