The J. M. Smucker Company 2018 Fourth Quarter Results, Fiscal 2019 Outlook
ORRVILLE, Ohio, June 7, 2018 -- The J. M. Smucker Company announced results for the fourth quarter ended April 30, 2018, of its 2018 fiscal year. All comparisons are to the fourth quarter of the prior fiscal year, unless otherwise noted.
EXECUTIVE SUMMARY
- Net sales were comparable to the prior year.
- Net income per diluted share was $1.64. Adjusted earnings per share was $1.93, an increase of 7 percent. Both fiscal 2018 fourth quarter measures included a $0.10 per share impact from a charge related to pet food recalls and financing costs related to the Ainsworth Pet Nutrition LLC ("Ainsworth") acquisition.
- For the full year, net income per diluted share was $11.78, which included a substantial nonrecurring benefit related to U.S. income tax reform. Adjusted earnings per share was $7.96.
- Cash provided by operating activities was $314.4 million in the fourth quarter, compared to $264.2 million in the prior year.
- Free cash flow was $202.8 million in the quarter and $896.1 million for the full year.
- The Company provided its fiscal 2019 outlook, with adjusted earnings per share expected to range from $8.40 to $8.65.
CHIEF EXECUTIVE OFFICER REMARKS
"While fourth quarter adjusted earnings per share was below our projections due to industry-wide headwinds and certain discrete items, the actions we are taking to align our portfolio for growth set up our business to win," said Mark Smucker, Chief Executive Officer. "In the past few months, we brought 1850™ premium coffee and Jif®PowerUps™ snacks to market, innovations created in response to changing consumer preferences. We acquired Ainsworth, thereby strengthening our pet food portfolio with the addition of the high-growth, on-trend Rachael Ray®Nutrish® premium pet food brand. We also announced plans to explore a potential divestiture of our U.S. baking business, underscoring our commitment to regularly evaluate our portfolio and emphasizing our focus towards growing the coffee, snacking, and pet food categories. Further, we have executed on our cost reduction programs, which have fueled investments for key growth brands such as Dunkin' Donuts®, Smucker's® Uncrustables®, and Nature's Recipe®. As we continue to transform our Company, we are confident in our ability to deliver against our strategic objectives and enhance long-term shareholder value."