J M Smucker Clocks 8% Sales Growth In Q3, Bottom-Line Beats Street View

J M Smucker Co SJM reported third-quarter FY23 sales growth of 8% year-on-year to $2.216 billion, marginally missing the consensus of $2.22 billion.
Adjusted EPS of $2.21 beat the Street view of $2.12.
Gross profit increased 11% Y/Y to $755.8 million and the gross profit margin expanded by 90 basis points to 34.1%.
Operating margin expanded 700 basis points to 14.3%, and operating income for the quarter jumped 111% to $317.9 million.
The company held $104.2 million in cash and equivalents as of Jan. 31, 2023. Cash from operations for the quarter totaled $584.6 million, and the free cash flow was $442.7 million.
Mark Smucker, Chair of the Board, President and CEO, said, "Looking ahead, we will continue to advance our strategic priorities, which have supported our commitment to enhanced prioritization, improved profitability and product mix, and greater organizational agility, positioning us to deliver consistent top-and bottom-line growth and shareholder value."
Outlook: J M Smucker sees FY23 adjusted EPS of $8.55 - $8.75 (prior view $8.35 - $8.75) versus the consensus of $8.60.
The company sees FY23 sales growth of 6% (previous view 5.5% - 6.5%).
Price Action: SJM shares are trading lower by 0.07% at $147.96 on the last check Tuesday.

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