Folgers Coffee maker J.M. Smucker Co reported a 9 percent drop in quarterly profit, as lower coffee prices hurt sales.
Net income fell 9 percent to $118.5 million, or $1.16 per share, in the fourth quarter ended April 30 from $130.3 million, or $1.22 per share, a year earlier.
Excluding items, the company earned $1.21 per share.
Net sales fell 8 percent to $1.23 billion, hurt by a 12 percent drop in sales in its U.S. retail coffee business as it cut prices to pass on lower green coffee costs realized during the year.
The company sells Folgers and Dunkin Donuts packaged coffee in its retail coffee business. Sales volumes for both brands rose 1 percent in the quarter, the company said.
Analysts on average had expected Smucker to earn $1.16 per share on sales of $1.24 billion, according to Thomson Reuters I/B/E/S.
The company, which also makes Jif peanut butter and Crisco Oils, forecast adjusted earnings of $5.95-$6.05 per share on net sales growth of about 5 percent for the year ending April 2015. This implies revenue of about $5.89 billion, according to Reuters calculations.
Analysts on an average were expecting earnings of $5.98 on revenue of $5.77 billion. (