ORRVILLE, OHIO — J.M. Smucker Co. on Dec. 1 said it now expects full-year fiscal 2021 net sales growth to range from flat to 1% (down from 1% to 2%) and adjusted earnings per share to range from $8.35 to $8.65 (down from $8.55 to $8.85) following the closing of its sale of the Crisco oils and shortening business to B&G Foods, Inc. for $550 million. Meanwhile, Smucker said it is maintaining its free cash flow guidance range of $975 million to $1.025 billion.
The company said it anticipates offsetting the earnings dilution and using the after-tax proceeds for share repurchases, over time.
Smucker updated its full-year fiscal 2021 guidance to reflect the impact of the divested business as well as the continuing impact of the coronavirus (COVID-19) pandemic.
“Changes in consumer purchasing behavior, retailer inventory levels, macroeconomic conditions, and any manufacturing or supply chain disruption could materially impact our actual results,” Smucker said. “This guidance reflects expectations based on the company's current performance and understanding of the overall environment.”
Smucker announced its decision to sell the Crisco business on Oct. 26. The transaction includes oils and shortening products sold under the Crisco brand primarily in the United States and Canada, certain trademarks and licensing agreements, dedicated manufacturing and warehouse facilities located in Cincinnati, and approximately 160 employees. The business generated net sales of approximately $270 million for the company's fiscal year ended April 30, 2020.
The divestiture of the Crisco business aligns with Smucker’s previously stated intent to exit the US baking category and focus more of its resources on its core growth platforms of pet food, coffee, and snacking.