The J.M. Smucker Co. announced its fiscal 2026 first-quarter results, highlighting key financial metrics and changes in net sales and earnings.
The company experienced a decrease in net sales by 1 percent, with a net loss per diluted share of $0.41 and adjusted earnings per share of $1.90.
Cash used for operating activities was $10.6 million compared to cash provided by operating activities of $172.9 million in the prior year.
Net Sales
Net sales decreased by 1 percent, excluding divestitures and foreign currency exchange, with a 2 percent increase in comparable net sales.
Operating Income
Gross profit decreased by 40 percent, primarily due to higher commodity costs. Operating income decreased by 87 percent, reflecting the decrease in gross profit.
Interest Expense and Income Taxes
Net interest expense was comparable to the prior year. Effective income tax rate decreased to 22.3 percent from 24.8 percent due to a loss before income taxes.
Cash Flow and Debt
Cash used for operating activities was $10.6 million, with a shift from cash provided in the prior year. The company's free cash flow decreased to ($94.9) million.
- The decrease in net sales and earnings per share signals the impact of divestitures and unfavorable foreign currency exchange on the company's financial performance.
- Higher commodity costs and a significant decrease in operating income highlight challenges faced by The J.M. Smucker Co. in maintaining profitability.
The J.M. Smucker Co.'s first-quarter results show a mixed financial performance, with challenges in net sales and profitability. The company's focus on investing in growth platforms will be crucial for long-term success.