Shares in US food group JM Smucker have declined after it slashed its full-year sales and profit forecasts on the back of weakness in its coffee division.
In a preliminary second-quarter report, ahead of its full financial statements on 19 November, Smucker said sales are expected to decline 5% from the same period a year ago.
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It lowered earnings expectations to US$1.53 per share for the quarter, below the FactSet consensus analyst estimate of US$1.66.
For the full year, sales are expected to decrease to 1% compared to a previous forecast of growth of 3-4%. Earnings guidance was lowered to US$5.45-US$5.65 per share compared with an earlier expectation of US$5.95-US$6.05.
“Our second quarter fell short of expectations primarily driven by our coffee business,” said CEO Richard Smucker.
“The balance of our businesses performed well,” he added.
Shares in Smucker fell 3.69% to US$100.32 today (12 November) at 16:04 GMT.
