- J M Smucker Co (NYSE:SJM) reported a third-quarter FY21 sales decline of 1% year-on-year, to $2.06 billion, beating the consensus of $2.04 billion. Organic net sales growth was 4%.
- Adjusted EPS of $2.33 beat the Street view of $2.09.
- The gross profit decreased 16% Y/Y to $126.3 million and the gross profit margin contracted by 580 basis points to 33.2%.
- The operating margin dropped 1230 basis points to 7.3%, and operating income for the quarter fell 63% to $150.6 million.
- The company held $284.3 million in cash and equivalents as of January 31, 2022. Cash from operations for the quarter totaled $439.7 million, and the free cash flow was $322.4 million.
- "Looking ahead, we are navigating a dynamic environment led by cost inflation and supply chain disruptions. We expect these pressures to continue in the fourth quarter," said CEO Mark Smucker.
- Outlook: J M Smucker narrowed the FY22 adjusted EPS outlook to $8.35 - $8.65 (prior view $8.35 - $8.75) versus the consensus of $8.57.
- The company also cut FY22 sales growth guidance to (1.5)% - (0.5)% from the prior view of (1.0)% - 0.0%.
- Price Action: SJM shares are trading lower by 5.70% at $127.07 on the last check Tuesday.
