JM Smucker Company (SJM)
Pretax margin
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -1,046,800 | 996,400 | -9,200 | 843,800 | 1,171,900 |
| Revenue | US$ in thousands | 8,726,100 | 8,178,700 | 8,529,200 | 7,998,900 | 8,002,700 |
| Pretax margin | -12.00% | 12.18% | -0.11% | 10.55% | 14.64% |
April 30, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $-1,046,800K ÷ $8,726,100K
= -12.00%
The pretax margin of JM Smucker Company has exhibited significant variability over the five-year period under review. As of April 30, 2021, the pretax margin was 14.64%, indicating a healthy level of profitability before taxes. In the subsequent year, this margin declined to 10.55%, reflecting decreased profitability or increased costs relative to revenue in that fiscal period.
By April 30, 2023, the pretax margin sharply turned negative at -0.11%, suggesting that the company incurred a pretax loss, potentially due to extraordinary expenses, restructuring costs, or operational challenges. This negative margin marks a substantial departure from previous positive margins and indicates a period of significant financial strain.
However, by April 30, 2024, the pretax margin recovered to 12.18%, reverting to a positive profitability level, which indicates an improvement in operating performance or cost management efforts. Nonetheless, the outlook projected for April 30, 2025, forecasts a substantial decline to -12.00%, implying a return to a pretax loss and highlighting potential ongoing or new operational difficulties.
Overall, the pretax margin trend demonstrates considerable fluctuation, characterized by periods of solid earnings, abrupt losses, and partial recovery. These variations may reflect underlying changes in market conditions, cost structures, product mix, or strategic initiatives undertaken by the company during this timeframe.