Latest news with #TuckerMarshall
Yahoo
2 days ago
- Business
- Yahoo
SJM Q1 Earnings Call: Guidance Cut as Key Categories Face Cost and Volume Pressures
Packaged foods company J.M Smucker (NYSE:SJM) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 2.8% year on year to $2.14 billion. Its non-GAAP profit of $2.31 per share was 2.8% above analysts' consensus estimates. Is now the time to buy SJM? Find out in our full research report (it's free). Revenue: $2.14 billion vs analyst estimates of $2.19 billion (2.8% year-on-year decline, 1.9% miss) Adjusted EPS: $2.31 vs analyst estimates of $2.25 (2.8% beat) Adjusted EBITDA: $492.2 million vs analyst estimates of $484.5 million (23% margin, 1.6% beat) Adjusted EPS guidance for the upcoming financial year 2026 is $9 at the midpoint, missing analyst estimates by 12.4% Operating Margin: -27.9%, down from 18.4% in the same quarter last year Organic Revenue fell 1% year on year (2.1% in the same quarter last year) Sales Volumes fell 3% year on year (1% in the same quarter last year) Market Capitalization: $10.05 billion J. M. Smucker's first quarter was shaped by divergent trends across its core categories. CEO Mark Smucker cited continued strong demand for brands like Uncrustables and Café Bustelo, supported by new product launches and increased marketing, as key contributors to growth in select segments. However, management acknowledged that discretionary spending pressures and retailer inventory adjustments weighed heavily on the Sweet Baked Snacks and Pet Foods businesses. The company also reported that volume declines in dog snacks and fruit spreads offset gains elsewhere, with CFO Tucker Marshall highlighting that cost inflation—especially for green coffee—necessitated further pricing actions. Notably, management was candid about underperformance in the Hostess-branded snacks segment, which prompted a strategy shift and leadership change within that business unit. Looking ahead, management expects continued headwinds from elevated commodity costs, tariffs, and evolving consumer behaviors. Mark Smucker emphasized the company's intent to recover rising input costs through additional price increases, especially in coffee, while investing in marketing for key brands such as Café Bustelo and Uncrustables. The outlook for the Sweet Baked Snacks segment remains cautious, with plans to stabilize Hostess brand performance through portfolio simplification and operational changes. 'We are being cautious in our fiscal year 2026 guidance,' CFO Tucker Marshall explained, noting that assumptions include demand elasticity, increased marketing spend, and the ongoing impact of tariffs. The company believes its transformation initiatives and cost savings will partly offset these challenges, but acknowledges that the external environment remains dynamic. Management attributed the quarter's results to robust innovation in core brands, cost inflation in coffee, and underperformance in Sweet Baked Snacks, leading to a revised segment strategy. Uncrustables and Café Bustelo momentum: The Uncrustables brand achieved its eleventh consecutive year of double-digit growth, driven by national advertising, new product launches, and expanded distribution. Café Bustelo also delivered significant sales gains and increased market share, with management citing strong acceptance of new roast profiles and expanded marketing. Sweet Baked Snacks reorganization: Hostess and the Sweet Baked Snacks segment underperformed due to soft consumer demand and operational missteps. Management installed a new segment leader, narrowed priorities to three focus areas (portfolio, execution, and growth), and announced the planned closure of the Indianapolis bakery to streamline costs and improve margins. Pet Foods mixed results: Milk-Bone saw continued innovation—such as dog treats made with Jif peanut butter—while Meow Mix benefited from modernized packaging and new product launches. However, overall segment sales declined, impacted by retailer inventory reductions and broader consumer caution in discretionary pet spending. Coffee price increases and elasticity: Facing record-high green coffee costs, Smucker implemented multiple price hikes in its coffee portfolio. Management reported that initial demand elasticity was better than expected but acknowledged that further price increases could affect volumes. Transformation Office and cost savings: The company's Transformation Office delivered above-target synergies from the Hostess acquisition and supported margin expansion in key segments through productivity improvements and portfolio optimization. Management expects near-term performance to be shaped by commodity cost inflation, price elasticity, and the stabilization of underperforming segments. Commodity costs and tariffs: Ongoing inflation in green coffee and the impact of U.S. tariffs are expected to weigh on margins, particularly in the coffee segment. The company plans additional price increases to recover these costs, though management acknowledges the risk of volume declines from higher prices. Brand investment and marketing: Smucker is increasing marketing investment behind priority brands, especially Café Bustelo and Uncrustables. Management believes these investments will drive household penetration and long-term growth, but near-term profit margins may be pressured as a result. Sweet Baked Snacks recovery: The revised strategy for Hostess and Sweet Baked Snacks centers on portfolio simplification, cost reduction, and targeted innovation. Management expects these actions to stabilize the segment over time, but flags ongoing consumer caution and market headwinds as risks to recovery. Our analysts will be closely watching (1) whether price increases in coffee and Uncrustables lead to further volume declines or are absorbed by consumers, (2) signs of stabilization and improved execution in the Sweet Baked Snacks segment following strategic changes, and (3) continued momentum and share gains for priority brands like Café Bustelo and Meow Mix. Execution on cost savings and synergy capture from recent acquisitions will also be key to monitoring progress. J. M. Smucker currently trades at a forward P/E ratio of 9.2×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Axios
3 days ago
- Business
- Axios
Coffee tariffs hit hard for Dunkin' seller J.M. Smucker Co.
President Trump's tariffs are roasting coffee sellers. Why it matters: American companies have few domestic options for raw, unroasted coffee beans — known as green coffee — so they can't do much to limit their exposure to import duties. Driving the news: The J.M. Smucker Co. — which sells Folgers, Dunkin' and Cafe Bustelo coffee brands — is citing coffee as its No. 1 raw material cost. Trump's 10% baseline tariffs on nearly all imported goods includes coffee beans. And coffee prices were up 9.6% in April, according to the Consumer Price Index, which reports May prices on Wednesday. The extra duties lowered Smucker's profits and will lead to further price increases, the company said Tuesday. "We are taking pricing across the entire coffee portfolio," Smucker CFO Tucker Marshall said on an earnings call. "Those actions not only cover green coffee commodity inflation, but also support recovering tariffs associated with our green coffee." Zoom out: At Starbucks, the increased duties are causing the world's largest coffee chain to "look at how the tariffs will impact the cost and then the price that we need to provide to the customer," CEO Brian Niccol told Axios on Tuesday in an interview in Las Vegas, though he added that "we have no plans right now to pass on pricing." "Fortunately for us, we have a very diverse way of buying, and then we roast everything in the United States," Niccol said. "So it's really just the green coffee that we're dealing with, which has got that 10% tariff. Reality check: Coffee tariffs are just one of Smucker's problems: The company's Hostess acquisition isn't yielding much fruit. Smucker's sales of sweet baked snacks plunged 14% when excluding divestitures. "We believe that the disappointing outlook, particularly the weakness in Hostess's performance, raises even more concern about the acquisition's integration and the need for additional investment to revive growth," CFRA Research analyst Arun Sundaram said in a research note.
Business Journals
3 days ago
- Business
- Business Journals
Tariffs and green coffee costs drive Smucker's quarterly loss
Story Highlights J.M. Smucker Co. reported $729 million fourth-quarter loss largely due to tariffs. Smucker's shares fell 15% following the earnings report. Company plans 20% price increase on coffee brands by 2026. J.M. Smucker Co. shares slid Tuesday after the Orrville, Ohio-based food maker reported a fiscal fourth-quarter loss largely because of tariffs and higher prices for buying green coffee, which is not produced in the United States. Shares of Smucker (NYSE: SJM) fell more than 15% to $94.41 in regular trading on Tuesday at more than 10 times the shares' average daily trading volume. GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events Smucker reported a net loss of $729 million, or $6.85 a diluted share, in the fiscal fourth quarter, ended April 30, compared with the same period in 2024. The company's net sales fell 3% to $2.1 billion over the same period. Smucker's tariff exposure is multifaceted Smucker's tariff exposure is complicated, Tucker Marshall, Smucker's CFO, told securities analysts during a Tuesday conference call. First, the main ingredients in Smucker's food items — what the company calls "direct materials" — are exposed to tariffs. "The primary driver there is green coffee, which we view as an unavailable natural resource in the United States, so we procure [it] from Brazil and Vietnam, among others," Marshall said Tuesday. Second, retaliatory tariffs are pressuring sales of Smucker's goods — particularly peanut butter, ice cream toppings and coffee — that are sold in Canada, he said. Third, Smucker is paying tariff-hiked prices for its co-manufactured foods produced outside the United States, namely liquid coffee and wet cat food, Marshall said. "The greatest [tariff] exposure that we have in the portfolio is across those first three areas, but the leading driver is green coffee," he said. As a result, Smucker plans to raise the prices of its Folgers, Dunkin' and Café Bustelo coffees by 20% during the full fiscal 2026 year, which would end in April 2026, Marshall said. More than coffee prices created Smucker's quarterly loss On top of those pressures, Smucker is paying tariff-boosted prices for capital goods — equipment, machinery and the like — that it buys primarily from the European Union and uses in its manufacturing plants, Marshall said. Even without the effects of tariffs and green coffee inflation, Smucker likely would have reported a fourth-quarter loss. The company took $980 million in non-cash charges to write off goodwill related to the acquisition of Hostess and other companies in its Sweet Baked Snacks reporting unit. The financial challenges — some out of Smucker's control — clouded what CEO Mark Smucker called "a year of significant progress as we delivered positive results in a challenging environment." Smucker reported a net loss of $1.2 billion, or $11.57 a diluted share, in fiscal 2025, ended April 30. Net sales grew 7% to $8.7 billion in that period. "Our performance reflects top-line growth supported by strong consumer demand for our portfolio of leading brands, and bottom-line growth driven by disciplined cost management and execution," CEO Smucker said in a statement. In addition, the Orrville company "reignited innovation that is resonating with our consumers" in the just-ended year, "resulting in one of our most successful years of innovation in recent history," Smucker said. "We launched Jif Peanut Butter and Chocolate Flavored Spread, new varieties of Uncrustables sandwiches, Café Bustelo multi-serve coffee and Milk-Bone Peanut Buttery Bites, just to name a few, all of which are exceeding expectations," he said. Sign up for the Business Journal's free daily newsletter to receive the latest business news impacting Cleveland.
Yahoo
05-03-2025
- Business
- Yahoo
The J.M. Smucker Co. to Participate in the BofA Securities 2025 Consumer and Retail Conference
ORRVILLE, Ohio, March 5, 2025 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) today announced that Mark Smucker, Chair of the Board, President and Chief Executive Officer, and Tucker Marshall, Chief Financial Officer, will participate in a fireside chat at the BofA Securities 2025 Consumer and Retail Conference on Tuesday, March 11, 2025, at 8:00 a.m. Eastern Time. A listen-only live webcast of the fireside chat can be accessed on the Company's website: A replay of the webcast will be available following the event. About The J.M. Smucker Co. At The J.M. Smucker Co., it is our privilege to make food people and pets love by offering a diverse family of brands available across North America. We are proud to lead in the coffee, peanut butter, fruit spreads, frozen handheld, sweet baked goods, dog snacks, and cat food categories by offering brands consumers trust for themselves and their families each day, including Folgers®, Dunkin'®, Café Bustelo®, Jif®, Uncrustables®, Smucker's®, Hostess®, Milk-Bone®, and Meow Mix®. Through our unwavering commitment to producing quality products, operating responsibly and ethically and delivering on our Purpose, we will continue to grow our business while making a positive impact on society. For more information, please visit The J.M. Smucker Co. is the owner of all trademarks referenced herein, except for Dunkin'®, which is a trademark of DD IP Holder LLC. The Dunkin'® brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels, such as grocery stores, mass merchandisers, club stores, e-commerce and drug stores, and in certain away from home channels. This information does not pertain to products for sale in Dunkin'® restaurants. View original content to download multimedia: SOURCE The J.M. Smucker Co. Sign in to access your portfolio
