The J. M. Smucker Company (SJM) Q4 2021 earnings summary

Executive summary

• Record FY21 net sales, profits, and cash flow; growth reflected strong brand execution and elevated at-home consumption.

• Net sales reached $8.0B, up 3%; adjusted EPS was $9.12, up 4%, and free cash flow was $1.26B, up 28%.

• Portfolio actions sharpened strategic focus; Crisco and Natural Balance were divested, while sales transformation and cost-efficiency initiatives advanced.

Financial highlights

• Net sales were $8,002.7M vs. $7,801.0M, up 3%; excluding divestitures and FX, sales increased 5% to $7,995.0M.

• Gross profit was $3,138.7M, up 5%; gross margin was 39.2% vs. 38.5%.

• Operating income was $1,386.8M, up 13%; adjusted operating income was $1,343.5M vs. $1,312.3M, up 1%.

• Net income was $876.3M vs. $779.5M; diluted EPS was $7.79 vs. $6.84, while adjusted diluted EPS was $9.12 vs. $8.76.

• Operating cash flow was $1,565.0M; free cash flow was $1,258.3M vs. $985.5M.

Outlook and guidance

• FY22 priorities include stronger commercial execution, profitability and cost discipline, portfolio optimization, productivity, and improved organizational agility.

• FY22 expected effective tax rate is ~24.0%; elevated at-home demand was expected to continue to a lesser extent into early FY22.

• Long-term objectives: average annual net sales growth of 2%, adjusted operating income growth of 5%, and adjusted EPS growth of 8%.