ORRVILLE, Ohio, Aug. 23, 2016 /PRNewswire/ -- The J. M. Smucker Company announced results for the first quarter ended July 31, 2016, of its 2017 fiscal year. All comparisons are to the first quarter of the prior fiscal year, unless otherwise noted.
Executive Summary
- Net sales decreased 7 percent, reflecting the impact of the divested U.S. canned milk business and price declines.
- Net income per diluted share increased 28 percent to $1.46.
- Adjusted earnings per share was $1.86, an increase of 16 percent, reflecting incremental synergy realization, a lower tax rate, and fewer shares outstanding.
- Synergy realization was $32 million in the first quarter as the Company remains on track to achieve $100 million of incremental synergies in fiscal 2017.
- Cash provided by operating activities was $238.9 million in the first quarter, compared to $307.0 million in the prior year.
- The Company maintained its full-year fiscal 2017 earnings outlook, with adjusted earnings per share expected to range from $7.60 to $7.75.
Chief Executive Officer Remarks
"We are pleased with the start to our fiscal year as we delivered record first quarter earnings per share, which exceeded our expectations," said Mark Smucker, Chief Executive Officer. "Despite the impact of deflation on the top line, we remain on track to achieve our original expectations for full-year earnings per share. We are strengthening a great portfolio of brands by investing in new capabilities and on-trend platforms that are essential to long-term sales growth. At the same time, we are focused on sustainable cost reductions that are delivering significant bottom-line benefits. For these reasons, we remain confident in achieving our long-term objectives and delivering continued shareholder value."
First Quarter Segment Results
U.S. Retail Coffee
Segment net sales decreased $51.7 million, reflecting lower net price realization, which was primarily attributed to the impact of two 6 percent list price declines since the beginning of fiscal 2016. Favorable volume/mix for the Folgers® and Café Bustelo®brands was offset by declines for Dunkin' Donuts® K-Cup® pods, which were anticipated following the successful introduction of the product line at the beginning of fiscal 2016. Segment profit was comparable to the prior year primarily due to lower commodity costs and favorable Folgers® volume/mix being offset by lower net price realization and the reduced contribution from Dunkin' Donuts® K-Cup® pods. Full report.
