J M Smucker Co (NYSE:SJM) announced results for the fourth quarter of its 2020 fiscal year ending April 30.
The jam giant out of Orrville, Ohio reported Thursday revealed net sales increased $189.9 million, or 10%, driven by increased consumer demand resulting from the COVID-19 pandemic.
Gross profit increased $96.0 million, or 14 percent, driven by the increased contribution from volume/mix and reduced input costs, partially offset by lower net pricing. Operating income increased $193.1 million, or 126 percent, primarily attributable to a $97.9 million goodwill impairment charge in the prior year and the increase in gross profit.
Selling, distribution, and administrative expenses increased $3.6 million, including incremental expenses related to COVID-19, primarily for employee compensation and benefits as well as community support initiatives.
Net income per diluted share was $1.98. Adjusted earnings per share were $2.57, an increase of 24%.
Cash from operations was $287.7 million compared to $274.2 million in the prior year. Free cash flow was $211.3 million in the quarter.
CEO Mark Smucker said "I am extremely proud and thankful for how our employees have responded during the COVID-19 pandemic. We ensured our employee safety and well-being, supported the communities where we do business, maintained our product quality standards, and partnered with our suppliers and retailers to provide a steady supply of food for consumers and their pets.”
Shares gave back $4.46, or 3.9%, to $110.13.
