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J.M. Smucker Raises Profit Forecast On Upbeat Demand

Published on Aug 25 2020 1:29 PM in A-Brands tagged: Coffee / Quarterly Reports / J.M. Smucker / Jif peanut butter / frozen sandwiches / fruit spreads

J.M. Smucker Raises Profit Forecast On Upbeat Demand

J.M. Smucker Co on Tuesday raised its forecast for fiscal 2021 adjusted profit, after the Jif peanut butter maker topped estimates for first-quarter sales on strong demand for its coffee, frozen sandwiches and fruit spreads.

Shares of the Uncrustables frozen sandwiches maker rose 3% in premarket trade, with a surge in demand for packaged foods as work-from-home policies and the closure of schools have led to consumers keeping the preference they picked up during the lockdown: eating at home to dining out.

Sales in its US retail consumer foods segment climbed 22%, while US retail coffee business rose 23% in the quarter.

Outlook

Orrville, Ohio-based Smucker forecast fiscal 2021 adjusted earnings to be between $8.20 and $8.60 per share, and net sales to be flat or grow up to 1%.

The Folgers coffee maker had previously projected net sales to decline 1%-2% and adjusted profit per share of $7.90 to $8.30 in fiscal 2021.

Excluding items, Smucker earned $2.37 per share, compared with Wall Street expectations of $1.67 per share, according to IBES data from Refinitiv.

Net sales rose to $1.97 billion (€1.67 billion) from $1.78 billion (€1.51 billion) in the first quarter ended 31 July. Analysts on average had expected the food processor to post net sales of $1.81 billion (€1.53), according to IBES data from Refinitiv.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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