JM Smucker, the US jam-to-coffee group, successfully slowed the pace of the top line decline it had during its financial year in the fourth quarter and predicted a return to modest growth for next year.
In an update today (8 June), Smucker said sales were down 1% in the three months to 30 April to US$1.78bn. This brought the company’s full-year sales decline to 5%, with revenue dropping to $7.39bn in the 12-month period. Looking to 2018, Smucker said it expects total sales growth to rise to 1%.
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CEO Mark Smucker said: “In the new fiscal year, we continue to execute our strategic plan for sustainable, long-term growth by capitalising on changes in consumer preferences and the retail environment. We will fuel the momentum of our growth brands like Smucker’s, Uncrustables, Nature’s Recipe, and Café Bustelo, while supporting our base businesses in coffee, peanut butter, pet food, and pet snacks. Accelerated cost savings and expanded capabilities are key components of our multi-dimensional strategy to deliver top and bottom line growth and increase shareholder value.”
Full-year operating profit dropped 10% to $1.03bn and net earnings fell 14% to $592.3m. Earnings were hit by impairment charges and “special project costs”, Smucker noted. On an adjusted basis, the company said it grew full year EPS by 7%.
Last week, Smucker announced a deal to buy the Wesson cooking oil brand from US peer Conagra Brands for around $285m.
