The J. M. Smucker Company (NYSE:SJM) Q4 2019 Earnings Conference Call Transcript

Jun 06, 2019 • 08:30 am ET

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The J. M. Smucker Company (NYSE:SJM) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, and welcome to The J.M. Smucker Company's Fiscal 2019 Forth Quarter Earnings Conference Call. This conference call is being recorded, and all participants are in a listen-only mode. (Operator Instruction)

I will now turn the conference call over to Aaron Broholm, Vice President, Investor Relations. Please go ahead, sir.

Executive
Aaron Broholm

Good morning, and thank you for joining us for our fiscal 2019 fourth quarter earnings conference call. Mark Smucker, President and CEO; and Mark Belgya, Vice Chair and CFO will provide our prepared comments. Also participating in the Q&A are Tina Floyd, Senior Vice President and General Manager, Consumer Foods; Dave Lemmon, President, Pet Food and Pet Snacks; and Joe Stanziano, Senior Vice President and General Manager, Coffee.

During today's call we will make forward-looking statements that reflect the Company's current expectations about future plans and performance. These statements rely on assumptions and estimates and actual results may differ materially due to risks and uncertainties. I encourage you to read the full disclosure concerning forward-looking statements in this morning's press release, which is located on our corporate website at jmsmucker.com.

Additionally, please note the Company uses non-GAAP results to evaluate performance internally, as detailed in our press release. We have posted a supplementary slide deck summarizing the quarterly results and fiscal 2020 full-year outlook. The slides can be accessed on our website and will be archived there, along with a replay of this call. If you have additional questions after today's call, please contact me.

I will now turn the call over to Mark Smucker.

Executive
Mark T. Smucker

Thank you, Aaron. Good morning everyone and thank you for joining us. I want to begin with the progress we've made over the past fiscal year, before moving to our fourth quarter results. Fiscal 2019 was another successful year for the Company, as we executed against our three growth imperatives, leading in the best categories, building brands, consumers love, and being everywhere. And continue to undergo significant transformation aimed at better aligning our portfolio and product towards consumer trends and preferences, while positioning our Company for sustainable long-term growth. This was done in several ways, over the past year.

First, we continue to reshape our portfolio including the successful acquisition and integration of Ainsworth Pet Nutrition, which achieved year-over-year sales growth of 20% and the divestiture of our U.S. baking business allowing us to increase our focus and resources on higher growth categories. Second, our strengthened approach innovation delivered $420 million of net sales from products launched in the last three years, including contributions from 1850 coffee and Jif Power Ups, as both platforms ranked in the top quartile of all food product launches this past year.

Third, we improved our organizations operating model by consolidating our geographic footprint, unlocking cost savings and significant capability enhancement as our teams are now more agile. Fourth, we implemented our (technical difficulty) power ups marketing model which aims to improve the quality of our consumer engagement and increase productivity, while yielding cost reductions that will fund new investments