J.M. Smucker (NYSE:SJM) revealed on Thursday an improved first-quarter profit on higher prices, however the results still disappointed Wall Street as demand softened for Folgers coffee and other core brands.
The Orrville, Ohio-based maker of food products under brands such as Pillsbury, Dunkin Donuts instant, Smuckers, Jif and Hungry Jack posted net income of $111.5 million, or 98 cents a share.
The results were up 8% compared with a year ago $102.9 million, or 86 cents a share, but were short of average analyst estimates polled by Thomson Reuters of $1.09.
Revenue for the three months ended July 31 was $1.19 billion, up 14% from $1.05 billion a year ago, missing the Streets view of $1.25 billion.
We delivered strong sales and earnings growth this quarter, with net price realization across most categories and contributions from the recently acquired Rowland Coffee business, the companys chief executive Richard Smucker said in a statement.
After raising prices for coffee products earlier this year, the company said it is now pleased and encouraged costs have moderated in the green coffee markets. The U.S. coffee market saw a 27% increase in sales for the first quarter.
While the market place remains very competitive, we are confident in our team's ability to respond swiftly in the current environment to meet the needs of our consumers, Smucker said.
Volume growth in Pillsbury baking mixes and natural food beverages were more than offset by volume declines in Folgers, Jif peanut butter and Crisco oils.