Executive Summary
The J M Smucker Company reported QQ2 2025 results that showcased revenue expansion and an improvement in gross margin, but the quarter culminated in a net loss due to elevated financing and non-operating expenses. Revenue rose 17.16% year-over-year to $2.271B, with gross profit of $886.1M and a gross margin of 39.01%. Operating income totaled $169.7M, yet net income was negative $24.5M (-1.08% net margin) as total other expenses and interest expenses weighed on the bottom line. Free cash flow generated was $317.2M, supported by $404.2M of operating cash flow and capital expenditures of $87M. The company reduced debt via principal repayments but ended the period with a sizable net debt of approximately $8.33B and a current ratio of 0.58, signaling liquidity pressures in the near term. Management commentary is not available in the provided data (earnings transcript not supplied), limiting direct quotes; nonetheless, the quarter reinforces Smucker’s resilience through a diversified brand portfolio and sizable operating cash flow, while highlighting the importance of deleveraging and margin optimization going forward.
Key Performance Indicators
QoQ: -51.44% | YoY:-43.23%
QoQ: -113.24% | YoY:-112.57%
QoQ: -113.22% | YoY:-112.04%
Key Insights
Revenue: USD 2,271.2M; YoY +17.16%; QoQ +6.87%. Gross Profit: USD 886.1M; YoY +22.36%; QoQ +11.15%; Gross Margin: 39.01%. Operating Income: USD 169.7M; YoY -43.23%; QoQ -51.44%; Operating Margin: 7.47%. Net Income: -USD 24.5M; YoY -112.57%; QoQ -113.24%; Net Margin: -1.08%. EPS: -0.23; YoY -112.04%; QoQ -113.22%. Free Cash Flow: USD 317.2M (CFO USD 404.2M; Capex USD 87.0M). Cash from operations: USD 404.2M. Capital expenditures: USD 87.0M. Dividends Paid: USD 114.4M. Common stock repurchased: US...
Financial Highlights
Revenue: USD 2,271.2M; YoY +17.16%; QoQ +6.87%. Gross Profit: USD 886.1M; YoY +22.36%; QoQ +11.15%; Gross Margin: 39.01%. Operating Income: USD 169.7M; YoY -43.23%; QoQ -51.44%; Operating Margin: 7.47%. Net Income: -USD 24.5M; YoY -112.57%; QoQ -113.24%; Net Margin: -1.08%. EPS: -0.23; YoY -112.04%; QoQ -113.22%. Free Cash Flow: USD 317.2M (CFO USD 404.2M; Capex USD 87.0M). Cash from operations: USD 404.2M. Capital expenditures: USD 87.0M. Dividends Paid: USD 114.4M. Common stock repurchased: USD 100.0M. Net debt: USD 8,333.1M. Cash and cash equivalents: USD 49.2M. Total assets: USD 20,020.1M. Total liabilities: USD 12,387.0M. Total equity: USD 7,633.1M. Current ratio: 0.577; Quick ratio: 0.273; Cash ratio: 0.0138. Interest Coverage: 4.44. Debt/Capitalization: 0.525; Debt/Equity: 1.105. Days Sales Outstanding: 31.9; Days Inventory Outstanding: 66.95; Cash Conversion Cycle: 22.66. Price to Sales: 5.34; Price to Book: 1.588; EV/EBITDA: 70.70; Dividend Yield: 0.94%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.27B |
17.16% |
6.87% |
| Gross Profit |
886.10M |
22.36% |
11.15% |
| Operating Income |
169.70M |
-43.23% |
-51.44% |
| Net Income |
-24.50M |
-112.57% |
-113.24% |
| EPS |
-0.23 |
-112.04% |
-113.22% |
Key Financial Ratios
operatingProfitMargin
18.6%
operatingCashFlowPerShare
$3.8
freeCashFlowPerShare
$2.98
dividendPayoutRatio
-467%
priceEarningsRatio
-123.72
Management Commentary
Transcript content not provided in the input. As a result, transcript highlights by theme and management quotes could not be generated. When a transcript becomes available, this section should cover: strategy and portfolio actions (coffee, pet foods, consumer foods), cost efficiency and price realization, capital allocation, and market conditions.
Forward Guidance
No explicit forward guidance was embedded in the provided data. Given the QQ2 2025 results, the near-term outlook will hinge on: (1) price realization and mix optimization to support margin recovery, (2) ongoing deleveraging and financing costs as interest rates evolve, (3) resilience of US Retail Coffee, Pet Foods, and Consumer Foods volumes amid macro uncertainty, and (4) currency and input-cost volatility. Management commentary would typically address targeted margin improvements, expected free cash flow generation, and any anticipated capital allocation priorities (debt reduction, dividends, and potential share repurchases). In the absence of stated targets, investors should monitor: gross and operating margins trajectory, debt reduction pace, quarterly CFO/FCF progression, and any commentary on product mix shifts that could drive longer-term profitability.