JM Smucker Company (SJM)
Profitability ratios
Return on sales
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.79% | 38.09% | 32.85% | 33.76% | 39.22% |
| Operating profit margin | -7.72% | 15.97% | 1.85% | 12.80% | 17.33% |
| Pretax margin | -12.00% | 12.18% | -0.11% | 10.55% | 14.64% |
| Net profit margin | -14.10% | 9.10% | -1.07% | 7.90% | 10.95% |
Analyzing the profitability ratios of JM Smucker Company over the period from April 30, 2021, to April 30, 2025, reveals notable fluctuations and trends indicative of the company's evolving financial performance.
Gross Profit Margin:
The gross profit margin experienced a decline from 39.22% in 2021 to 33.76% in 2022 and further to 32.85% in 2023, suggesting increasing cost pressures or changes in product mix impacting gross profitability. However, there was a rebound in 2024 to 38.09%, followed by a slight increase to 38.79% in 2025, indicating improved cost management or favorable sales mix adjustments during these years.
Operating Profit Margin:
The operating profit margin shows a significant decline from 17.33% in 2021 to 12.80% in 2022, and a sharp drop to 1.85% in 2023, reflecting potential operational challenges or increased operating expenses. Subsequently, there was a recovery with a margin of 15.97% in 2024, but this was followed by a substantial negative margin of -7.72% in 2025, highlighting operational setbacks or restructuring costs impacting operating profitability.
Pretax Margin:
Similarly, the pretax margin decreased from 14.64% in 2021 to 10.55% in 2022, then turned negative at -0.11% in 2023, illustrating diminished pre-tax profitability likely connected to the same issues affecting operating income. The margin improved again in 2024 to 12.18% but fell to -12.00% in 2025, consistent with the reported negative net results for this period.
Net Profit Margin:
The net profit margin followed a comparable pattern, decreasing from 10.95% in 2021 to 7.90% in 2022, then turning negative at -1.07% in 2023, reflecting net losses. The margin recovered to 9.10% in 2024, indicating a return to profitability, yet it deteriorated markedly to -14.10% in 2025, signifying significant net losses sustained during this year.
Overall, the company’s profitability ratios initially declined from 2021 through 2023, reaching negative territory in 2023, which points to operational and net income challenges during that period. The subsequent partial recoveries in 2024 suggest some improvement; however, the significant downturn in 2025 underscores serious profitability issues that require attention. This pattern implies that external pressures, cost management challenges, or structural company changes may have contributed to the volatility observed in JM Smucker’s profitability metrics over the analyzed years.
Return on investment
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -3.84% | 6.44% | 1.05% | 6.38% | 8.52% |
| Return on assets (ROA) | -7.01% | 3.67% | -0.61% | 3.93% | 5.38% |
| Return on total capital | -19.34% | 16.39% | 1.96% | 12.34% | 16.60% |
| Return on equity (ROE) | -20.23% | 9.67% | -1.25% | 7.76% | 10.79% |
The analysis of JM Smucker Company's profitability ratios over the specified periods reveals notable fluctuations and trends.
Beginning with the Operating Return on Assets (Operating ROA), the ratio declined from 8.52% in April 2021 to 6.38% in April 2022, followed by a steep decrease to 1.05% in April 2023, indicating a significant dip in operational efficiency. Subsequently, the ratio recovered to 6.44% in April 2024 but then declined again to -3.84% by April 2025, reflecting oscillations in the company's core operating profitability.
The Return on Assets (ROA) demonstrated a downward trend over the period, dropping from 5.38% in 2021 to 3.93% in 2022 and turning negative at -0.61% in 2023. It rebounded slightly to 3.67% in 2024 but again fell into negative territory at -7.01% in 2025, indicating a decline in overall asset efficiency and profitability after accounting for all expenses, including non-operating factors.
The Return on Total Capital, which assesses profitability in relation to all invested capital, followed a similar pattern. It decreased sharply from 16.60% in 2021 to 12.34% in 2022, then to a minimal 1.96% in 2023. The ratio recovered markedly to 16.39% in 2024 but again turned negative at -19.34% in 2025, highlighting periods of minimal or negative returns on capital employed.
Lastly, the Return on Equity (ROE) experienced a decline from 10.79% in 2021 to 7.76% in 2022, then entered negative territory at -1.25% in 2023. It improved to 9.67% in 2024 but again deteriorated sharply to -20.23% in 2025, indicating a period of shareholders' value destruction and diminished profitability from the shareholders' perspective.
Overall, these ratios depict a pattern of declining profitability in the periods following 2021, with notable negative returns emerging by 2023 and persisting through 2025, reflecting operational, asset management, and equity return challenges for JM Smucker Company during this timeframe.