Pet Food Press Releases

The J. M. Smucker Company announces fiscal 2021 first quarter results

The J. M. Smucker Company (announced results for the first quarter ended July 31, 2020, of its 2021 fiscal year. All comparisons are to the first quarter of the prior fiscal year, unless otherwise noted.


·       Net sales increased $192.9 million, or 11 percent, with growth across each of the Company's U.S. and International retail businesses, partially offset by a decline for its Away From Home business. 

·       Net income per diluted share was $2.08. Adjusted earnings per share was $2.37, an increase of 50 percent. 

·       Cash from operations was $409.0 million, an increase of 85 percent. Free cash flow was $332.4 million, compared to $148.5 million in the prior year. 

·       The Company increased its full-year fiscal 2021 net sales, adjusted earnings per share, and free cash flow outlook.


"I am incredibly proud and thankful for our employees, who have adapted quickly to deliver strong results and serve our constituents in an environment marked by the COVID-19 pandemic and social unrest. We continue to ensure employee safety and well-being, support the communities where we do business, and provide a steady, quality supply of food for consumers and their pets," said Mark Smucker, President and Chief Executive Officer.

"Our first quarter results exceeded our expectations, particularly for the coffee and consumer foods portfolios. Consumers continued to seek out trusted and iconic brands as we achieved strong growth across nearly all our categories. This exceptional performance highlights the strength of our portfolio, the potential of our consumer-centric growth strategy, and our commitment to operate with financial discipline."

"We expect continued momentum in the second quarter and are pleased to raise our full-year guidance. We remain confident in our ability to deliver on our fiscal year 2021 goals, advance our long-term strategy, and deliver increased shareholder value."









% Increase 



(Dollars and shares in millions, except per share data)


Net sales








Operating income







Adjusted operating income








Net income per common share – assuming dilution







Adjusted earnings per share – assuming dilution








Weighted-average shares outstanding – assuming dilution






Net Sales

Net sales increased 11 percent, driven by favorable volume/mix across all the Company's retail businesses, supported by increased at-home consumption for the U.S. Retail Coffee and U.S. Retail Consumer Foods segments, partially offset by reduced volume/mix for the Away From Home business. Net price realization and foreign currency exchange were neutral.

Operating Income

Gross profit increased $75.8 million, or 11 percent, driven by the increased contribution from volume/mix and lower costs, partially offset by an unfavorable change in unallocated derivative gains and losses as compared to the prior year. Operating income increased $103.5 million, or 40 percent, primarily reflecting the increase in gross profit and a $23.0 million decrease in selling, distribution, and administrative ("SD&A") expenses.

Adjusted gross profit increased $88.6 million, or 13 percent, with the difference from generally accepted accounting principles ("GAAP") results being the exclusion of unallocated derivative gains and losses. Adjusted operating income increased $113.8 million, or 39 percent, further reflecting the exclusion of other special project costs and amortization.

Interest Expense, Other Income (Expense), and Income Taxes

Net interest expense decreased $3.3 million, primarily as a result of a decrease in interest rates and reduced debt outstanding, partially offset by interest expense related to interest rate contracts terminated in the fourth quarter of the prior year.

The effective income tax rate was 24.4 percent compared to 25.2 percent in the prior year.

Cash Flow and Debt

Cash provided by operating activities was $409.0 million, compared to $221.5 million in the prior year, primarily reflecting a decrease in cash required to fund working capital and an increase in net income adjusted for noncash items. The decrease in working capital requirements was primarily attributable to lower payments for accounts payable driven by working capital initiatives. Free cash flow was $332.4 million, compared to $148.5 million in the prior year, reflecting the increase in cash provided by operating activities, slightly offset by a $3.6 million increase in capital expenditures. Net debt repayments in the quarter totaled $252.2 million.


The Company updated its full-year fiscal 2021 guidance as summarized below:





Net sales change vs prior year


0% - 1%


(2)% - (1)%

Adjusted earnings per share


$8.20 - $8.60


$7.90 - $8.30

Free cash flow (in millions)


$925 - $975


$900 - $950

Capital expenditures (in millions)





Effective tax rate





The outbreak of COVID-19 continues to impact financial results and cause uncertainty for the full-year fiscal 2021 projections. This guidance reflects expectations based on the Company's current performance and understanding of the overall environment.

Net sales are expected to range from flat to up 1 percent compared to the prior year. This reflects elevated at-home consumption and retailer inventory re-stocking in the first quarter primarily benefiting the U.S. Retail Coffee and U.S. Retail Consumer Foods segments, with net sales growth anticipated to moderate throughout the remainder of the fiscal year. This net sales growth will be partially offset by a decline for the Company's Away From Home business and the lapping of a $185 million incremental benefit to net sales related to COVID-19 in the fourth quarter of the prior year.

Adjusted earnings per share is expected to range from $8.20 to $8.60, based on 114.1 million shares outstanding. Earnings guidance reflects the contribution from sales at a gross profit margin range of 37.5 to 38.0 percent, SD&A expenses to increase 1 to 2 percent compared to the prior year, and an effective tax rate of 24.0 percent. Free cash flow is expected to range from $925 to $975 million.


Effective during the first quarter of fiscal year 2021, the presentation of International and Away From Home represents a combination of all other operating segments that are not individually reportable. As a result of recent leadership changes, these operating segments are now being managed and reported separately, and no longer represent a reportable segment for segment reporting purposes. Prior year segment results have not been modified, as the combination of these operating segments represents the previously reported International and Away From Home reportable segment.

(Dollar amounts in the segment tables below are reported in millions.)

U.S. Retail Pet Foods










FY21 Q1 Results







Increase (decrease) vs prior year







Net sales increased $22.7 million, reflecting a 5 percentage point improvement due to volume/mix. The contribution from volume/mix primarily reflects growth for 9Lives and Meow Mix cat food and Milk-Bone dog snacks, partially offset by decreases primarily related to Natural BalanceNature's Recipe  and private label dog food. Lower net price realization reduced net sales by 2 percentage points, primarily reflecting increased trade spend for dog food and cat food.

Segment profit increased $5.2 million, driven by lower manufacturing costs, the increased volume/mix, and lower SD&A expenses, partially offset by lower pricing.

U.S. Retail Coffee










FY21 Q1 Results







Increase (decrease) vs prior year







Net sales grew $105.2 million, reflecting a 23 percentage point increase from volume/mix. Favorable volume/mix was driven by Dunkin' DonutsFolgers, and Café Bustelo coffee, reflecting elevated at-home consumption and re-stocking of retailer inventory following the surge in consumer demand in the fourth quarter of the prior year. Net price realization was neutral.

Segment profit increased $53.7 million, primarily due to the favorable volume/mix.

U.S. Retail Consumer Foods










FY21 Q1 Results







Increase (decrease) vs prior year







Net sales increased $87.0 million, reflecting a 19 percentage point increase from volume/mix driven by growth for the Smucker's brand, inclusive of Uncrustables frozen sandwiches and fruit spreads, Crisco oils and shortening, and Jif peanut butter. The increase in volume/mix includes growth due to elevated at-home consumption and retailer inventory re-stocking following the surge in consumer demand in the fourth quarter of the prior year. Higher net pricing increased net sales by 3 percentage points, primarily attributable to reduced promotional activity for Jif peanut butter and Smucker's fruit spreads.

Segment profit increased $50.5 million, primarily reflecting the contribution from volume/mix, higher net pricing, and lower SD&A expenses.

International and Away From Home










FY21 Q1 Results







Increase (decrease) vs prior year







Net sales decreased $22.0 million, primarily reflecting a 33 percent decline for the Company's Away From Home operating segment, partially offset by net sales growth of 21 percent for the International operating segment, most notably for flour and baking ingredients. Volume/mix for the combined businesses reduced net sales by 8 percentage points and foreign currency exchange reduced net sales by 1 percentage point. Net price realization was neutral.

Segment profit decreased $1.4 million, primarily reflecting higher input costs and the decline from volume/mix, partially offset by reduced SD&A expenses.

Conference Call

The Company will conduct an earnings conference call and webcast today, August 25, 2020, beginning at 8:30 a.m. Eastern time. Speaking on the call will be Mark Smucker, President and Chief Executive Officer and Tucker Marshall, Chief Financial Officer. To access the webcast, please visit

The J. M. Smucker Company Forward-Looking Statements

This press release contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by those forward-looking statements. The risks, uncertainties, important factors, and assumptions listed and discussed in this press release, which could cause actual results to differ materially from those expressed, include: the impact of the COVID-19 pandemic on the Company's business, industry, suppliers, customers, consumers, employees, and communities, particularly with respect to the Company's Away From Home business; disruptions or inefficiencies in the Company's operations or supply chain, including any impact of the COVID-19 pandemic; the ability to achieve cost savings related to cost management programs in the amounts and within the time frames currently anticipated; the ability to generate sufficient cash flow to continue operating under the Company's capital deployment model, including capital expenditures, debt repayment, dividend payments, and share repurchases; volatility of commodity, energy, and other input costs; risks associated with derivative and purchasing strategies the Company employs to manage commodity pricing and interest rate risks; the availability of reliable transportation on acceptable terms; the ability to implement and realize the full benefit of price changes, and the impact of the timing of the price changes to profits and cash flow in a particular period; the success and cost of marketing and sales programs and strategies intended to promote growth in the Company's businesses, including product innovation; general competitive activity in the market, including competitors' pricing practices and promotional spending levels; the impact of food security concerns involving either the Company's products or its competitors' products; the impact of accidents, extreme weather, natural disasters, and pandemics (such as COVID-19); the concentration of certain of the Company's businesses with key customers and suppliers, including single-source suppliers of certain key raw materials and finished goods, and the Company's ability to manage and maintain key relationships; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets or changes in useful lives of other intangible assets or other long-lived assets; the impact of new or changes to existing governmental laws and regulations and their application, including tariffs; the outcome of tax examinations, changes in tax laws, and other tax matters; foreign currency exchange rate and interest rate fluctuations; and risks related to other factors described under "Risk Factors" in other reports and statements filed with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K. The Company undertakes no obligation to update or revise these forward-looking statements, which speak only as of the date made, to reflect new events or circumstances.