US: Smucker sales rise on pricing
- Smucker Q4 sales up 14%, volumes down 7%
- Q4 earnings up 10%
- FY earnings hit by acquisitions, down 4%
JM Smucker said today (7 June) it had been able to grow earnings and sales in the fourth quarter of its financial year as higher prices offset weaker volumes.
During its fourth quarter, which ran until 30 April, the US food group said sales increased 14% to US$1.36bn. However, sales volumes were down 7% in the three-month period as consumption dropped in the face of higher prices and weak consumer sentiment.
During the period, the company booked a 10% increase in net earnings, which rose to $104.1m, or 93 cents a share, up from $94.9m, or 82 cents, a year earlier. Excluding one-off items such as restructuring, merger and integration costs, EPS rose to $1.10 from $1 per share.
"We are pleased to have delivered another year of record sales and year-over-year earnings per share growth in a complex macroeconomic environment," said CEO Richard Smucker.
For the full year, Smucker said net sales rose 15% to $5.53bn. However, net income dropped 4% to $459.7m due to acquisition expenses, including its recent takeover of Sara Lee's North American coffee unit.
"As we look ahead, we will continue to invest in our portfolio of trusted brands, build upon our recent acquisitions, advance our extensive pipeline of innovation, further our supply chain productivity initiatives, and build upon the foundation being laid in China. We are well-positioned for continued growth."
The company said it expects 2013 earnings of $5-5.10 a share on 7% sales growth.
Click here for the full release, or check back for our detailed coverage from the group's results conference call.
US baker Flowers Foods has reported a slight lift in third-quarter earnings, which were boosted by "solid" sales gains....
- How brands are eyeing their own retail presence
- Why Lactalis could move for Dairy Crest
- Who could swoop for Diamond Foods?
- The consistent inconsistency of European promos
- Indonesia – How ice cream makers can drive volumes
- Nestle, R&R Ice Cream in joint venture talks
- How the food industry is reacting to TPP
- Mondelez 'preparing to sell European cheese unit'
- China implements new safety regulations
- Unilever acquires Italian gelato group Grom
- Management briefing: just-food’s industry outlook for 2015
- Global Savory Snacks Market: Merger and Acquisitions August 2015
- Danone SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis
- E-Grocery Market in India - Market Research 2015-2019
- Food and Beverage Coding and Marking Equipment: Market Outlook 2015-2019