J.M. Smucker Fiscal Half-Year Report 2022

November 23, 2021

Net Sales
Net sales increased 1 percent. Excluding noncomparable net sales in the prior year of $135.7 million for the divested Crisco® and Natural Balance® businesses, as well as $5.6 million of favorable foreign currency exchange, net sales increased $146.1 million, or 8 percent. The increase in comparable net sales was due to favorable volume/mix and higher net price realization for each of the Company’s U.S. Retail segments and for International and Away From Home.

Operating Income
Gross profit decreased $106.7 million, or 13 percent, reflecting higher costs, primarily driven by increased commodity, manufacturing, transportation, and packaging costs, and the noncomparable impact of the Crisco® and Natural Balance® divestitures, partially offset by increased pricing and favorable volume/mix. Operating income decreased $69.0 million, or 18 percent, primarily driven by the decrease in gross profit, partially offset by a $35.1 million decrease in selling, distribution, and administrative (“SD&A”) expenses.

Adjusted gross profit decreased $55.8 million, or 7 percent, with the difference from generally accepted accounting principles (“GAAP”) results being the exclusion of the change in net cumulative unallocated derivative gains and losses and special project costs. Adjusted operating income decreased $20.9 million, or 5 percent, further reflecting the exclusion of amortization and other special project costs.