J.M. Smucker repays $130 million of net debt; leverage sinks to 3.6x

By Devika Patel

Knoxville, Tenn., Aug. 27 – J.M. Smucker Co. paid down $130 million of net debt last quarter, reducing its leverage ratio to 3.6x at quarter-end.

The company plans to pay down an additional $400 million of debt by year-end, which will cut its leverage further.

“The company continued its intention of deleveraging by paying down $130 million of net debt in the quarter, bringing net debt repayments to more than $900 million in the past 12 months,” vice chair and chief financial officer Mark R. Belgya said on the company’s first quarter ended July 31 earnings conference call on Tuesday.

“We finished the quarter with a total debt balance of just under $5.8 billion.

“Based on a trailing 12 months’ EBITDA of approximately $1.6 billion, our leverage ratio was reduced to 3.6x.

“We will continue to prioritize cash for debt reductions and expect to repay an additional $400 million by year-end, taking our leverage down to just above 3x at the end of the fiscal year,” he said.

Cash and cash equivalents were $48.8 million as of July 31, compared to $101.3 million as of April 30.

Long-term debt, less current portion, was $4,685,300,000 as of July 31, compared to $4,686,300,000 as of April 30.

Orrville, Ohio-based Smucker makes fruit spreads, coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk and other foods products.

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