Executive Summary
The J. M. Smucker Company delivered a solid QQ1 2025 in USD with meaningful top-line momentum and improved gross profit versus year-ago levels, but quarter-over-quarter profitability showed dilution from the prior period. Revenue of $2.126 billion rose roughly 17.7% year over year, supported by favorable mix and pricing actions, while gross profit reached $797.2 million (gross margin 37.5%). Operating income was $349.5 million (operating margin 16.4%), and net income stood at $185.0 million with EPS of $1.74. Despite the positive YoY trajectory, QoQ figures were softer, reflecting ongoing input cost pressures and mix dynamics that moderated margins. Free cash flow was $49.2 million, with cash from operating activities of $172.9 million and capital expenditures of $123.7 million, underscoring the company’s ability to generate cash to support dividends and service debt, albeit with a high absolute debt load.
Key Performance Indicators
QoQ: -12.71% | YoY:21.75%
QoQ: -13.92% | YoY:15.16%
QoQ: -24.68% | YoY:-2.79%
Key Insights
Revenue: $2.126B; YoY +17.7%, QoQ -3.65%. Gross Profit: $797.2M; YoY +21.8%, QoQ -12.7% (Gross Margin: 37.5%). Operating Income: $349.5M; YoY +15.2%, QoQ -13.9% (Operating Margin: 16.4%). Net Income: $185.0M; YoY +0.8%, QoQ -24.5% (Net Margin: 8.7%). EPS: $1.74; YoY -2.8%, QoQ -24.7%. EBITDA: $475.4M (EBITDA Margin: 22.4%). Free Cash Flow: $49.2M; Operating Cash Flow: $172.9M; Capital Expenditures: $123.7M. Cash at end of period: $39.5M. Total debt: $8.606B; Net debt: $8.567B; Debt-to-capitaliza...
Financial Highlights
Revenue: $2.126B; YoY +17.7%, QoQ -3.65%. Gross Profit: $797.2M; YoY +21.8%, QoQ -12.7% (Gross Margin: 37.5%). Operating Income: $349.5M; YoY +15.2%, QoQ -13.9% (Operating Margin: 16.4%). Net Income: $185.0M; YoY +0.8%, QoQ -24.5% (Net Margin: 8.7%). EPS: $1.74; YoY -2.8%, QoQ -24.7%. EBITDA: $475.4M (EBITDA Margin: 22.4%). Free Cash Flow: $49.2M; Operating Cash Flow: $172.9M; Capital Expenditures: $123.7M. Cash at end of period: $39.5M. Total debt: $8.606B; Net debt: $8.567B; Debt-to-capitalization: 0.527; Interest Coverage: 3.60x. Current Ratio: 0.553; Quick Ratio: 0.251; Cash Conversion Cycle: ~23.9 days.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.13B |
17.72% |
-3.65% |
| Gross Profit |
797.20M |
21.75% |
-12.71% |
| Operating Income |
349.50M |
15.16% |
-13.92% |
| Net Income |
185.00M |
0.76% |
-24.52% |
| EPS |
1.74 |
-2.79% |
-24.68% |
Key Financial Ratios
operatingProfitMargin
16.4%
operatingCashFlowPerShare
$1.63
freeCashFlowPerShare
$0.46
dividendPayoutRatio
60.6%
Management Commentary
No QQ1 2025 earnings call transcript data were provided in the dataset. As a result, there are no management quotes or theme-based highlights to extract from an actual call. If a transcript is supplied, I will synthesize themes by management strategy, operations, and market conditions with direct quotes and context.
Forward Guidance
The dataset does not include explicit forward-looking targets or guidance for QQ2 2025 or beyond. Management commentary, if available, would typically address pricing actions to offset input-cost inflation, expected productivity savings, and potential category shifts (e.g., pet foods, coffee) that could influence margins. Absent formal guidance, the prudent view is to monitor: (i) signs of sustained price/mix benefits versus commodity cost headwinds, (ii) efficiency and SG&A containment, and (iii) working capital dynamics and debt maturity management. Investors should watch for commentary on whether Smucker can maintain mid-teens operating margins in a high-debt environment and any plans to de-lever over the next several quarters.