J M Smucker Posts Q1 Earnings Above Street View; Raises FY23 Outlook

J M Smucker Co SJM reported first-quarter FY23 sales growth of 1% year-on-year to $1.873 billion, marginally above the consensus.
Net sales excluding divestitures and foreign currency exchange increased 4%.
Adjusted EPS of $1.67 beat the analyst consensus of $1.27.
Gross profit decreased 14% Y/Y to $552.5 million and the gross margin contracted by 490 basis points to 29.5%.
The operating margin contracted 440 basis points to 9.6%, and operating income for the quarter fell 31% to $179.7 million.
The company held $151.6 million in cash and equivalents as of July 31, 2022. Cash used in operating activities totaled $(39) million with a free cash flow of $(127.3) million.
Outlook: J M Smucker raised FY23 adjusted EPS guidance to $8.20 - $8.60 from $7.85 - $8.25 (consensus $8.04). It sees net sales increase to be 4% - 5% from the previous outlook of 3.5% - 4.5%.
Price Action: SJM shares are trading higher by 2.52% at $141.22 on the last check Tuesday.