J M Smucker's Q3: Sales Decline, Operating Loss And More

J M Smucker Co SJM reported third-quarter FY25 sales decline of 2% year-on-year to $2.19 billion, missing the analyst consensus estimate of $2.22 billion.

Gross profit for the quarter increased 7% to $878.1 million and the gross margin expanded 330 basis points to 40.2%.

The company reported an operating loss of $594 million compared to an operating income of $297.4 million.

Adjusted EPS of $2.61 beat the analyst consensus estimate of $2.37. Operating cash flow totaled $239.4 million with a free cash flow was $151.3 million.

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The company held $47.2 million in cash and equivalents as of January 31, 2025.

“Net sales for the quarter would have been above our expectations, however, we experienced certain supply chain disruptions that negatively impacted results. Disciplined cost management and execution enabled us to deliver adjusted earnings per share that exceeded our expectations,” said Chair of the Board, President, and CEO Mark Smucker.

Outlook: J M Smucker lowered the FY25 sales growth outlook from 7.50% – 8.50% to 7.25%.

However, the company raised the FY25 adjusted EPS guidance from $9.70 – $10.10 to $9.85 – $10.15.

Capital expenditure for the year is expected to be $400 million – $450 million.

Price Action: SJM shares are trading higher by 0.59% at $109.81 at last check Thursday.

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