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Investor Relations | The J.M. Smucker Company The J.M. Smucker Co. Announces Fiscal 2022 Second Quarter Results ORRVILLE , Ohio , Nov. 23 , 2021 / PRNewswire / -- The J.M. Smucker Co. ( NYSE : SJM ) today announced results for the second quarter ended October 31 , 2021 , of its 2022 fiscal year . Financial results for the second quarter of fiscal year 2022 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 second quarter of the prior fiscal year , unless otherwise noted . EXECUTIVE SUMMARY • Net sales increased $ 16.0 million , or 1 percent . Net sales excluding divestitures and foreign currency exchange increased 8 percent . • Net income per diluted share was $ 1.90 , a decrease of 6 percent . Adjusted earnings per share was $ 2.43 , an increase of 2 percent . • Cash from operations was $ 165.1 million , a decrease of 56 percent . Free cash flow was $ 105.9 million , compared to $ 326.3 million in the prior year . • The Company updated its full - year fiscal 2022 financial outlook . CHIEF EXECUTIVE OFFICER REMARKS " Our second quarter results , including comparable net sales growth of 8 percent , exceeded our expectations and demonstrated sustained momentum for our business and strong execution by our talented employees in what remains a dynamic operating environment , " said Mark Smucker , President and Chief Executive Officer . " We delivered robust organic top - line growth across each of our segments , reflecting consumers ' continued desire for our brands and the successful implementation of initial pricing actions . " " We are pleased with our ability to increase our net sales and adjusted earnings per share expectations for the fiscal year despite increasing cost inflation and continued supply chain disruption . We remain confident that the actions we are taking to execute our strategy are positioning us to deliver sustainable growth and create shareholder value over the long term . " SECOND QUARTER CONSOLIDATED RESULTS Three Months Ended October 31 , 2021 2020 % Increase ( Decrease ) ( Dollars and shares in millions , except per share data ) Net sales Operating income Adjusted operating income Net income per common share - assuming dilution Adjusted earnings per share - assuming dilution $ 2,050.0 $ 2,034.0 1 % $ 311.8 387.9 $ 380.8 ( 18 ) % 408.8 ( 5 ) % $ 1.90 $ 2.02 2.43 2.39 ( 6 ) % 2 % Weighted - average shares outstanding – assuming dilution 108.4 114.2 ( 5 ) % Net Sales Net sales increased 1 percent . Excluding noncomparable net sales in the prior year of $ 135.7 million for the divested CriscoⓇ and Natural Balance® businesses , as well as $ 5.6 million of favorable foreign currency exchange , net sales increased $ 146.1 million , or 8 percent . The increase in comparable net sales was due to favorable volume / mix and higher net price realization for each of the Company's U.S. Retail segments and for International and Away From Home . Operating Income Gross profit decreased $ 106.7 million , or 13 percent , reflecting higher costs , primarily driven by increased commodity , manufacturing , transportation , and packaging costs , and the noncomparable impact of the Crisco® and Natural Balance® divestitures , partially offset by increased pricing and favorable volume / mix . Operating income decreased $ 69.0 million , or 18 percent , primarily driven by the decrease in gross profit , partially offset by a $ 35.1 million decrease in selling , distribution , and administrative ( " SD & A " ) expenses . Adjusted gross profit decreased $ 55.8 million , or 7 percent , with the difference from generally accepted accounting principles ( " GAAP " ) results being the exclusion of the change in net cumulative unallocated derivative gains and losses and special project costs . Adjusted operating income decreased $ 20.9 million , or 5 percent , further reflecting the exclusion of amortization and other special project costs . Interest Expense , Other Income ( Expense ) , and Income Taxes Net interest expense decreased $ 4.8 million , primarily as a result of reduced debt outstanding as compared to the prior year . Net other expense decreased $ 29.5 million , primarily due to the lapping of a $ 27.9 million noncash pre - tax pension settlement charge in the prior year related to the Company's Canadian defined benefit pension plan , which was excluded from adjusted net income . The effective income tax rate was 23.4 percent compared to 24.0 percent in the prior year . The adjusted effective income tax rate was 23.5 percent , compared to 24.0 percent in the prior year . Cash Flow and Debt Cash provided by operating activities was $ 165.1 million , compared to $ 378.7 million in the prior year , primarily reflecting an increase in working capital requirements , as compared to the prior year , mostly due to the timing of payments for accounts payable and accrued liabilities , and a decrease in net income adjusted for noncash items . Free cash flow was $ 105.9 million , compared to $ 326.3 million in the prior year , reflecting the decrease in cash provided by