The J. M. Smucker Company (NYSE: SJM) reported a 12% jump in earnings for the second quarter of 2020 helped by lower costs and expenses despite a 3% decline in revenues. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates. However, the company lowered its adjusted earnings guidance for fiscal 2020.
Net income climbed by 12% to $211.2 million or $1.85 per share. Adjusted earnings increased by 4% to $2.26 per share.
Net sales declined by 3% to $1.96 billion. This reflected the impact of sales in the prior-year attributed to the divested US baking business. Net sales excluding the noncomparable divested business and foreign currency exchange decreased 1%.
Net price realization reduced net sales by 1 percentage point, primarily driven by lower net pricing for coffee and peanut butter, partially offset by higher pricing for pet food and pet snacks. Volume/mix impact was neutral as decreases for dog food and shortening and oils were mostly offset by increases for coffee and Smucker’s Uncrustables.
Looking ahead into fiscal 2020, the company now expects net sales to decline by 3% compared to the previous estimates of down 1% to 0%. Adjusted earnings guidance is lowered to the range of $8.10 to $8.30 per share from the prior range of $8.35 to $8.55 per share.
The net sales guidance included loss of $105.9 million of sales in the first 4 months of fiscal 2019 related to the divested US baking business and $25.4 million of incremental non-comparable sales for Ainsworth Pet Nutrition LLC. On a comparable basis, net sales are expected to be down 2%.
The sales forecast was hurt by the inclusion of the impact of second-quarter sales results and greater than anticipated softness in the back half of the fiscal year, primarily for certain brands within the US Retail Pet Foods segment. Free cash flow is expected to be about $850 million.
For the second quarter, sales from the US retail pet foods declined by 2% as the planned exits and softness at certain retailers hurt the private label sales. Sales from the US retail coffee decreased by $1.5 million as the net price realization on the Folgers and Dunkin’ Donuts brands were hurt by lower green coffee costs.
Sales from the US retail consumer foods fell by 8% due to non-comparable net sales in the prior year related to the divested US baking business. Sales from international and away from home declined by 3% primarily reflecting a 2 percentage point decline from volume/mix resulting from increased shipments in the prior year related to the closing of facilities in Mexico and transition to a distributor export model.
Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as
Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and
Shares of Tattooed Chef Inc. (NASDAQ: TTCF) have gained 57% over the past 12 months but has dropped 25% since the start of this year. The sentiment on the stock