J M Smucker Co (NYSE: SJM) reported quarterly earnings before Tuesday’s opening bell.
The company, based in Orrville, Ohio, cautioned that financial results include the contribution from Ainsworth Pet Nutrition, LLC, acquired in May of last year, and reflect the divestiture of the Company's U.S. baking business last summer.
Smucker said net sales decreased $123.6 million, or 6%. Comparable net sales decreased 4%. Net income per diluted share was $1.36. Adjusted earnings per share proved $1.58, a decrease of 11%.
Gross profit increased $21.4 million, or 3%, primarily driven by a favorable net impact of lower prices and lower costs and the non-comparable benefit of the Ainsworth acquisition, partially offset by a decline in volume/mix and the impact of the U.S. baking business divestiture.
Cash from operations was $221.5 million, a decrease of 9%. Free cash flow was $148.5 million in the quarter, compared to $141.7 million in the prior year. The Company updated its full-year fiscal 2020 net sales and adjusted earnings per share outlook.
CEO Mark Smucker commented, "Our first quarter performance fell short of our expectations primarily due to the timing of shipments and deflationary pricing in the coffee and peanut butter categories, as well as competitive activity in the premium dog food category.”
Net interest expense decreased $4.2 million, reflecting the benefit of reduced debt due to net repayments of $934.0 million during the last 12 months.
Shares descended $9.65, or 8.6%, to $103.28
