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The J.M. Smucker Company (NYSE: SJM) is a leading American packaged food company celebrated for its commitment to quality and a diverse portfolio of beloved brands. With a primary revenue stream from the U.S. retail channel, which constitutes 77% of its forecast fiscal 2024 revenue, Smucker’s offers products that families across North America trust and enjoy daily.
The company operates in several key categories:
- Coffee: Retail coffee is now Smucker’s largest category, accounting for 33% of sales. Key brands include Folgers and Dunkin'.
- Pet Foods: Contributing 22% of sales, this segment boasts leading brands like Milk-Bone and Meow Mix.
- Consumer Foods: Approximately 22% of sales come from consumer foods, including popular offerings from brands such as Jif and Smucker’s.
Smucker’s has recently acquired Hostess Brands, adding iconic sweet baked snacks such as Twinkies, Ding Dongs, and more to its product lineup. This acquisition is expected to enhance Smucker’s presence in the snack and convenience store segment.
In efforts to streamline its portfolio, the company divested several pet food brands and private-label products, along with the Sahale Snacks® brand and certain pickle brands to other companies. These strategic moves are intended to focus resources and drive sustainable growth.
Financially, Smucker’s reported strong results for its second quarter of fiscal year 2024, despite a 12% decrease in net sales primarily due to divestitures. The company also announced an increase in comparable net sales by 7%, driven by product innovations and strategic price realizations.
Smucker’s continues to innovate, as seen with the launch of new products like the Hostess® HoneyBun Donettes®, combining beloved flavors to meet consumer demand for unique snacking experiences. The company is also introducing limited-time offerings for seasonal occasions, further cementing its market presence.
The company's forward-looking strategy includes integrating Hostess Brands effectively, leveraging synergies, and continuing to lead in its core categories. Committed to sustainable growth, Smucker’s aims to balance profitability with social responsibility, maintaining high standards for product quality and ethical operation.
The J.M. Smucker Co. has finalized the sale of its Natural Balance® premium pet food business to Nexus Capital Management for $50 million. This divestiture, part of the Company’s strategy to focus on core brands, generated net sales of approximately $220 million for the fiscal year ended April 30, 2020. The sale is expected to slightly dilute adjusted earnings per share by $0.05 to $0.10 in the upcoming year. The Company aims to enhance profitability by concentrating on high-potential brands like Rachael Ray® Nutrish and Milk-Bone®.
The J.M. Smucker Co. (SJM) has declared a $0.90 per share dividend, set to be paid on March 1, 2021. Shareholders must be on record by February 12, 2021 to qualify for this payment. This decision reflects the company's commitment to returning value to shareholders amidst evolving consumer preferences.
The Jif Brand has announced the launch of its new Jif Natural Squeeze Creamy Peanut Butter Spread, available online and at select retailers starting January 2021. This product features 90% peanuts and contains no preservatives or GMOs, making it a healthy option for families. The 13 oz. pouch is designed for easy portioning for recipes or direct consumption. It will also be featured in a national advertising campaign. This innovation aims to enhance consumer convenience and expand the Jif product line.
The J.M. Smucker Co. (NYSE: SJM) announced its strategic goals during a virtual investor day on December 10, 2020, focusing on long-term shareholder value. The Company reaffirmed its fiscal year 2021 outlook, projecting net sales growth of flat to 1%, adjusted EPS between $8.35 and $8.65, and free cash flow of $975 million to $1.025 billion. Key priorities include driving revenue growth, transforming capabilities, streamlining costs to save $50 million annually, and reshaping its portfolio. Long-term targets feature a 2% net sales growth and 10% total shareholder return.
Nexus Capital Management has signed an agreement to acquire the Natural Balance premium pet food business from The J.M. Smucker Co. (NYSE: SJM). This transaction marks a significant move in the premium pet food space, with Natural Balance known for high-quality dog and cat food products. Nexus aims to reinvigorate the brand as an independent entity under the leadership of Brian Connolly, who has extensive experience in the industry. The focus will be on innovation and commitment to the pet specialty channel, enhancing growth opportunities for Natural Balance.
The J.M. Smucker Co. (SJM) announced a definitive agreement to sell its Natural Balance premium pet food business to Nexus Capital Management for approximately $50 million, pending a working capital adjustment. The divestiture aims to refocus resources on high-growth core brands such as Rachael Ray Nutrish and Milk-Bone. The business had generated net sales of about $220 million for the fiscal year ending April 30, 2020. While the deal is set to close in Q3 of fiscal year 2021, it is expected to dilute adjusted earnings by $0.05 to $0.10 per share.
The J.M. Smucker Co. has completed the sale of its Crisco® oils and shortening business to B&G Foods for $550 million. The divestiture, which aligns with the company's strategy to exit the U.S. baking category, impacts fiscal 2021 guidance by removing $100 million in net sales and $0.20 in adjusted EPS. The updated guidance expects fiscal 2021 net sales growth of flat to 1 percent and adjusted EPS between $8.35 and $8.65. The company continues to expect free cash flow of $975 million to $1,025 million.
The J.M. Smucker Co. (SJM) reported a 4% increase in net sales to $2.034 billion for Q2 of fiscal 2021, primarily driven by growth in the U.S. Retail Consumer Foods and Coffee segments.
Net income per diluted share rose to $2.02, with adjusted EPS increasing by 6% to $2.39. Cash from operations surged 69% to $378.7 million, while free cash flow grew to $326.3 million.
For fiscal 2021, the company raised its net sales guidance to a 1-2% increase and adjusted EPS to $8.55-$8.85, reflecting strong at-home consumption trends.
The J.M. Smucker Co. (SJM) announced its second quarter fiscal 2021 earnings conference call scheduled for November 24, 2020, at 8:30 a.m. EST. CEO Mark Smucker and CFO Tucker Marshall will present. A press release with financial data will be available at 7:00 a.m. EST on the same day. Additionally, a virtual Investor Day is set for December 10, 2020, featuring management presentations and a Q&A session. Both events will be accessible via the company's investor website.
The J.M. Smucker Co. (SJM) has agreed to sell its Crisco® oils and shortening business to B&G Foods, Inc. for approximately $550 million. This divestiture reflects the company's strategy to exit the U.S. baking category and prioritize pet food, coffee, and snacking sectors. The Crisco brand generated net sales of around $270 million for the fiscal year ending April 30, 2020. The sale is expected to be dilutive to adjusted earnings per share by $0.45 to $0.55 in the full year. The transaction is slated to close in Q3 of fiscal year 2021, subject to customary approvals.
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