The J. M. Smucker Company Reveals Its Second Quarter Results for Fiscal 2016

The J.M. Smuckers Company reported confidence upon the release of its second quarter results for the fiscal 2016 year, which included a $595.9 million (40 percent) increase in net sales.

"We are pleased to have delivered another quarter of solid financial results, which reflects the momentum we are seeing across our businesses," Richard Smucker, Chief Executive Officer, stated, according to the financial report. "Our coffee business had a strong second quarter, with double-digit volume gains for Folgers® roast and ground coffee and contributions from our recently introduced Dunkin' Donuts® K-Cup® pods.”

• Net income per diluted share was $1.47, a decrease of 5 percent, as the benefit from Big Heart operations was offset by merger and integration costs, higher interest expense, and the impact of additional shares outstanding.
• Non-GAAP income per diluted share was $1.62, an increase of 6 percent, while adjusted non-GAAP income per diluted share, which excludes amortization, was $1.91, an increase of 13 percent.
• Free cash flow was $211.0 million, reflecting the benefits of Smuckers' working capital reduction initiatives.
• The company updated its fiscal 2016 earnings outlook with non-GAAP income per diluted share expected to range from $5.70 to $5.80, and adjusted non-GAAP income per diluted share expected to range from $6.85 to $6.95.

While much of the growth was attributed to the acquisition of Big Heart Pet Brands ("Big Heart"), much of the numbers were also attributed, as Smuckers stated, to growth within the U.S. Retail Coffee segment.

“With a number of key initiatives ongoing across the company, including the integration of Big Heart, this remains a dynamic and exciting time for our teams, and we thank all our employees for their continued dedication,” the CEO added.

Net sales overall went to just over $2 billion from about $1.4 billion at the same time last year, while operating income saw a 23 percent boost, to $313.8 million from $254.8 million this time last year.

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