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ORRVILLE, OH - The J.M. Smucker Company (NYSE:SJM), a leader in the food industry, disclosed changes to its executive compensation program and the results of its Annual Meeting of Shareholders in a recent 8-K filing with the Securities and Exchange Commission.
The company's Compensation and People Committee, as detailed in the 2024 Proxy Statement, has made significant adjustments to the long-term incentive compensation for fiscal year 2025.
In an August meeting, the committee set new performance targets, shifting from a focus on return on invested capital to average net sales growth.
Performance unit awards, which vest after three years, will now be based 75% on adjusted earnings per share and 25% on average net sales growth.
At the virtual Annual Meeting held on August 14, 2024, shareholders elected ten Directors to serve a one-year term expiring at the 2025 Annual Meeting. The election saw Directors like Mark T. Smucker and Mercedes Abramo receive strong support, with the majority of votes cast in their favor.
Additionally, shareholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending April 30, 2025, and approved, on an advisory basis, the executive compensation as outlined in the Proxy Statement.
In other recent news, J.M. Smucker Co. is reportedly exploring the sale of its Voortman Bakery brand, a move that could potentially exceed a valuation of $350 million.
Goldman Sachs has been engaged to facilitate the sale process. This development comes in the wake of the company's decision to increase its quarterly dividend to $1.08 per share, marking the 23rd consecutive year of dividend growth.
Analysts have also been active in their assessments of the company. Argus has maintained a Buy rating on Smucker's stock, although they reduced their price target to $135 from $150.
Similarly, DA Davidson lowered its price target on Smucker's shares to $126 from $132, but kept a Neutral rating. TD Cowen reduced its price target to $135 from $140, but sustained a Buy rating.
In its most recent financial report, Smucker announced an 8% increase in full-year net sales and an adjusted earnings per share (EPS) of $9.94 for Fiscal 2024, largely due to the acquisition of Hostess Brands (NASDAQ:TWNK). Despite a 1% decline in net sales in the fourth quarter, the company projects a net sales growth of 2% and an adjusted EPS of $10.00 for Fiscal 2025. Challenges such as higher commodity costs and expenses for a new Uncrustables facility are expected to impact margins, but the company maintains a positive outlook, planning to prioritize debt reduction while expecting adjusted EPS growth in Fiscal 2026.
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