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Jun 12, 2023

J.M. Smucker Co. Reports Pet Foods Sales Up 9 Percent in Q4

The J.M. Smucker Co.’s U.S. retail pet food net sales improved 9 percent in the

The J.M. Smucker Co.'s U.S. retail pet food net sales improved 9 percent in the fourth quarter of its fiscal year ending April 30 to $67.2 million, company officials reported.

Financial results for the fourth quarter and fiscal year reflect the divestitures of the Rachael Ray Nutrish, 9Lives, Kibbles 'n Bits, Nature's Recipe and Gravy Train pet food brands on April 28, the natural beverage and grains businesses on Jan. 31, 2022 and the private label dry pet food business on Dec. 1, 2021, officials said.

"Our strong fourth quarter and full-year results demonstrate the execution of our strategy and consumer demand for our brands," said Mark Smucker, Chair of the Board, president and CEO. "During the quarter, we made meaningful progress in our effort to reshape our portfolio with the completion of the divestiture of certain pet food brands, while also returning significant cash to our shareholders."

Excluding $12.0 million of noncomparable net sales in the prior year related to the divestiture of the pet food brands, the company's U.S. pet food net sales increased $79.2 million, or 11 percent. Higher net price realization increased net sales by 12 percentage points, primarily reflecting list price increases across the portfolio. A reduced contribution from volume/mix decreased net sales by 1 percentage point, primarily driven by cat food and partially offset by dog food and dog snacks.

Segment profit increased $24.8 million, primarily reflecting favorable volume/mix, a favorable net impact of higher net price realization and increased commodity and ingredient, packaging and manufacturing costs, and a one-time benefit associated with a legal matter from a prior acquisition, partially offset by increased marketing investments.

"Looking ahead to fiscal year 2024, we are focusing on sustaining our business momentum by investing in growth platforms, such as Uncrustables sandwiches and Milk-Bone dog treats, and supporting our talented employees whose hard work and dedication have been instrumental to our success," Smucker said. "We are confident in our long-term strategy of leading in the attractive categories of pet, coffee, and snacking and delivering shareholder value."

J.M. Smucker Co.'s overall net sales were $2.2 billion, an increase of 10 percent. Net sales excluding the impact of divestitures and foreign currency exchange increased 11 percent.

For the fiscal year, net sales were $8.5 billion, an increase of 7 percent. Net sales excluding the impact of divestitures and foreign currency exchange increased 9 percent.

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