The J.M. Smucker Co. on Tuesday reported stronger-than-expected adjusted third-quarter profit, as it integrated its acquisition of Hostess Brands and total sales rose 1%.
J.M. Smucker Co.
SJM,
said its net income dropped to $120.4 million, or $1.14 a share, for its fiscal third quarter through Jan. 31, down from $208.5 million, or $1.96 a share, in the year-earlier period.
The parent of brands such as Folgers coffee, Dunkin’, Hostess and Milk-Bone pet food said adjusted per-share earnings came to $2.48, above the $2.27 FactSet consensus.
Sales rose 1% to $2.229 billion from $2.216 billion a year ago, just above the $2.220 billion FactSet consensus.
The results reflect the divestiture of the company’s Canada condiment business on Jan. 2 of this year, the acquisition of Hostess Brands Inc. on Nov. 7, the sale of the Sahale Snacks business on Nov. 1 and sales of certain pet food brands on April 28.
“Our teams are prioritizing growth opportunities for our leading brands, integrating Hostess Brands, and increasing focus on productivity and synergy-related activities,” CEO Mark Smucker said in a statement.
The company tweaked its fiscal 2024 guidance, lowering its same-store sales guidance and raising the low end of its adjusted EPS guidance.
It now expects same-store sales to rise 8.75%, compared with prior guidance of 8.5% to 9.0%.
It expects adjusted EPS of $9.45 to $9.65, compared with prior guidance of $9.25 to $9.65.
The stock was down 0.4% premarket and has fallen 15.4% in the last 12 months, while the S&P 500
SPX,
has gained 27%.
