Smucker publishes 2022 Annual Report, says 86% of its brands were maintaining or growing share in fiscal Q4 2022; Dunkin', Cafe Bustelo brands were fastest-growing brands in at-home coffee category over past year, and Uncrustables maintained strong growth

Sample article from our Consumer packaged goods (CPG)

Bone , June 17, 2022 (press release) –

ANNUAL REPORT

Fiscal Year 2022

CELEBRATING FISCAL YEAR 2022

When we introduced our updated corporate brand identity, we also unveiled a new color palette to visually represent the Company we have become. Each shade was thoughtfully selected to reflect values that are core to who we are as an organization.

As we look back at fiscal year 2022, it is important to not only reflect on the results we delivered but how we delivered them. We did so by holding true to a heritage that has shaped our values, pushing ourselves to think outside the box to deliver creative and innovative ideas, growing our business and the positive impact we have on all those it touches, retaining our kind spirit and commitment to each other, and being bold in our aspirations.

To all of those who helped support our success in fiscal year 2022, thank you.

F i s c a l Ye a r 2 0 2 2 A n n u a l Re p o r t

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Our fiscal year 2022 results are a reflection of the strength of our organization. Notably, the enduring strength of our strategy, our workforce, and our brands. With this strong foundation, we are well positioned to build on these results to deliver sustained success and support all those who count on our business.

Made important progress on optimizing our portfolio to support increased focus on our growth platforms of coee, pet, and snacking

Delivered best-in-class marketing that continued to generate considerable buzz, social engagement, and industry recognition, including being part of Fast Company's 2022 Most Innovative Companies list

Our Dunkin' ®and Café Bustelo®brands were thefastest-growingbrands in theat-homecoffee category over the last year

Smucker's ® Uncrustables®maintained its strong position as one of thefastest-growingbrands in the category, exceeding $500 million in annual sales a full year ahead of our stated target

Invested in the continued growth of our brands and business, including the announcement of our commitment to build a new manufacturing facility to support our Smucker's®Uncrustables® brand

F i s c a l Ye a r 2 0 2 2 A n n u a l Re p o r t

In fiscal year 2022, our Company delivered tremendous results while progressing on our vision to engage, delight, and inspire consumers by building brands they love and leading in growing categories, despite a dynamic and challenging environment. This strong performance was driven by our talented employees, who were unwavering in their commitment to overcome obstacles, deliver for consumers, and achieve our business objectives. Our results also reflect the strength of our strategy and the continued momentum of brands throughout our portfolio.

Notable achievements from the past year include:

  • The continued momentum of our brands: In the fourth quarter of our fiscal year 2022, 86% of our brands were maintaining or growing share, reflecting the enduring popularity of brands across our portfolio.
  • Smucker's® Uncrustables®continued to deliver exceptional results. In fiscal year 2022, the brand exceeded $500 million in total sales, one year ahead of our stated target. Additionally, we announced plans to launch a third manufacturing facility dedicated to the production of Uncrustables®to support demand for the product and to deliver on our goal of $1 billion in annual net sales for the brand over the next five years.
  • Our leadership in the coffee category was paced by ourDunkin'® and Café Bustelo® brands, which were the fastest-growing brands in the at-home coffee category over the past year.
  • In fiscal year 2022, ourMilk-Bone® net sales grew 11% and our Meow Mix® brand recently took over as the leader in dry cat food consumption.

In addition to driving top-line growth, we remain committed to delivering on our executional priorities and becoming a more focused, efficient, and agile organization. Highlights of our progress this past fiscal year include:

  • Drive commercial excellence:We continued to deliver bold marketing that gives our brands cultural relevance. The transformation of our marketing has driven incredible consumer buzz and earned widespread industry recognition, including helping us eaa spot on Fast Company's 2022 Most Innovative Companies list. We also delivered strongin-storeexecution, supported by our enhanced utilization of data and analytics, which drove effective decision- making and allowed us to help our retail customers better serve consumers.
  • Streamline our cost infrastructure:We maintained our focus on cost management and productivity enhancements while successfully implementinginflation-drivennet pricing actions.
  • Reshape our portfolio: Our portfolio optimization work continued in fiscal year 2022, including the divestiture of our natural beverage and grains businesses and our private-label dry pet food business. These decisions, while hard, allow us to devote greater resources to our core strategies

across our coffee, pet, and snacking categories.

  • Unleash our organization to win:We prioritized activities that supported our commitment to win in the marketplace, helping our employees focus on what matters most to the business. We also made important progress on our journey to advance our inclusion, diversity, and equity efforts, including introducing our first employee resource groups to create a greater sense of community and to foster allyship.

F i s c a l Ye a r 2 0 2 2 A n n u a l Re p o r t

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In addition to our financial and organizational successes, we continue to make meaningful progress on our Thriving Together agenda, which guides our response to key environmental, social, and governance issues. Our Thriving Together agenda is focused on supporting those who count on our business in the areas of quality food availability, access to education, equitable and ethical treatment for all, connections to community resources, and a healthier planet.

Along with making a positive impact across our areas of focus, we also continued to provide important transparency on our progress by issuing public disclosures based on standards established by the Task Force for Climate-Related Financial Disclosures and Sustainability Accounting Standards Board.

Fiscal Year 2022 Performance

In fi scal year 2022, we delivered $8.0 billion in net sales and met several performance goals. Financial highlights from the past year include:

  • Adjusted earnings per share of $8.88
  • Free cash flow of $718.8 million
  • Capital returned to shareholders via cash dividends and share repurchases was $688.5 million

Our Vision for the Year Ahead

As we continue to deal with a dynamic operating environment and related distractions, it is critical we maintain our unrelenting focus on what drives our Company forward. In this spirit, we have established the following fiscal year 2023 priorities to support the continued momentum of our business and the important progress we have made as an organization.

  • Nurture and invest in our culture;
  • Drive prioritization and best-in-class execution;
  • Improve profitability and cost discipline;
  • Transform our portfolio; and
  • Improve diversity and foster inclusion & equity.

I am confi dent in the strength of our strategy, vision, and culture and energized by the opportunity we have to achieve long-term, sustainable success.

Our ability to deliver on our objectives amid the challenges faced is thanks to the dedication of our employees, partners, and shareholders. Because of your continued commitment to our consumer-centric growth philosophy and your dedication to achieving our executional priorities, we are well positioned for another successful year in fi scal year 2023.

Mark T. Smucker

President and Chief Executive Officer

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Disclaimer

The J. M. Smucker Company published this content on 17 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 June 2022 13:04:24 UTC.

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