The J. M. Smucker Company (SJM) Q2 2023 Earnings Call Transcript

The J. M. Smucker Company (NYSE:SJM) Q2 2023 Results Conference Call November 21, 2022 7:00 AM ET

Company Participants

Aaron Broholm - Vice President, Investor Relations

Mark Smucker - Chair of the Board, President and Chief Executive Officer

Tucker Marshall - Chief Financial Officer

Aaron Broholm

Good morning, this is Aaron Broholm, Vice President, Investor Relations for The J. M. Smucker Company. Thank you for listening to our prepared remarks on our Fiscal 2023 Second Quarter Earnings. After this brief introduction, Mark Smucker, Chair of the Board, President and Chief Executive Officer, will give an overview of the quarter’s results and an update on strategic initiatives. Tucker Marshall, Chief Financial Officer, will then provide a detailed analysis of the financial results and our updated fiscal 2023 outlook.

Later this morning, we will hold a separate, live question-and-answer webcast. During today’s discussion, we will make forward-looking statements that reflect our current expectations about future plans and performance. These statements rely on assumptions and estimates, and actual results may differ materially due to risks and uncertainties.

Additionally, please note we will refer to non-GAAP financial measures management uses to evaluate performance internally. I encourage you to read the full disclosure concerning forward-looking statements and details on our non-GAAP measures in this morning’s

press release.

Today’s press release, a supplementary slide deck summarizing the quarterly results, management’s prepared remarks, and the Q&A webcast can all be accessed on our Investor Relations website at jmsmucker.com.

We invite all interested parties to join us at 9:00 am Eastern Standard Time today for a live question-and-answer session with management to further discuss our second quarter results and outlook for the full 2023 fiscal year.

Please contact me if you have additional questions after today’s question-and-answer session.

I will now turn the discussion over to Mark Smucker.

Mark Smucker

Thank you, Aaron, and good morning, everyone. Following a solid start to the fiscal year, our momentum continued across all our businesses in the second quarter. Enabled by the extraordinary contributions of our people, we delivered strong results that exceeded

our expectations, reflecting the strength of our iconic brands, our focus on execution and the continued advancement of our strategic priorities.

In the second quarter, net sales increased 8% versus the prior year, with every business outperforming our expectations. Comparable net sales excluding divested businesses and foreign exchange, increased 11%. Elasticities remained modest across our portfolio, most notably for pet food and snacks, Uncrustables sandwiches, and fruit spreads.