Orrville, OH-based J.M. Smucker Co. (NYSE: SJM) today announced results for the second quarter of its 2022 fiscal year, ended Oct.31, 2021. Financial results in the quarter reflect the divestitures Crisco on Dec. 1, 2020, and Natural Balance on Jan.29, 2021.
J.M. Smucker Co. Q2 2022 and 2021 comparisons
- Net sales increased $16 million, or 1%. Net sales excluding divestitures and foreign currency exchange increased 8%.
- Net income per diluted share was $1.90, a decrease of 6%. Adjusted earnings per share was $2.43, an increase of 2%.
- Cash from operations was $165.1 million, a decrease of 56%. Free cash flow was $105.9 million, compared with $326.3 million in the prior year.
- The company updated its full-year fiscal 2022 financial outlook.
- Gross profit decreased $106.7 million, or 13%, reflecting higher costs, primarily driven by increased commodity.
"We are pleased with our ability to increase our net sales and adjusted earnings per share expectations for the fiscal year despite increasing cost inflation and continued supply chain disruption," said president and chief executive Mark Smucker.
Smucker food and coffee brands include Folgers, Jif and Milk-Bone, and new lines like Café Bustelo, Smucker's Uncrustables and Rachael Ray Nutrish. The Dunkin' brand is licensed to J.M. Smucker Co. for packaged coffee products.
Accelerating Uncrustables growth
In other news, J.M. Smucker is expecting to sell $1 billion a year in Uncrustables in the near future. The food and coffee company said it will spend $1.1 billion to build a new manufacturing and distribution center in Alabama focused on the frozen (and crust-less) sandwiches, rollups and bites filled with peanut butter and jelly, chocolate hazelnut spread and savory stuffings.
The new facility, in McCalla, southwest of Birmingham, is expected to start going up no later than in January, with production starting in 2025.
"The new facility marks the third manufacturing location dedicated to the Smucker's Uncrustables brand, along with existing facilities in Scottsville, KY, and Longmont, CO," according to a Smucker press release. "This new facility, and a completed expansion at the Longmont location, will support the company's strategy to more than double its current production capacity."
Uncrustables generate $500 million a year in sales for J.M. Smucker.