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FISCAL 2026 FIRST QUARTER RESULTS August 27, 2025 SUPPLEMENTARY INFORMATION
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2FY26 Q1 RESULTS SUPPLEMENT EXECUTIVE SUMMARY Net sales decreased 1%. Comparable net sales (A) increased 2%. Net loss per diluted share was $0.41. Adjusted earnings per share was $1.90, a decrease of 22%. Free cash flow was ($94.9) million, compared to $49.2 million in the prior year. Updated full-year fiscal 2026 financial outlook. (A) Excludes the noncomparable impact to net sales of divestitures and foreign currency exchange.
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3FY26 Q1 RESULTS SUPPLEMENT CONSOLIDATED RESULTS FY26 Q1 FY25 Q1 YoY Change Net Sales $2,113.3 $2,125.1 (1%) Adjusted Gross Profit $743.2 $832.5 (11%) Adjusted Gross Profit Margin 35.2% 39.2% -400bps Adjusted Operating Income $370.3 $447.9 (17%) Adjusted Operating Income Margin 17.5% 21.1% -360bps Adjusted Effective Income Tax Rate 24.2% 24.6% -40bps Adjusted EPS – Assuming Dilution $1.90 $2.44 (22%) (Dollars in millions, except per share data)
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4FY26 Q1 RESULTS SUPPLEMENT Net Sales FY25 Q1 Volume/Mix Net Price Realization Divestitures Foreign Currency Exchange Net Sales FY26 Q1 CONSOLIDATED RESULTS Reported Net Sales Analysis Note: Amounts may not add due to rounding (A) Includes a $10.3 decrease in contract manufacturing sales related to the divested pet food brands, as compared to the prior year. YoY Change 6%(4%) (2%) 0% (Dollars in millions) (A) $2,125 $2,113 (1)% YoY $(83) $124 $(53) $(0)
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5FY26 Q1 RESULTS SUPPLEMENT CONSOLIDATED RESULTS Comparable Net Sales Analysis Net Sales FY25 Q1 Divestitures Comparable Net Sales FY25 Q1 Volume/Mix Net Price Realization Comparable Net Sales FY26 Q1 YoY Change (4%) 6% 2% YoY Note: . Amounts may not add due to rounding (A) Includes a $10.3 decrease in contract manufacturing sales related to the divested pet food brands, as compared to the prior year. (B) Excludes the noncomparable impact to net sales of divestitures and foreign currency exchange. $2,125 $2,072 $2,114 (B) (Dollars in millions) (A) $(83) $124 $(53)
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6FY26 Q1 RESULTS SUPPLEMENT BALANCE SHEET & CASH FLOW HIGHLIGHTS FY26 Q1 FY25 Q1 Cash Provided by (Used for) Operations ($10.6) $172.9 Capital Expenditures (84.3) (123.7) Free Cash Flow ($94.9) $49.2 July 31, 2025 April 30, 2025 Total Debt (Gross) $7,989.9 $7,677.6 Cash and Cash Equivalents (39.3) (69.9) Total Debt (Net) $7,950.6 $7,607.7 EBITDA (as adjusted, TTM) (A) $1,840.5 $2,137.0 Net Debt/EBITDA (TTM) (A) 4.3x 3.6x (A) Reflects amounts as reported, including acquired and divested businesses while under Company ownership. (Dollars in millions)
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7FY26 Q1 RESULTS SUPPLEMENT Net Sales Net Sales YoY Change $717.2 15% $484.7 (2%) $368.0 (8%) $253.2 (24%) $290.2 7% YoY Net Sales Change Summary: Divestitures Foreign Currency Exchange Net Sales Excluding Divestitures & Foreign Currency Exchange Volume/Mix Net Price Realization - - 15% (2%) 18% - - (2%) (2%) (1%) - - (8%) (8%) - (16%) - (10%) (8%) (2%) - (0%) 7% (2%) 9% SEGMENT RESULTS U.S. Retail Coffee U.S. Retail FH&S U.S. Retail Pet Foods Sweet Baked Snacks Int’l & AFH Note: Amounts may not add due to rounding (A) Current quarter net sales includes $0.2 of contract manufacturing sales related to the divested pet food brands, as compared to $10.5 in the prior year. Segment Profit Segment Profit YoY Change $134.2 (22%) $114.3 (4%) $101.3 (12%) $34.2 (54%) $65.5 35% Segment Profit Margin YoY Change 18.7% -900bps 23.6% -40bps 27.5% -130bps 13.5% -880bps 22.6% +470bps (A) (Dollars in millions)
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8FY26 Q1 RESULTS SUPPLEMENT FULL-YEAR FISCAL 2026 OUTLOOK Current Previous Net Sales Increase vs. Prior Year 3.0% to 5.0% 2.0% to 4.0% Adjusted EPS $8.50 - $9.50 $8.50 - $9.50 Free Cash Flow $975.0 $875.0 Capital Expenditures $325.0 $325.0 Adjusted Effective Income Tax Rate 23.8% 23.7% (Dollars in millions, except per share data)
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9FY26 Q1 RESULTS SUPPLEMENT Net Sales FY25 Volume/Mix Net Price Realization Pet Contract Manufacturing Divestitures Net Sales FY26 Guidance FY26 REPORTED NET SALES Reported Net Sales Outlook Analysis $8,726 (0%) (2%) (4%) 10% (B) BASE BUSINESS GROWTH (Dollars in millions) +4% at mid-point Note: Amounts may not add due to rounding (A) Represents a decline of approximately $38.0 in contract manufacturing sales related to the divested pet food brands. (B) Adjusted for $134.7 of net sales related to the divestitures of the Voortman® business and certain Sweet Baked Snacks value brands. (A)
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10FY26 Q1 RESULTS SUPPLEMENT Net Sales FY25 Divestitures Comparable Net Sales FY25 Volume/Mix Net Price Realization Pet Contract Manufacturing Comparable Net Sales FY26 Guidance FY26 COMPARABLE NET SALES Comparable Net Sales Outlook Analysis Note: Amounts may not add due to rounding (A) Adjusted for $134.7 of net sales related to the divestitures of the Voortman® business and certain Sweet Baked Snacks value brands. (B) Represents comparable net sales growth, which includes a decline of approximately $38.0 in contract manufacturing sales related to the divested pet food brands. $8,726 $8,591 (4%) 10% (2%) (A) COMPARABLE BUSINESS GROWTH (B) (0%) (Dollars in millions) +5.5% at mid-point
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11FY26 Q1 RESULTS SUPPLEMENT FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by those forward-looking statements. The risks, uncertainties, important factors, and assumptions listed and discussed in this presentation, which could cause actual results to differ materially from those expressed, include: the Company’s ability to successfully integrate Hostess Brands’ operations and employees and to implement plans and achieve financial forecasts with respect to the Hostess Brands’ business; disruption from the acquisition of Hostess Brands by diverting the attention of the Company’s management and making it more difficult to maintain business and operational relationships; the negative effects of the acquisition of Hostess Brands on the market price of the Company’s common shares; the amount of the costs, fees, expenses, and charges and the risk of litigation related to the acquisition of Hostess Brands; the effect of the acquisition of Hostess Brands on the Company’s business relationships, operating results, ability to hire and retain key talent, and business generally; disruptions or inefficiencies in the Company’s operations or supply chain, including any impact caused by product recalls, political instability, terrorism, geopolitical co nflicts, extreme weather conditions, natural disasters, pandemics, work stoppages or labor shortages, or other calamities; risks related to the availability of, and cost inflation in, supply chain inp uts, including labor, raw materials, commodities, packaging, and transportation; the impact of food security concerns involving either the Company’s products or its competitors’ products, changes in consumer preferences, consumer or other litigation, actions by the U.S. Food and Drug Administration or other agencies, and product recalls; risks associated with derivative and purchasing strategies the Company employs to manage commodity pricing and interest rate risks; the availability of reliable transportation on acceptable terms; the ability to ac hieve cost savings related to the Company's restructuring and cost management programs in the amounts and within the time frames currently anticipated; the ability to generate sufficient cash flow to continue operating under the Company’s capital deployment model, including capital expenditures, debt repayment to meet the Company’s deleveraging objectives, dividend payments, and share repurchases; a change in outlook or downgrade in the Company’s public credit ratings by a rating agency below investment grade; the ability to implement and realize the full benefit of price changes, and the impact of the timing of the price changes to profits and cash flow in a particular period; the success and cost of marketing and sales programs and strategies intended to promote growth in the Company’s businesses, including product innovation; general competitive activity in the market, including competitors’ pricing practices and promotional spending levels; the Company’s ability to attract and retain key talent; the concentration of certain of the Company’s businesses with key customers and suppliers, including primary or single-source suppliers of certain key raw materials and finished goods, and the Company’s ability to manage and maintain key relationships; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets or changes in the useful lives of other intangible assets or other long-lived assets; the impact of new or changes to existing governmental laws and regulations and their application, including tariffs, food ingredients, food labeling, and food accessibility; the outcome of tax examinations, changes in tax laws, and other tax matters; a disruption, failure, or security breach of the Company or its suppliers’ information technology systems, including, but not limited to, ransomware attacks; foreign currency exchange rate and interest rate fluctuations; and risks related to other factors described under "Risk Factors" in other reports and statements filed with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K. The Company undertakes no obligation to update or revise these forward-looking statements, which speak only as of the date made, to reflect new events or circumstances.
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12FY26 Q1 RESULTS SUPPLEMENT NON-GAAP FINANCIAL MEASURES The Company uses non-GAAP financial measures, including: net sales excluding divestitures and foreign currency exchange; adjusted gross profit; adjusted operating income; adjusted income; adjusted earnings per share; earnings before interest, taxes, depreciation, amortization expense, impairment charges related to intangible assets, and gains and losses on divestitures ("EBITDA (as adjusted)"); and free cash flow, as key measures for purposes of evaluating performance internally. The Company believes that investors’ understanding of its performance is enhanced by disclosing these performance measures. Furthermore, these non-GAAP financial measures are used by management in preparation of the annual budget and for the monthly analyses of its operating results. The Board of Directors also utilizes certain non-GAAP financial measures as components for measuring performance for incentive compensation purposes. Non-GAAP financial measures exclude certain items affecting comparability that can significantly affect the year-over-year assessment of operating results, which include amortization expense and impairment charges related to intangible assets; certain divestiture, acquisition, integration, and restructuring costs ("special project costs"); gains and losses on divestitures; the net change in cumulative unallocated gains and losses on commodity and foreign currency exchange derivative activities ("change in net cumulative unallocated derivative gains and losses"); and other infrequently occurring items that do not directly reflect ongoing operating results. Income taxes, as adjusted is calculated using an adjusted effective income tax rate that is applied to adjusted income before income taxes and reflects the exclusion of the previously discussed items, as well as any adjustments for one-time tax-related activities, when they occur. While this adjusted effective income tax rate does not generally differ materially from the GAAP effective income tax rate, certain exclusions from non-GAAP results can significantly impact the adjusted effective income tax rate. These non-GAAP financial measures are not intended to replace the presentation of financial results in accordance with U.S. GAAP. Rather, the presentation of these non-GAAP financial measures supplements other metrics used by management to internally evaluate its businesses and facilitate the comparison of past and present operations and liquidity. These non-GAAP financial measures may not be comparable to similar measures used by other companies and may exclude certain nondiscretionary expenses and cash payments. A reconciliation of certain non-GAAP financial measures to the comparable GAAP financial measure for the current and prior year periods is included in the "Unaudited Non-GAAP Financial Measures" tables. The Company has also provided a reconciliation of non-GAAP financial measures for its fiscal year 2026 outlook.
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13FY26 Q1 RESULTS SUPPLEMENT UNAUDITED NON-GAAP FINANCIAL MEASURES (Dollars in millions) Three Months Ended July 31, 2025 2024 Increase (Decrease) % Net sales reconciliation: Net sales $2,113.3 $2,125.1 ($11.8) (1%) Sweet Baked Snacks value brands divestiture - (15.7) 15.7 1 Voortman® divestiture - (37.1) 37.1 2 Foreign currency exchange 0.2 - 0.2 - Net sales excluding divestitures and foreign currency exchange $2,113.5 $2,072.3 $41.2 2% Note: Amounts may not add due to rounding
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14FY26 Q1 RESULTS SUPPLEMENT UNAUDITED NON-GAAP FINANCIAL MEASURES (Dollars in millions) Three Months Ended July 31, 2025 2024 Gross profit reconciliation: Gross profit $474.7 $797.2 Change in net cumulative unallocated derivative gains and losses 253.1 30.0 Cost of products sold – special project costs 15.4 5.3 Adjusted gross profit $743.2 $832.5 Operating income reconciliation: Operating income $45.6 $349.5 Amortization 50.2 56.0 Change in net cumulative unallocated derivative gains and losses 253.1 30.0 Cost of products sold – special project costs 15.4 5.3 Other special project costs 6.0 7.1 Adjusted operating income $370.3 $447.9
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15FY26 Q1 RESULTS SUPPLEMENT UNAUDITED NON-GAAP FINANCIAL MEASURES (Dollars and shares in millions, except per share data) Three Months Ended July 31, 2025 2024 Net income (loss) reconciliation: Net income (loss) ($43.9) $185.0 Income tax expense (benefit) (12.6) 61.0 Amortization 50.2 56.0 Change in net cumulative unallocated derivative gains and losses 253.1 30.0 Cost of products sold – special project costs 15.4 5.3 Other special project costs 6.0 7.1 Adjusted income before income taxes $268.2 $344.4 Income taxes, as adjusted 64.8 84.9 Adjusted income $203.4 $259.5 Weighted-average shares outstanding – assuming dilution (A) 106.8 106.5 Adjusted earnings per share – assuming dilution (A) $1.90 $2.44 (A) Adjusted earnings per common share – assuming dilution for the three months ended July 31, 2025 and 2024, was computed using the treasury stock method. Further, for the three months ended July 31, 2025, the weighted-average shares – assuming dilution differed from the Company's GAAP weighted-average common shares outstanding – assuming dilution as a result of the anti-dilutive effect of the Company's stock-based awards, which were excluded from the computation of net loss per share – assuming dilution.
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16FY26 Q1 RESULTS SUPPLEMENT UNAUDITED NON-GAAP FINANCIAL MEASURES Note: Amounts may not add due to rounding (A) Reflects amounts as reported, including acquired and divested businesses while under Company ownership. (Dollars in millions) Three Months Ended TTM Ended Year Ended October 31, 2024 January 31, 2025 April 30, 2025 July 31, 2025 July 31, 2025 April 30, 2025 EBITDA (as adjusted) reconciliation: Net income (loss) ($24.5) ($662.3) ($729.0) ($43.9) ($1,459.7) ($1,230.8) Income tax expense (benefit) 91.3 (0.2) 31.9 (12.6) 110.4 184.0 Interest expense – net 98.7 95.4 94.2 100.2 388.5 388.7 Depreciation 72.2 68.2 69.8 85.0 295.2 283.2 Amortization 55.8 53.9 53.6 50.2 213.5 219.3 Goodwill impairment charges - 794.3 867.3 - 1,661.6 1,661.6 Other intangible assets impairment charges - 208.2 112.7 - 320.9 320.9 Loss (gain) on divestitures – net 260.8 50.2 (0.9) - 310.1 310.1 EBITDA (as adjusted) (A) $554.3 $607.7 $499.6 $178.9 $1,840.5 $2,137.0
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17FY26 Q1 RESULTS SUPPLEMENT NON-GAAP RECONCILIATION Company Guidance Year Ending April 30, 2026 Low High Net income per common share – assuming dilution reconciliation: Net income per common share – assuming dilution $5.54 $6.54 Change in net cumulative unallocated derivative gains and losses (A) 0.61 0.61 Amortization 1.43 1.43 Special project costs 0.58 0.58 Pension plan termination settlement charge (B) 0.32 0.32 Adjusted effective income tax rate impact 0.02 0.02 Adjusted earnings per share $8.50 $9.50 (A) We are unable to project derivative gains and losses on a forward-looking basis as these will vary each quarter based on market conditions and derivative positions taken. The change in unallocated derivative gains and losses in the table above reflects the net impact of the gains and losses that have been recognized in our GAAP results and excluded from non-GAAP results as of July 31, 2025, that are expected to be allocated to non-GAAP results in future periods. (B) Represents a non-recurring pre-tax settlement charge related to the termination of one of the Company's U.S. defined benefit pension plans anticipated to be realized during fiscal year 2026 upon settlement of the pension obligations.
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18FY26 Q1 RESULTS SUPPLEMENT NON-GAAP RECONCILIATION Company Guidance (Dollars in millions) Free cash flow reconciliation: Year Ending April 30, 2026 Net cash provided by operating activities $1,300.0 Additions to property, plant, and equipment (325.0) Free cash flow $975.0
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19FY26 Q1 RESULTS SUPPLEMENT SUPPLEMENTAL SEGMENT INFORMATION (A) Segment cost of products sold excludes special project costs related to certain divestiture, acquisition, integration, and restructuring activities and the change in net cumulative unallocated derivative gains and losses. (B) Segment selling and distribution expenses excludes corporate administrative expenses and special project costs that are not allocated to the segments. (C) Other segment items primarily reflects the loss (gain) on disposal of assets, plant administrative expenses, equity method investment income, and royalty income. (Dollars in millions) Three Months Ended July 31, 2025 U.S. Retail Coffee U.S. Retail Frozen Handheld and Spreads U.S. Retail Pet Foods Sweet Baked Snacks International and Away From Home Total Net sales $717.2 $484.7 $368.0 $253.2 $290.2 $2,113.3 Segment cost of products sold (A) 498.9 299.3 204.8 176.8 190.3 Segment selling and distribution expenses (B) 84.0 70.8 66.8 41.2 35.4 Other segment items (C) 0.1 0.3 (4.9) 1.0 (1.0) Segment profit $134.2 $114.3 $101.3 $34.2 $65.5 $449.5
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20FY26 Q1 RESULTS SUPPLEMENT SUPPLEMENTAL SEGMENT INFORMATION (Dollars in millions) Three Months Ended July 31, 2024 U.S. Retail Coffee U.S. Retail Frozen Handheld and Spreads U.S. Retail Pet Foods Sweet Baked Snacks International and Away From Home Total Net sales $623.4 $496.8 $399.7 $333.7 $271.5 $2,125.1 Segment cost of products sold (A) 372.9 307.2 218.7 210.4 183.4 Segment selling and distribution expenses (B) 77.8 70.6 69.9 49.6 40.3 Other segment items (C) 0.1 - (4.2) (0.7) (0.8) Segment profit $172.6 $119.0 $115.3 $74.4 $48.6 $529.9 (A) Segment cost of products sold excludes special project costs related to certain divestiture, acquisition, integration, and restructuring activities and the change in net cumulative unallocated derivative gains and losses. (B) Segment selling and distribution expenses excludes corporate administrative expenses and special project costs that are not allocated to the segments. (C) Other segment items primarily reflects the loss (gain) on disposal of assets, plant administrative expenses, equity method investment income, and royalty income.
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ADDITIONAL INFORMATION Crystal Beiting Vice President, Investor Relations & FP&A ir.team@jmsmucker.com Phone: (330) 682-3000 Investor Relations Website: https://investors.jmsmucker.com/