Thu, Jun. 9, 7:23 AM
- J.M. Smucker (NYSE:SJM) reports net sales rose 25% in FQ4 reflecting the contribution of Big Heart Pet Brands and growth within the U.S. retail coffee segment.
- Excluding acquisitions and foreign currency exchange net sales expanded 5%.
- Revenue by segment: U.S. Retail Coffee: $512.6M (+9%); U.S. Retail Consumer Foods: $473.7M (-2%); U.S. Retail Pet Foods: $562.9M; International and Foodservice: $258.4M (-1%).
- Adjusted gross margin rate improved 590 bps to 37.7%.
- Total SD&A expenses rate fell 40 bps to 19.5%.
- Adjusted operating margin rate grew 590 bps to 15.5%.
- EBITDA margin was 19.8% vs -1.5% in 4Q15.
- FY2017 Guidance: Net sales: -1% Y/Y; Diluted EPS: $5.85 to $6; Adjusted non-GAAP EPS: $7.60 - $7.75; Tax rate: 34%; Free cash flow: $1B; Capex: $240M.
Tue, Feb. 23, 8:35 AM
- J.M. Smucker (NYSE:SJM) reports net sales increased 37% in FQ3 reflecting the contribution of Big Heart Pet Brands.
- Excluding acquisitions and foreign currency exchange net sales declined 1%.
- Revenue by segment: U.S. Retail Coffee: $575.5M (+1%); U.S. Retail Consumer Foods: $569.8M (-5%); U.S. Retail Pet Foods: $570.9M; International and Foodservice: $257.7M (-4%).
- Adjusted gross margin rate improved 310 bps to 38.5%.
- Total SD&A expenses rate grew 280 bps to 19.3%.
- Adjusted operating margin rate rose 80 bps to 18%.
- EBITDA margin dropped 50 bps Y/Y to 21.6%.
- FY2016 Guidance: Net sales: $7.8B; Non-GAAP EPS: $5.84 - $5.94; Adjusted non-GAAP EPS: $6.99 - $7.09; Free cash flow: $975M; Capex: $240M.
Nov. 19, 2015, 2:51 PM
- Shares of J. M. Smucker (SJM +7.3%) rally after strong demand for coffee helps to boost Q3 results.
- The company cited double-digit volume gains for the Folgers brand and a solid contribution from Dunkin' Donuts K-Cup pods sales. Revenue grew slower than volume in the quarter due to some pricing pressure.
- Previously: J. M. Smucker beats by $0.11, revenue in-line (Nov. 19)
- Previously: More on J.M. Smucker's FQ2 (Nov. 19)
Nov. 19, 2015, 7:42 AM
- J.M. Smucker (NYSE:SJM) reports net sales rose 40% in FQ2 due to acquisition of Big Heart Pet Brands and growth within the U.S. Retail Coffee segment.
- Net sales excluding acquisitions and foreign currency exchange grew 2%.
- Revenue by segment: U.S. Retail Coffee: $586.1M (+10%); U.S. Retail Consumer Foods: $644M (-3%); U.S. Retail Pet Foods: $566.7M; International and Foodservice: $280.9M (-1%).
- Adjusted gross margin rate improved 200 bps to 37.7%.
- Total SG&A expenses rate +180 bps to 18.8%.
- Adjusted operating margin rate declined 50 bps to 16.4%.
- EBITDA margin decreased 130 bps Y/Y to 20.2%.
- FY2016 Guidance: Net sales: $7.9B; Non-GAAP EPS: $5.70 - $5.80; Adjusted non-GAAP EPS: $6.85 - $6.95; Free cash flow: $925M; Capex: $220M.
Sep. 25, 2015, 2:04 PM
- Packaged food stocks are ahead of broad market averages for the day. There are some consistent themes playing out in the sector which have increased interest in select names. Topping the list are M&A potential, activist investor action, and good old-fashioned fundamental valuation.
- Gainers: Treehouse Foods (NYSE:THS) +3.1%, B&G Foods (NYSE:BGS) +2.9%, ConAgra Foods (NYSE:CAG) +2.7%, Kellogg (NYSE:K) +2.6%, General Mills (NYSE:GIS) +2.3%, Campbell Soup (NYSE:CPB) +2.3%, J.M. Smucker (NYSE:SJM) +1.6%.
Sep. 21, 2015, 5:49 PM
- J.M. Smucker (NYSE:SJM) -1.7% AH on news its largest inside stakeholder, Blue Holdings I LP, was selling all its shares in a secondary offering, in which SJM will receive no proceeds.
- The stake, nearly 8.3M shares, represents some of the shares Blue Holdings got in SJM's February acquisition of Big Heart Pet Brands.
Sep. 16, 2015, 11:01 AM
- A statement from Anheuser-Busch InBev (BUD +5%) indicates the company must make a formal offer for SABMiller (OTCPK:SBMRY +19.5%) before October 14 or take a pass on the mega-merger to stay in compliance with U.K. law.
- There's a ripple effect with beer stocks circling the globe that includes distributors such as Compania Cervecerias Unidas (CCU +3.1%), Fomento Economico Mexicano (FMX +1.8%), AmBev (ABEV +2.1%).
- Another intriguing aspect of a potential A-B takeover of SABMiller is the side effects on the food industry if 3G Capital is fully engaged on the deal. 3G is a major player in food mergers and a factor in how investors value companies such as Mondelez International (MDLZ +0.2%), PepsiCo (PEP +0.4%), TreeHouse Foods (THS +0.1%), Campbell Soup (CPB +1.9%), JM Smucker (SJM +1.1%), and other food names.
- A-B InBev statement (.pdf)
- Previously: AB InBev prepping offer for SABMiller
- Previously: Beer stock rally with M&A on tap
Aug. 27, 2015, 9:43 AM
- J.M. Smucker (NYSE:SJM) reports net sales rose 47% in FQ1 due to acquisition of Big Heart Pet Brands and the Company's U.S. retail launch of Dunkin' Donuts K-Cup pods.
- Excluding the acquisition and currency impact net sales increased 6% for the period.
- Revenue by segment: U.S. Retail Coffee: $565M (+12%); U.S. Retail Consumer Foods: $582.2M (flat); U.S. Retail Pet Foods: $549.9M; International and Foodservice: $254.9M (+7%).
- Adjusted gross margin rate grew 20 bps to 38%.
- Adjusted operating margin rate fell 130 bps to 15.5%.
- EBITDA margin remained constant Y/Y at 19.3%.
- Total SG&A expenses rate +80 bps to 19.9%.
- FY2016 Guidance: Net sales: $8B; Non-GAAP EPS: $5.65 - $5.80; Adjusted non-GAAP EPS: $6.80 - $6.95; Free cash flow: $900M; Capex: $200M.
Jul. 9, 2015, 6:15 PM| Jul. 9, 2015, 6:15 PM
Jul. 6, 2015, 2:14 PM
- Keurig Green Mountain (GMCR -3.6%) is slammed after SunTrust cut its stock price target to $70 from $95, citing a loss of market share to the likes of Kraft Heinz (KHC), JM Smucker (NYSE:SJM) and Starbuck (NASDAQ:SBUX).
- The firm thinks GMCR will need to address share losses for its company-owned brands sooner rather than later, which will pressure earnings; market share for GMCR-owned brands have dropped to 28% from 35% over the past year and posted a 5% sales decline and 12% volume decline in the most recent four-week period, according to Nielsen, lost to GMCR’s licensed partners which have stronger brands and are promoting their products more than GMCR.
- SunTrust says it does not believe GMCR wants simply to be a contract manufacturer for the industry; GMCR will need to step up promotions in the coming months while working through its higher-cost coffee hedges, which the firm cites as the key reason behind its FY 2015 earnings reduction.
Mar. 26, 2015, 12:37 PM
- Deutsche Bank thinks 3G Capital will be back in the food sector for a major acquisition faster than some other investment firms anticipate.
- 3G put itself in a stronger position to make a major purchase by not adding debt in the Kraft deal.
- Analyst Eric Katzman sees some food names trading with a premium as the 3G shadow hangs over the sector, while others have downside risk with M&A speculation not making as much sense.
- Premium on: ConAgra (NYSE:CAG), General Mills (NYSE:GIS), Mondelez International (NASDAQ:MDLZ), Pinnacle Foods (NYSE:PF), PepsiCo (NYSE:PEP).
- Premium off: Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY), Hormel (NYSE:HRL), Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM).
- Previously: Investors snapping up food stocks (Mar. 25 2015)
- Previously: Beer fallout from Kraft buyout (Mar. 25 2015)
- Previously: Kraft-Heinz merger has a few ETFs on the move (Mar. 25 2015)
Feb. 26, 2015, 10:42 AM
- Shares of J.M. Smucker (SJM +1%) and Dunkin Brands' (DNKN +2.9%) are both higher after the two companies sign a deal to broaden distribution for Dunkin' Donuts K-cups.
- J.M. Smucker is handling distribution to grocery stores and club chains, while Keurig Green Mountain (GMCR -0.1%) will cover office supply stores and specialty stores.
- Perhaps the most important aspect of the new distribution deal is that Dunkin' K-Cup packs will now be sold online.
- The K-cup shakeup isn't expected by most analysts to have a major impact on Starbucks (SBUX +0.2%) which is also a Keurig partner. Smaller coffee brands could suffer though.
Feb. 4, 2015, 9:13 AM
Feb. 3, 2015, 4:57 PM
- J.M. Smucker (NYSE:SJM) is acquiring Big Heart Pet Brands from its P-E owners for 17.9M shares, $1.3B in cash, and $2.6B in debt that will be refinanced (total consideration of $5.8B). For reference, Smucker closed today with a $10.7B market cap.
- Big Heart, known as Del Monte before unloading its consumer products ops, owns the Meow Mix, Kibbles 'n Bits, Milk-Bone, and Natural Balance pet food brands, among others.
- The deal is expected to close by the end of Big Heart's FY15 (ends on May 3). Following its closing Big Heart CEO Dave West will serve as the the president of Smucker's pet food ops.
- Smucker has risen to $110.75 in AH trading, making new 52-week highs along the way.
Nov. 12, 2014, 8:23 AM
- J.M. Smucker (NYSE:SJM) announces that it expects FQ2 sales to show a 5% decline.
- The company's results were impacted by weak demand in the U.S. Retail Coffee segment - particularly with the Folgers brand which had a price increase pushed through earlier this year.
- The coffee sales slowdown coincides with higher input costs for green coffee.
- Guidance: FY15 sales growth of -1% forecast vs. a prior outlook for a 3% to 4% increase.
- SJM -4.7% premarket.
May 27, 2014, 7:28 AM
- A $6.4B offer by Pilgrim Pride's (PPC) to buy Hillshire Brands (HSH) could rattle the food sector.
- For starters, the deal could spoil Hillshire's offer on the table to buy Pinnacle Foods (PF).
- The quick analyst take on a PPC-HSH combination is favorable with the companies focused in different areas (chicken vs. packaged meat) which could lead to easy access to new distribution channels.
- Premarket: HSH +22.9% to $45.49, PF -5.3% to $31.50.
- Also on merger watch in the food sector: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K CAG
The J. M. Smucker Co. engages in the production and market of fruit spreads, peanut butter and other food products. The company operates through the following segments: U. S. Retail Coffee, U. S. Retail Consumer Foods and International, Foodservice & Natural Foods. The U. S. Retail Coffee... More
Sector: Consumer Goods
Industry: Processed & Packaged Goods
Country: United States
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