J.M. Smucker (SJM) official guidance

Other key assumptions affecting cash flow include depreciation expense of approximately $290 million, amortization expense of approximately $230 million, share-based compensation expense of $30 million, and other non-cash charges of $50 million.

Free cash flow is now expected to be $1.1 billion at the midpoint of our adjusted earnings per share guidance range, with capital expenditures of $325.0 million.

We project free cash flow of $1 billion with capital expenditures of $325 million for the year.

| Capital expenditures (in millions) | $325.0 | |

Within our full year outlook, we expect mid-single-digit percent deflation, largely driven by green coffee.

Excluding green coffee and tariffs, we anticipate cost inflation of low single digits.

Other key assumptions affecting cash flow include depreciation expense of approximately $290 million, amortization expense of approximately $230 million, share-based compensation expense of $30 million, and other non-cash charges of $50 million.

This updated guidance reflects the decrease in net sales, adjusted gross profit margin of approximately 38.75 percent, which now includes approximately $115.0 million of tariff refunds received in the first quarter, an increase of SD&A expenses of approximately 8.0 percent versus the prior year, interest expense of approximately $335.0 million, an adjusted effective income tax rate of 24.2 percent, and 107.1 million weighted-average common shares outstanding.

Our adjusted effective income tax rate is anticipated to be 24.3%, along with a full year weighted average share count of 107 million.

This guidance reflects the decrease in net sales, adjusted gross profit margin of approximately 38.0 percent, an increase of SD&A expenses of approximately 5.0 percent versus the prior year, interest expense of approximately $345.0 million, an adjusted effective income tax rate of 24.3 percent, and 107.0 million weighted-average common shares outstanding.

| Adjusted effective income tax rate | 24.2 | % | 24.3 | % |

Our adjusted effective income tax rate is anticipated to be 24.3%, along with a full year weighted average share count of 107 million.

| Adjusted effective income tax rate | 24.3 | % |

Adjusted earnings per share is now expected to range from $10.50 to $11.00.

Adjusted earnings per share is expected to be in the range of $9.75-$10.25, which reflects a 9% increase at the midpoint of our guidance range.

The Company provided its fiscal year 2027 outlook, with net sales expected to decrease 3.0 to 4.0 percent, adjusted earnings per share to range from $9.75 to $10.25, and free cash flow of approximately $1.0 billion.

Free cash flow is now expected to be $1.1 billion at the midpoint of our adjusted earnings per share guidance range, with capital expenditures of $325.0 million.

Free cash flow is expected to be $1 billion.

The Company provided its fiscal year 2027 outlook, with net sales expected to decrease 3.0 to 4.0 percent, adjusted earnings per share to range from $9.75 to $10.25, and free cash flow of approximately $1.0 billion.

This updated guidance reflects the decrease in net sales, adjusted gross profit margin of approximately 38.75 percent, which now includes approximately $115.0 million of tariff refunds received in the first quarter, an increase of SD&A expenses of approximately 8.0 percent versus the prior year, interest expense of approximately $335.0 million, an adjusted effective income tax rate of 24.2 percent, and 107.1 million weighted-average common shares outstanding.

We anticipate full year adjusted gross profit margin to expand roughly 300 basis points to approximately 38%.

This guidance reflects the decrease in net sales, adjusted gross profit margin of approximately 38.0 percent, an increase of SD&A expenses of approximately 5.0 percent versus the prior year, interest expense of approximately $345.0 million, an adjusted effective income tax rate of 24.3 percent, and 107.0 million weighted-average common shares outstanding.

This updated guidance reflects the decrease in net sales, adjusted gross profit margin of approximately 38.75 percent, which now includes approximately $115.0 million of tariff refunds received in the first quarter, an increase of SD&A expenses of approximately 8.0 percent versus the prior year, interest expense of approximately $335.0 million, an adjusted effective income tax rate of 24.2 percent, and 107.1 million weighted-average common shares outstanding.

We anticipate net interest expense of approximately $345 million, driven by continued debt paydown.

This guidance reflects the decrease in net sales, adjusted gross profit margin of approximately 38.0 percent, an increase of SD&A expenses of approximately 5.0 percent versus the prior year, interest expense of approximately $345.0 million, an adjusted effective income tax rate of 24.3 percent, and 107.0 million weighted-average common shares outstanding.

Total marketing expense is estimated to be 5.7% of net sales, an increase of 60 basis points or approximately $30 million versus the prior year.

As such, we are planning for a mid-single-digit percentage decline in net price realization for our U.S. retail coffee segment.

This updated guidance reflects the decrease in net sales, adjusted gross profit margin of approximately 38.75 percent, which now includes approximately $115.0 million of tariff refunds received in the first quarter, an increase of SD&A expenses of approximately 8.0 percent versus the prior year, interest expense of approximately $335.0 million, an adjusted effective income tax rate of 24.2 percent, and 107.1 million weighted-average common shares outstanding.

SG&A expenses are projected to increase by approximately 5%, reflecting increased marketing investments in our key growth platforms and higher administrative expenses.

This guidance reflects the decrease in net sales, adjusted gross profit margin of approximately 38.0 percent, an increase of SD&A expenses of approximately 5.0 percent versus the prior year, interest expense of approximately $345.0 million, an adjusted effective income tax rate of 24.3 percent, and 107.0 million weighted-average common shares outstanding.

The adjusted earnings per share range now includes a net benefit of approximately $0.60 related to the receipt of tariff refunds, which reflects the $0.84 benefit from tariff refunds received in the first quarter, net of planned investments in SD&A expenses.

Other key assumptions affecting cash flow include depreciation expense of approximately $290 million, amortization expense of approximately $230 million, share-based compensation expense of $30 million, and other non-cash charges of $50 million.

The net sales decline is primarily due to a high single-digit decrease in sales within the U.S. Retail Coffee segment, reflecting the impact of anticipated green coffee deflation.

For the remainder of the portfolio, we expect low double-digit declines in net sales for the sweet baked snacks and U.S. Retail Frozen Handheld and Spreads businesses, which will be mostly offset by low single-digit growth in U.S. retail pet foods and Away From Home.