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

Weak dog food sales hit Smucker results; shares tumble

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/27/2019 | 11:30am EST
Containers of Smuckers's Jam are displayed in a supermarket in New York

(Reuters) - J. M. Smucker Co cut its full-year earnings forecast and reported disappointing quarterly results on Tuesday, as sales of its Nutrish dog food brand were hit by fierce competition, triggering a 10% drop in its shares.

Smucker has been betting on its pet food business by adding brands such as Milk Bone and celebrity chef Rachel Ray's Nutrish through the acquisition of Big Heart Pet Brands and Ainsworth Pet Nutrition.

However, Nutrish came under pressure as top dog food brands wrestled for market share in a red-hot premium pet food industry by rolling out products at competitive prices.

"We did not fully anticipate how aggressive some of the competition would be on pricing, particularly in trial-sized products," Chief Executive Officer Mark Smucker told Reuters.

"We do believe that this pricing that we've seen in markets is at an unsustainable level. We will respond with pricing, in-store merchandising and advertising."

Sales in its pet food unit, which also makes Meow Mix cat food, fell 7% in the first quarter from the previous quarter. The business is Smucker's biggest, accounting for more than a third of its sales.

The CEO said he expects softness in Nutrish's sales to continue in the second quarter and expects the dog food brand to grow in mid-to-high single digits for the rest of the year.

COFFEE BUSINESS COOLS

Sales of Smucker's coffee and peanut butter were also disappointing, as it lowered prices to boost demand.

Packaged food companies are facing stiff competition from upstart brands, which are winning more shelf space in supermarkets across the United States as more consumers experiment with new flavors and ingredients.

Sales fell 5% in Smucker's coffee business and 17% in consumer foods business, which includes Jif peanut butter, from a year earlier.

"As deflation pressures key categories and increased competition impacts premium dog food, it's hard to find silver linings," Wells Fargo analyst John Baumgartner said.

The company now expects fiscal 2020 net sales of flat to a 1% drop. It had previously estimated sales to rise 1% to 2%.

For the year, Smucker forecast adjusted earnings of $8.35 per share to $8.55 per share, lower than its previous estimate of $8.45 to $8.65.

Net sales fell 6.5% to $1.78 billion in the quarter, below expectations of $1.87 billion, according to IBES data from Refinitiv.

Excluding items, it earned $1.58 per share, missing estimates of $1.74.

However, net income rose 16.2% to $154.6 million from a year earlier.

(Reporting by Nivedita Balu in Bengaluru; Editing by Anil D'Silva)

By Nivedita Balu

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on THE JM SMUCKER COMPANY
04:38pJ M SMUCKER CO : Change in Directors or Principal Officers, Other Events, Financ..
AQ
04:26pTHE J. M. SMUCKER COMPANY : Announces Chief Financial Officer Succession Plan
PR
11/01THE J. M. SMUCKER COMPANY : Announces Webcast of Second Quarter Earnings Confere..
PR
10/25THE J. M. SMUCKER COMPANY : Declares Dividend
PR
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
More news
Financials (USD)
Sales 2020 7 713 M
EBIT 2020 1 456 M
Net income 2020 763 M
Debt 2020 5 222 M
Yield 2020 3,34%
P/E ratio 2020 15,6x
P/E ratio 2021 14,8x
EV / Sales2020 2,24x
EV / Sales2021 2,17x
Capitalization 12 064 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
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 15
Average target price 106,62  $
Last Close Price 105,78  $
Spread / Highest target 15,3%
Spread / Average Target 0,79%
Spread / Lowest Target -12,1%
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 COMPANY13.15%12 355
KERRY GROUP33.64%22 258
TREEHOUSE FOODS, INC.-2.09%3 101
CHONGQING FULING ZHACAI GROUP CO LTD--.--%2 754
BONDUELLE-11.80%852
HAOXIANGNI HEALTH FOOD CO LTD--.--%627