Revenue during the quarter dropped 7.88 percent to $1,913.90 million from $2,077.70 million in the previous year period. Gross margin for the quarter expanded 92 basis points over the previous year period to 38.82 percent. Total expenses were 84.15 percent of quarterly revenues, down from 84.90 percent for the same period last year. This has led to an improvement of 74 basis points in operating margin to 15.85 percent.

Operating income for the quarter was $303.30 million, compared with $313.80 million in the previous year period.

However, the adjusted operating income for the quarter was almost stable at $396.20 million when compared with the prior year period. At the same time, adjusted operating margin improved 172 basis points in the quarter to 20.70 percent from 18.98 percent in the last year period.

"We delivered record adjusted earnings per share for the fiscal second quarter," said Mark Smucker, Chief Executive Officer. "We continue to make significant progress against our current year priorities and long-term goals. These include achieving sustainable cost reductions that both support the bottom-line and fuel investments in the continued growth of our brands. As an example, we are excited to announce the launch of Nature's Recipe® premium pet food into grocery and mass merchandise outlets later this fiscal year. We are aggressively pursuing a variety of growth opportunities and remain confident about enhancing shareholder value."

For financial year 2017, the company forecasts diluted earnings per share to be in the range of $5.85 to $6. The company forecasts diluted earnings per share to be in the range of $7.60 to $7.75 on adjusted basis.

Cash flow from investing activities was almost stable for the quarter at $96.30 million, when compared with the previous year period. It has incurred net capital expenditure of $83.60 million on net basis during the first six months, down 28.67 percent or $33.60 million from year ago period.

The company has spent $261.10 million cash to carry out financing activities during the first six months as against cash outgo of $469.40 million in the last year period.

Cash and cash equivalents stood at $121.80 million as on Oct. 31, 2016, down 12.37 percent or $17.20 million from $139 million on Oct. 31, 2015.

Working capital drops significantly
The J. M. Smucker Company has witnessed a decline in the working capital over the last year. It stood at $498.90 million as at Oct. 31, 2016, down 42.87 percent or $374.40 million from $873.30 million on Oct. 31, 2015. Current ratio was at 1.38 as on Oct. 31, 2016, down from 1.77 on Oct. 31, 2015.

Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 79 days for the last year period. Days sales outstanding were almost stable at 25 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 40 days for the quarter compared with 79 days for the previous year period. At the same time, days payable outstanding went up to 31 days for the quarter from 25 for the same period last year.