J.M. Smucker Revenue Declines
November 17 2016 - 9:40AM
Dow Jones News
J.M. Smucker Co. posted a revenue decline in its latest quarter,
as the company faced lower prices and volumes across many of its
units.
Still, lower commodity prices and manufacturing costs helped
profit edge higher.
Shares fell 2.3% in premarket trading.
Like other food companies, the Ohio maker of its namesake jams,
as well as Pillsbury baking mixes, Folgers coffee and Jif peanut
butter, has contended with consumers' shift away from packaged
goods and toward options seen as fresher and more natural.
In recent moves to diversify its business and respond to
changing consumer preferences, Smucker last year bought Big Heart
Pet Brands for about $3.2 billion. Last November, Smucker agreed to
sell its canned-milk business, which took $67.7 million off its top
line in the quarter.
On Thursday, the company attributed the revenue decline to lower
coffee prices, and said results were hurt by its pet foods segment
and by the Folgers and Jif brands.
In all for the quarter, the company reported a profit of $177.3
million, or $1.52 a share, up from $176 million, or $1.47 a share,
a year earlier. Excluding certain items, earnings per share rose to
$2.05 from $1.91.
Revenue fell 7.9% to $1.91 billion.
Analysts polled by Thomson Reuters had expected adjusted
earnings of $1.93 a share and $2 billion in revenue.
Smucker reaffirmed its forecast for fiscal 2017.
Its coffee business posted a 6% decline in sales due to
decreased pricing but profit increased thanks to lower commodity
and manufacturing overhead costs.
Its pet foods business also posted a 6% decline in sales, driven
by its Meow Mix and Kibbles 'n Bits brands.
Its U.S. retail consumer foods business posted a 13% decline in
revenue, driven by the sale of its canned-milk unit, and a 4%
decline excluding the divestiture. The Jif and Pillsbury brands
drove the revenue decline in the segment while the Uncrustables
frozen sandwiches partially offsetting it.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
November 17, 2016 09:25 ET (14:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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