J.M. Smucker 4Q Profit Beats on Higher Prices

By Markets FOXBusiness

Food products company J.M. Smucker (SJM) narrowed its fourth-quarter profit but still swung ahead of estimates with the help of higher coffee prices and strong sales across most of its brands.

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The maker of Folgers coffee, Jif peanut butter and Pillsbury posted net income of $94.9 million, or 82 cents a share, down 21% compared with $120.6 million, or $1.01 a share, in the same quarter last year.

Excluding one-time items, Smucker earned a dollar a share, just ahead of average analyst estimates polled by Thomson Reuters of 99 cents.

Revenue for the three months ended April 30 was $1.19 billion, up 11% from $1.07 billion a year ago, narrowly beating the Streets view of $1.17 billion.

Our long-term focus and strategy of owning and marketing leading brands have allowed us to deliver another year of strong sales and earnings, Tim Smucker, the companys co-chief executive said in a statement. We are gratified to have achieved these results in a challenging operating environment.

Sales growth was led by higher volumes of Pillsbury baking mixes and frostings, Jif, Folgers, Crisco oils, Bicks pickles and Smuckers fruit spreads.

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During the quarter, Smucker raised prices on its packaged coffee brands to deal with high raw material costs. Its U.S. retail coffee segments saw sales rise 21% during the period.

Looking ahead, Smucker said it sees non-GAAP earnings in the range of $5 to $5.15 a share during the fiscal year. Analysts are expecting earnings of $5.12 a share.

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