Packaged food maker J.M. Smucker forecasts annual profit below estimates

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(Reuters) -Jif peanut butter maker J.M. Smucker forecast annual profit below estimates on Tuesday, as tariff uncertainty and consecutive price hikes squeeze demand for its dog snacks and sweet baked goods.

Shares of Orrville, Ohio-based company were down about 8% in premarket trading.

Packaged food makers, including J.M. Smucker, Kraft Heinz and Campbell’s Co, have been raising product prices to counter higher costs from commodities, such as green coffee, which have hurt their sales.

J.M. Smucker is also among the firms that have been facing the brunt of the Trump administration’s ever-shifting tariff policy, which has disrupted businesses and rattled shoppers worldwide.

“The current U.S. tariff impact on green coffee is our largest exposure that we will manage on top of navigating record-high costs for the commodity,” said CEO Mark Smucker in a statement.

The company said it purchases about 500 million pounds of green coffee annually, the majority of which is imported from countries such as Brazil and Vietnam, Smucker added.

The company expects annual earnings per share in the range of $8.50-$9.50, compared with analysts’ estimates of $10.26, according to data compiled by LSEG.

Uncrustables sandwich maker said its fiscal 2026 forecast accounts for the impact of tariffs, changes in consumer behavior as well as ongoing input inflation.

For the fourth quarter, the company posted net sales of $2.14 billion, compared with the estimate of $2.19 billion.

The company’s net sales in the quarter were hurt by declines in its pet foods, baked snacks as well as frozen handheld and spreads businesses in the United States.

Net sales in its pet foods segment, which accounts for about 19% of its total revenue, decreased 12.6%, while the frozen foods segment dipped 0.2%, compared to a year ago.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Vijay Kishore)