J.M. Smucker Quarterly Sales Beat Estimates
Packaged food maker J.M. Smucker Co on Tuesday reported quarterly sales that beat Wall Street estimates, driven by higher demand for its Dunkin' Donuts-branded coffees and premium pet foods such as Nutrish.
The largest US coffee roaster's shares rose about 4% to $104.9 before the opening bell.
Smucker has been doubling down on pet food and coffee, while offloading non-core businesses such as its US baking unit, which houses brands such as Pillsbury.
The company bought Ainsworth Pet Nutrition for $1.9 billion in April 2018, adding premium brands such as Nutrish to its pet food portfolio.
Biggest Revenue Generator
Sales in Smucker's US retail pet foods business, the company's biggest revenue generator, rose 35% in the third quarter to $759 million (€667.93 million).
The US retail coffee business, which houses Folgers and Dunkin' Donuts-branded coffee, increased 2% to $561.6 million (€494.22 million).
The company's net income fell to $121.4 million, or $1.07 per share, in the quarter ended 31 January from $831.3 million, or $7.32 per share, a year earlier, as it recorded a impairment charge related to its pet foods segment.
Excluding items, the company earned $2.26 per share.
Net sales rose 5.7% to $2.01 billion(€1.77 billion).
Analysts on average had expected a profit of $2.01 per share on sales of $1.99 billion, according to IBES data from Refinitiv.