Salem Radio Network News Wednesday, February 28, 2024

Business

Jif parent JM Smucker tops profit expectations on easing costs, higher prices

(Reuters) – J.M. Smucker, which owns Jif peanut butter and Dunkin’ pre-made coffee, beat second-quarter profit expectations on Tuesday, helped by higher product pricing and easing input costs.

Shares of the Ohio-based company, which have lost about 30% of their value so far this year, were up 3% in premarket trading.

Despite higher pricing, JM Smucker’s packaged jams and jellies found their way into shopping carts as consumers remained cautious about spending more on eating out.

The company, which owns Folgers Coffee, has seen its margins benefiting from cooling coffee bean prices and easing packaging and freight costs.

Softer raw material costs have also led to lower pricing in the coffee segment, with the company expecting competitive pricing to drive low-single-digit volume growth in the back half of the financial year.

JM Smucker’s quarterly gross profit margin rose to 37.4% from 31.8% a year ago.

On an adjusted basis, the company posted a profit of $2.59 per share in the quarter ended Oct. 31, topping LSEG estimates of $2.47 per share.

JM Smucker said it saw volumes grow across its brands such as Uncrustables frozen sandwiches, Meow Mix cat food and Café Bustelo coffee.

The company lowered its annual adjusted profit forecast range to between $9.25 and $9.65 per share, compared with its previous forecast of $9.45 to $9.85 per share, on the back of its acquisition of Hostess Brands in September.

JM Smucker agreed to buy Twinkies-maker Hostess Brands in a $5.6 billion deal, looking to expand its brand portfolio in the snacks and consumer packaged foods segments.

JM Smucker’s revenue in the quarter ended Oct. 31 was $1.94 billion compared with LSEG estimates of $1.95 billion.

(Reporting by Anuja Bharat Mistry and Juveria Tabassum in Bengaluru; Editing by Shilpi Majumdar and Tasim Zahid)

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