Jm Smucker Company (the) Stock Earnings Reports

Key points for investors: Net sales were pressured in Q3 by approximately $30 million of supply chain disruptions (primarily U.S. Retail Pet Foods) but issues have been resolved; adjusted EPS beat in the quarter ($2.61, +5% y/y) and management raised the fiscal 2025 adjusted EPS midpoint to $10.00 and increased free cash flow guidance to $925 million. High-growth platforms: Uncrustables (+15% in Q3; management expects >$900M net sales for the brand this fiscal year) and Café Bustelo (+15% in Q3) are driving momentum. Hostess (Sweet Baked Snacks) is underperforming versus expectations, prompting a strategic response including leadership change, portfolio actions, and announced divestiture of certain value brands and a manufacturing facility; this underperformance led to non-cash impairment charges of $794M (goodwill) and $208M (Hostess trademark). Segment trends: Coffee net sales +2% with price increases implemented to offset record-high green coffee costs; Frozen Handhelds aided by Uncrustables; Pet Foods saw supply disruptions but expects return to full distribution in Q4; Sweet Baked Snacks comparable sales down ~8%. Fiscal 2025 guidance: reported net sales ~+7.25% (comparable ~+0.75%), adjusted gross margin ~38%, SD&A +~8% y/y, net interest ~ $390M, adjusted tax rate ~24.1%, free cash flow ~$925M, capex ~$400M. Balance sheet & capital allocation: net debt ~$7.8B, trailing adjusted EBITDA ~$2.2B (leverage ~3.6x); plan to pay down >$800M this fiscal year (including divestiture proceeds) and ~$500M annually thereafter to target ≤3.0x net debt/EBITDA by FY27. Management emphasizes disciplined cost management, prioritized investment behind high-growth platforms, and confidence in long-term cash generation (> $1B target annually).