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Investor Relations | The J.M. Smucker Company The J.M. Smucker Co. Announces Fiscal 2021 Third Quarter Results ORRVILLE , Ohio , Feb. 25 , 2021 / PRNewswire / -- The J.M. Smucker Co. ( NYSE : SJM ) today announced results for the third quarter ended January 31 , 2021 , of its 2021 fiscal year . Financial results for the third quarter and the first nine months of fiscal year 2021 reflect the divestiture of the CriscoⓇ business on December 1 , 2020 , and the divestiture of the Natural Balance® business on January 29 , 2021. All comparisons are to the third quarter of the prior fiscal year , unless otherwise noted . EXECUTIVE SUMMARY • Net sales increased $ 104.4 million , or 5 percent . Net sales excluding the noncomparable divested businesses and foreign currency exchange increased 7 percent , reflecting growth across each of the Company's U.S. and International retail businesses , partially offset by a decline in its Away From Home business . • Net income per diluted share was $ 2.32 . Adjusted earnings per share was $ 2.45 , an increase of 4 percent . • Cash from operations was $ 486.3 million , a decrease of 7 percent . Free cash flow was $ 416.6 million , compared to $ 465.1 million in the prior year . • Return of capital to shareholders was $ 600.3 million , including cash dividends and share repurchases . • The Company increased its full - year fiscal 2021 net sales , adjusted earnings per share , and free cash flow outlook . CHIEF EXECUTIVE OFFICER REMARKS " We delivered another quarter of strong financial results , including net sales growth in each of our U.S. and International retail businesses , driven by the elevated at - home consumption trends and ongoing execution of our consumer - centric strategy , " said Mark Smucker , President and Chief Executive Officer . " We are encouraged by the momentum we are building in our brands and continued improvement in our market share trends . I want to thank all our employees for their commitment to delivering food for consumers and their pets in this unique environment . " " Furthermore , we continue to make significant progress on our priorities to strengthen our capabilities and unlock the full potential of our strategy . During the quarter , we completed two divestitures , supporting our priority to further focus our portfolio and resources toward pet food , coffee , and snacking . With our strong performance in the third quarter and momentum for our leading brands , we are pleased to increase our full - year financial guidance , while continuing to invest in our brands to support long - term growth and increase shareholder value . " THIRD QUARTER CONSOLIDATED RESULTS Three Months Ended January 31 , 2021 % Increase 2020 ( Decrease ) ( Dollars and shares in millions , except per share data ) Net sales Operating income Adjusted operating income $ 2,076.7 $ 1,972.3 5 % $ 406.2 403.9 $ 289.0 395.8 41 2 do do % % Net income per common share - assuming dilution Adjusted earnings per share - assuming dilution $ 2.32 2.45 $ 1.64 2.35 ་ བ་ 41 % di d % Weighted - average shares outstanding - assuming dilution 112.6 114.0 ( 1 ) % Net Sales Net sales increased 5 percent . Excluding noncomparable sales of $ 42.1 million for the divested Crisco® and Natural BalanceⓇ businesses , as well as $ 2.4 million of favorable foreign currency exchange , net sales increased $ 144.1 million , or 7 percent . The increase in comparable net sales was primarily due to favorable volume / mix for each of the Company's U.S. Retail segments , partially offset by reduced volume / mix for its Away From Home operating segment . Net price realization was neutral , primarily reflecting lower net pricing in the U.S. Retail Pet Food and U.S. Retail Coffee segments , offset by higher net pricing in the U.S. Retail Consumer Foods segment . Operating Income Gross profit increased $ 49.4 million , or 7 percent , primarily due to the increased contribution from volume / mix and a favorable change in unallocated derivative gains and losses as compared to the prior year , partially offset by higher costs and the noncomparable impact of the Crisco® and Natural Balance® divestitures . Operating income increased $ 117.2 million , or 41 percent , primarily attributable to a $ 52.4 million intangible asset impairment charge in the prior year , the increase in gross profit , and a $ 27.2 million net pre - tax gain on divestitures , partially offset by a $ 12.8 million increase in selling , distribution , and administrative ( " SD & A " ) expenses . Adjusted gross profit increased $ 23.3 million , or 3 percent , with the difference from generally accepted accounting principles ( " GAAP " ) results being the exclusion of unallocated derivative gains and losses . Adjusted operating income increased $ 8.1 million , or 2 percent , further reflecting exclusion of the impairment charge in the prior year , the net pre - tax gain on divestitures , amortization , and other special project costs . Interest Expense and Income Taxes Net interest expense decreased $ 1.6 million , primarily as a result of reduced debt outstanding and a decrease in interest rates , partially offset by interest expense related to interest rate contracts terminated in the fourth quarter of the prior year . The effective income tax rate was 27.7 percent compared to 22.7 percent in the prior year , primarily reflecting the impact of net additional income tax