Food products company J.M. Smucker (NYSE: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.
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.
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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.
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.