The J. M. Smucker Company (NYSE: SJM) today announced results for the second quarter ended October 31, 2018, of its 2019 fiscal year. Financial results for the second quarter and first six months of 2019 include the contribution from Ainsworth Pet Nutrition, LLC("Ainsworth"), which was acquired on May 14, 2018, and reflect the divestiture of the Company's U.S. baking business on August 31, 2018. All comparisons are to the second quarter of the prior fiscal year, unless otherwise noted.
EXECUTIVE SUMMARY
- Net sales increased $97.9 million, or 5 percent, led by the addition of Ainsworth and the Company's growth brands.
- Net income per diluted share was $1.66. Adjusted earnings per share was $2.17, an increase of 7 percent.
- Fiscal 2019 second quarter results include a $26.6 million pre-tax gain related to the divestiture of the U.S. baking business. The effective tax rate of 30.0 percent reflects the tax impact associated with the sale of the baking business.
- Free cash flow was $125.1 million in the second quarter and $266.8 million through the first half of the fiscal year.
- The Company updated its full-year fiscal 2019 net sales, adjusted earnings per share, and free cash flow outlook.
CHIEF EXECUTIVE OFFICER REMARKS
"Our net sales increase was supported by the positive contribution from the acquired Rachael Ray® Nutrish® brand," noted Mark Smucker, Chief Executive Officer. "We also realized strong sales gains across many of our growth brands, including Smucker's® Uncrustables®, Nature's Recipe®, and Café Bustelo®. We are focused on growing brands consumers love in the pet food, coffee, and snacking categories, as highlighted by the completion of the U.S. baking business divestiture during the quarter. While the income taxes related to the sale of the baking business impacted our earnings per share, we were pleased with the business results for the quarter. Ongoing execution of our strategy for both growth and core brands is essential to delivering long-term shareholder value."
