US food group J.M. Smucker has cut its full-year profit and sales outlook, blaming weakness in its pet foods business.
Reporting its Q2 results today (22 November), the Ohio-based business said it expects full-year net sales to fall 3%, versus its previous guidance of a decline of 1% to flat.
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And it expects adjusted EPS to be between US$8.10 and $8.30 per share, compared with its prior forecast range of $8.35 to $8.55.
Net sales decreased 3% to $1.96bn in the three months to 31 October on a year-on-year basis, while operating income was flat at $330.5m. Net income was up 12% at $211.2m.
In the jam and peanut butter maker’s US retail consumer food segment, sales fell by $35.8m, which it said reflected $32m of non-comparable net sales in the prior year related to 2018’s divestiture of its US baking business.
It said favourable volume/mix contributed two percentage points, primarily driven by the Smucker’s Uncrustables and Jif brands, partially offset by the Crisco brand.
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By GlobalDataCEO Mark Smucker said: “While our second-quarter sales performance did not meet our expectations, we delivered EPS growth ahead of our projection, reflecting our commitment to maintain financial discipline and strengthen our bottom line.
“Despite continuing softness for our premium dog food offerings, we were pleased with the performance for the balance of our portfolio.”
He added: “Looking ahead, the actions we are taking across the company, including the recently announced leadership changes, position us well for future long-term growth and shareholder value creation.”
