Executive Summary
The J. M. Smucker Company reported QQ4 2024 results demonstrating meaningful margin expansion and cash flow generation despite a modest year-over-year decline in revenue. On a reported basis, revenue was $2.2057 billion, down 1.3% YoY and 1.05% QoQ, while gross margin uplift to approximately 41.4% helped drive operating income to $406 million and net income to $245.1 million (EPS diluted $2.30). The quarter marked a sizable profitability turnaround versus QQ4 2023, when operating income was negative, reflecting a 164% YoY improvement in operating profitability and a 141% YoY rise in net income. Free cash flow reached $297.5 million (CFO $428.1 million; capex $130.6 million), underscoring the company’s ability to fund dividends and deleverage over time. Despite a robust cash generation profile, Smucker carries substantial balance sheet leverage with total debt around $8.56 billion and net debt of $8.50 billion, and liquidity remains modest (current ratio 0.523; quick ratio 0.247). The results reinforce a narrative of resilient brand franchises and improved cost management, while highlighting ongoing balance sheet and demand-cycle considerations that investors should monitor. This analysis synthesizes the quarterly figures with any available management commentary to outline the evolution of margins, cash flow, balance sheet health, and strategic positioning within Consumer Defensive staples and the Food Confectioners segment.
Key Performance Indicators
QoQ: 36.52% | YoY:164.09%
QoQ: 103.57% | YoY:140.80%
QoQ: 102.63% | YoY:140.60%
Key Insights
Revenue: $2.2057B (YoY -1.3%, QoQ -1.05%). Gross Profit: $913.3M; Gross Margin 41.41% (YoY +15.26%, QoQ +10.96%). Operating Income: $406.0M; Operating Margin 18.41% (YoY +164.09%, QoQ +36.52%). Net Income: $245.1M; Net Margin 11.11% (YoY +140.80%, QoQ +103.57%). EPS: $2.31 (Diluted $2.30). EBITDA: $535.4M; EBITDA Margin 24.27%. Free Cash Flow: $297.5M; CFO $428.1M; Capex $130.6M. Balance Sheet: Total assets $20.56B; Total debt $8.56B; Net debt $8.50B; Cash $62.0M. Liquidity: Current ratio 0.523;...
Financial Highlights
Revenue: $2.2057B (YoY -1.3%, QoQ -1.05%). Gross Profit: $913.3M; Gross Margin 41.41% (YoY +15.26%, QoQ +10.96%). Operating Income: $406.0M; Operating Margin 18.41% (YoY +164.09%, QoQ +36.52%). Net Income: $245.1M; Net Margin 11.11% (YoY +140.80%, QoQ +103.57%). EPS: $2.31 (Diluted $2.30). EBITDA: $535.4M; EBITDA Margin 24.27%. Free Cash Flow: $297.5M; CFO $428.1M; Capex $130.6M. Balance Sheet: Total assets $20.56B; Total debt $8.56B; Net debt $8.50B; Cash $62.0M. Liquidity: Current ratio 0.523; Quick ratio 0.247; Cash ratio 0.0165. Leverage and Coverage: Debt/Capitalization 0.527; Debt/Equity 1.112; Interest Coverage 4.17. Dividend yield ~0.92%; P/E ~12.44; Price/Sales 5.53; FCF per share $2.80; Operating Cash Flow per Share $4.03.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.21B |
-1.30% |
-1.05% |
| Gross Profit |
913.30M |
15.26% |
10.96% |
| Operating Income |
406.00M |
164.09% |
36.52% |
| Net Income |
245.10M |
140.80% |
103.57% |
| EPS |
2.31 |
140.60% |
102.63% |
Key Financial Ratios
operatingProfitMargin
18.4%
operatingCashFlowPerShare
$4.03
freeCashFlowPerShare
$2.8
dividendPayoutRatio
45.7%
Management Commentary
Note: The earnings transcript was not provided in the data. As a result, there are no management quotes available to cite in this section. The analysis below infers management commentary through the reported results and available ratios.
Forward Guidance
No explicit forward-looking targets or guidance were provided in the available data. Given the earnings profile, investors should monitor: (1) leverage trajectory and deleveraging progress against the $8.56B gross debt load, (2) cost inflation versus pricing/mix actions that supported the 41.4% gross margin, (3) working capital dynamics given modest liquidity metrics, and (4) from a market perspective, consumer staple demand resilience in the U.S. and international markets, as well as ongoing volatility in input costs (commodities, transportation). Management historically emphasizes sustaining free cash flow to fund dividends and potential capital allocation—any update on capex plans, portfolio optimization, or strategic initiatives in pet foods, coffee, and branded foods would be key drivers of the investment thesis.