J.M. Smucker Co (SJM), a well-established food manufacturer known for its wide variety of products such as fruit spreads, ice cream toppings, and beverages, has been aggressively pursuing restructuring measures to streamline its operations and reduce overall expenses. In its latest SEC filing, the company revealed significant cost savings from these efforts, which have the potential to increase shareholder value.
Throughout the fiscal year ending April 2023, the company recorded restructuring charges attributed to cost-saving initiatives, coupled with increased investment in machinery and equipment for its production facilities. These strategic moves indicate that SJM is actively working to optimize its resources and adapt to rapidly changing market conditions and consumer preferences.
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Restructuring measures implemented include a focus on consolidating and improving the efficiency of the supply chain, as well as reducing redundancy in organizational structures. This has led to the streamlining of its operations, which could significantly improve overall profitability. The benefits of these restructuring efforts have already been experienced by the company in decreased selling, distribution, and administrative expenses, which is a positive sign for investors.
Furthermore, J.M. Smucker’s investment in state-of-the-art machinery and equipment has boosted its production capabilities and could lead to increased financial performance in the long run. The company’s assets in machinery and equipment showed steady growth in the reported period, indicating its commitment to technological advancements in its production processes.
This increased investment also reflects the company’s commitment to maintaining and improving its existing product lines while enabling the development and innovation of new products. Renewed focus on product innovation allows the company to cater to the evolving preferences of its customers, helping it maintain its competitive edge in the market.
J.M. Smucker’s recent acquisition of pet food brands reflects its ambition for growth and diversification. The company’s U.S. Retail Pet Foods segment, which includes popular brands like Meow Mix and Milk-Bone, has seen continuous growth and is expected to contribute significantly to its overall revenue.
To further strengthen its position in this market, the company has also made significant investments in the pet food industry, acquiring several pet food brands, and even announced plans to acquire Mountain Country Foods, a private label dry pet food manufacturer, to expand its portfolio in the pet food space. These strategic acquisitions could lead to accelerated growth and higher profitability for the company in the coming years.
Finally, J.M. Smucker’s healthy relationship with major retailers such as Walmart only serves to bolster its growth prospects. With Walmart accounting for a substantial portion of SJM’s revenue, this collaboration is crucial for ensuring the company’s products are readily available to consumers across the country.
In conclusion, J.M. Smucker Co’s restructuring efforts and investment in its production capabilities indicate the company’s dedication to streamlining its operations and improving shareholder value. The shift toward more efficient processes, coupled with a commitment to product innovation, is likely to have a positive impact on the company’s financial performance in the coming years. Furthermore, the expansion into the pet food industry through strategic acquisitions shows the company’s optimistic outlook on new growth opportunities, positioning it well for future success.
Income Statement
Financials in millions USD. Fiscal year is May – April. source
| Year | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 – 1992 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | Revenue | 8529.2 | 7998.9 | 8002.7 | 7801 | 7838 | 7357.1 | 7392.3 | 7811.2 | 5692.7 | 5610.6 | Upgrade |
| 1 | Revenue Growth (YoY) | 6.63% | -0.05% | 2.59% | -0.47% | 6.54% | -0.48% | -5.36% | 37.21% | 1.46% | -4.87% | Upgrade |
| 2 | Cost of Revenue | 5727.4 | 5298.2 | 4864 | 4799 | 4922.3 | 4521 | 4557 | 4843.4 | 3724 | 3579.6 | Upgrade |
| 3 | Gross Profit | 2801.8 | 2700.7 | 3138.7 | 3002 | 2915.7 | 2836.1 | 2835.3 | 2967.8 | 1968.7 | 2031 | Upgrade |
| 4 | Selling, General & Admin | 1455 | 1360.3 | 1523.1 | 1474.3 | 1508.6 | 1362.9 | 1379.6 | 1510.3 | 1031.3 | 988.8 | Upgrade |
| 5 | Other Operating Expenses | 1189.3 | 316.6 | 228.8 | 304.6 | 478.5 | 429.2 | 413.1 | 312.2 | 165.4 | 123.2 | Upgrade |
| 6 | Operating Expenses | 2644.3 | 1676.9 | 1751.9 | 1778.9 | 1987.1 | 1792.1 | 1792.7 | 1822.5 | 1196.7 | 1112 | Upgrade |
| 7 | Operating Income | 157.5 | 1023.8 | 1386.8 | 1223.1 | 928.6 | 1044 | 1042.6 | 1145.3 | 772 | 919 | Upgrade |
| 8 | Interest Expense / Income | 152 | 160.9 | 177.1 | 189.2 | 207.9 | 174.1 | 163.1 | 171.1 | 79.9 | 79.4 | Upgrade |
| 9 | Other Expense / Income | 14.7 | 19.1 | 37.8 | 7.2 | 19.1 | 8.9 | 1.1 | -3.7 | 169.1 | -10.1 | Upgrade |
| 10 | Pretax Income | -9.2 | 843.8 | 1171.9 | 1026.7 | 701.6 | 861 | 878.4 | 977.9 | 523 | 849.7 | Upgrade |
| 11 | Income Tax | 82.1 | 212.1 | 295.6 | 247.2 | 187.2 | -477.6 | 286.1 | 289.2 | 178.1 | 284.5 | Upgrade |
| 12 | Net Income | -91.3 | 631.7 | 876.3 | 779.5 | 514.4 | 1338.6 | 592.3 | 688.7 | 344.9 | 565.2 | Upgrade |
| 13 | Net Income Growth | – | -27.91% | 12.42% | 51.54% | -61.57% | 126.00% | -14.00% | 99.68% | -38.98% | 3.86% | Upgrade |
| 14 | Shares Outstanding (Basic) | 107 | 108 | 110 | 114 | 114 | 114 | 116 | 120 | 102 | 104 | Upgrade |
| 15 | Shares Change | -1.68% | -1.03% | -3.90% | 0.26% | 0.13% | -2.44% | -2.71% | 17.61% | -1.86% | -3.33% | Upgrade |
| 16 | EPS (Basic) | -0.86 | 5.84 | 7.79 | 6.84 | 4.52 | 11.79 | 5.11 | 5.77 | 3.33 | 5.42 | Upgrade |
| 17 | EPS (Diluted) | -0.86 | 5.83 | 7.79 | 6.84 | 4.52 | 11.78 | 5.10 | 5.76 | 3.33 | 5.42 | Upgrade |
| 18 | EPS Growth | – | -25.16% | 13.89% | 51.33% | -61.63% | 130.98% | -11.46% | 72.97% | -38.56% | 8.40% | Upgrade |
| 19 | Free Cash Flow Per Share | 6.72 | 6.63 | 11.48 | 8.64 | 6.87 | 8.01 | 7.45 | 10.56 | 4.85 | 5.66 | Upgrade |
| 20 | Dividend Per Share | 5.070 | 3.870 | 3.580 | 3.490 | 3.330 | 3.090 | 2.920 | 2.650 | 2.500 | 2.260 | Upgrade |
| 21 | Dividend Growth | 31.01% | 8.10% | 2.58% | 4.80% | 7.77% | 5.82% | 10.19% | 6.00% | 10.62% | 10.78% | Upgrade |
| 22 | Gross Margin | 32.85% | 33.76% | 39.22% | 38.48% | 37.20% | 38.55% | 38.35% | 37.99% | 34.58% | 36.20% | Upgrade |
| 23 | Operating Margin | 1.85% | 12.80% | 17.33% | 15.68% | 11.85% | 14.19% | 14.10% | 14.66% | 13.56% | 16.38% | Upgrade |
| 24 | Profit Margin | -1.07% | 7.90% | 10.95% | 9.99% | 6.56% | 18.19% | 8.01% | 8.82% | 6.06% | 10.07% | Upgrade |
| 25 | Free Cash Flow Margin | 8.41% | 8.99% | 15.72% | 12.63% | 9.97% | 12.36% | 11.73% | 16.18% | 8.68% | 10.47% | Upgrade |
| 26 | Effective Tax Rate | – | 25.14% | 25.22% | 24.08% | 26.68% | -55.47% | 32.57% | 29.57% | 34.05% | 33.48% | Upgrade |
| 27 | EBITDA | 573.8 | 1463.8 | 1801.5 | 1662.4 | 1355.8 | 1448.2 | 1460.5 | 1579.1 | 870.1 | 1185.5 | Upgrade |
| 28 | EBITDA Margin | 6.73% | 18.30% | 22.51% | 21.31% | 17.30% | 19.68% | 19.76% | 20.22% | 15.28% | 21.13% | Upgrade |
| 29 | Depreciation & Amortization | 431 | 459.1 | 452.5 | 446.5 | 446.3 | 413.1 | 419 | 430.1 | 267.2 | 256.4 | Upgrade |
| 30 | EBIT | 142.8 | 1004.7 | 1349 | 1215.9 | 909.5 | 1035.1 | 1041.5 | 1149 | 602.9 | 929.1 | Upgrade |
| 31 | EBIT Margin | 1.67% | 12.56% | 16.86% | 15.59% | 11.60% | 14.07% | 14.09% | 14.71% | 10.59% | 16.56% | Upgrade |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!