Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  The JM Smucker Company    SJM

THE JM SMUCKER COMPANY

(SJM)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

JM Smucker : Smucker Hit by Lower Prices for Its Coffee and Peanut Butter

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/27/2019 | 12:16pm EDT

By Micah Maidenberg

J.M. Smucker Co. reported weaker sales in its latest quarter, as the food manufacturer passed along to retailers savings from lower costs for raw materials like coffee beans and peanuts.

The Orrville, Ohio-based company also faced heightened competition in its pet-food business and said its Rachael Ray Nutrish pet-food brand underperformed expectations in the quarter, which ended July 31.

Shares of the company fell about 9% in Tuesday morning trading after it said that net sales declined 6% to $1.78 billion, missing the consensus estimate of $1.87 billion, according to FactSet. Smucker also lowered its sales forecast for the rest of its current fiscal year.

Smucker's struggles in the quarter stand in contrast to a number of its peers. Companies including Oreo-maker Mondelez International Inc. and Kellogg Co. have bolstered results and offset rising costs by convincing retailers in the U.S. and Canada to pay higher prices for their products.

Yet Chief Executive Mark Smucker said in an interview that the company is charging retailers less for some of its products because of falling prices for commodities it relies on heavily.

"It is an issue of deflation. Peanut costs and coffee costs, from a commodities perspective, are at some of the lowest prices that they've been in in decades. We're reflecting that," he said. The company is focused on boosting sales of coffee products and peanut butters by spending on marketing, Mr. Smucker added.

The company said the prices it charges retailers declined 3% in its coffee business amid what Smucker said were significantly lower costs for green-coffee beans it uses in brands like Folgers and Cafe Bustelo. This spring, prices for arabica beans hit their lowest price in more than a decade.

Smucker also said that prices dropped 4% in its consumer-foods business, driven lower by a cut in what it charges retailers for its Jif peanut butter. The company has said it cut the price due to competition, including from retailers' store brands, and because of lower peanut prices.

The company's pet-food business faced significant competition in the quarter, as other pet-food makers lowered prices for higher-end products to draw in consumers.

"We did not fully anticipate how broad and aggressive some of the pricing actions would be on trial sizes," for premium dog food products, Mr. Smucker said.

Smucker has bet big on pet food, purchasing last year the producer of Nutrish pet-food brand for $1.7 billion. But General Mills Inc., which bought the maker of Blue Buffalo pet food in a deal also completed last year, has been expanding distribution of those products.

The Nutrish brand underperformed expectations in the latest quarter, executives said. The company now plans to tweak its offers on Nutrish products and support it with advertising.

The food company on Tuesday also lowered its forecast for its current fiscal year. It now expects net sales for the year to be flat or fall 1% compared with the prior year. Previously, Smucker predicted sales would grow between 1% and 2%.

The company reported a profit of $154.6 million, or $1.36 a share, for the quarter that ended July 31, compared with $133 million, or $1.17 a share, a year earlier.

After adjustments, Smucker's profit of $1.58 a share fell short of expectations of $1.74 a share.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
LONDON COFFEE -1.07% 1765 End-of-day quote.0.00%
THE JM SMUCKER COMPANY -0.62% 107.62 Delayed Quote.15.11%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on THE JM SMUCKER COMPANY
10/10JM SMUCKER : Flour recalled due to possible E. coli contamination
AQ
10/03JM SMUCKER : The J. M. Smucker Company Issues Voluntary Recall of Specific Lots ..
PU
10/03THE J. M. SMUCKER COMPANY : Issues Voluntary Recall of Specific Lots of Robin Ho..
PR
09/26JM SMUCKER : The J. M. Smucker Company Announces Benefits Enhancements to Furthe..
PU
09/26THE J. M. SMUCKER COMPANY : Announces Benefits Enhancements to Further Support E..
PR
09/18Sales at General Mills Hurt by Weaker Demand for Snacks, Meals Businesses
DJ
09/02JM SMUCKER : Bodega-Born Café Bustelo® Coffee Makes National Advertising Debut i..
PU
09/02NEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
09/02NEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
09/01NEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
More news
Financials (USD)
Sales 2020 7 717 M
EBIT 2020 1 465 M
Net income 2020 763 M
Debt 2020 5 263 M
Yield 2020 3,29%
P/E ratio 2020 15,8x
P/E ratio 2021 15,1x
EV / Sales2020 2,27x
EV / Sales2021 2,19x
Capitalization 12 274 M
Chart THE JM SMUCKER COMPANY
Duration : Period :
The JM Smucker Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends THE JM SMUCKER COMPANY
Short TermMid-TermLong Term
TrendsNeutralBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 15
Average target price 107,85  $
Last Close Price 107,62  $
Spread / Highest target 13,4%
Spread / Average Target 0,21%
Spread / Lowest Target -13,6%
EPS Revisions
Managers
NameTitle
Mark T. Smucker President, Chief Executive Officer & Director
Richard K. Smucker Executive Chairman
James Randal Day Senior Vice President-Operations
Mark R. Belgya Vice Chairman, CFO & Principal Accounting Officer
Timothy P. Smucker Chairman-Emeritus
Sector and Competitors
1st jan.Capitalization (M$)
THE JM SMUCKER COMPANY15.11%12 274
KERRY GROUP20.23%20 448
TREEHOUSE FOODS, INC.6.33%3 030
CHONGQING FULING ZHACAI GROUP CO LTD--.--%2 526
BONDUELLE-17.61%836
HAOXIANGNI HEALTH FOOD CO LTD--.--%641