Folgers coffee maker J.M. Smucker on Wednesday forecast a smaller-than-expected decline in annual sales, benefitting from steady demand for its ready-to-eat meals and coffee.
Shares of the company rose about 4 per cent premarket, after J.M. Smucker raised its annual profit forecast on the back of tariff-related refunds.
Here are some details:
- Budget-conscious consumers, pressured by still-high inflation, are increasingly opting to eat at home rather than dining out, lifting demand for essential goods such as coffee and jams.
- Easing coffee prices, which surged due to higher green coffee costs and tariffs in recent years, pushed J.M. Smucker to lower prices.
- The company’s quarterly gross profit increased to US$504.9 million, which included tariff refunds of US$115.0 million.
- The company forecast annual net sales to decrease by 1 per cent to 2 per cent, compared with its prior forecast of a 3 per cent to 4 per cent decline.
- It expects full-year adjusted earnings to be between US$10.50 and US$11 per share, compared with its prior expectation of US$9.75 to US$10.25.
- The Jif peanut butter maker’s net sales for the quarter ended July 31 stood at US$2.22 billion, beating analysts’ average estimate of US$2.13 billion, according to data compiled by LSEG.
- Excluding tariff refunds, it earned US$3.24 per share on an adjusted basis during the first quarter, surpassing estimates of US$2.22.
(Reporting by Koyena Das in Bengaluru; Editing by Shreya Biswas)
