JM Smucker has reported an increase in full-year earnings despite a drop sales at the group’s US consumer foods unit.
The US company today (9 June) revealed group-wide sales and earnings rose in the 12 months to 30 April. Revenue increased to US$7.8bn, versus $5.7bn in the year-ago period. Operating profit increased to $1.65bn from $1.13bn and net profit doubled to $668.7m as the company lapped one-time expenses in the prior year.
However, the performance of the group’s US consumer food unit was more lacklustre. Consumer food sales at the pet food-to-coffee group slipped to $2.27bn from $2.33bn, while operating profit remained relatively flat at $549.9m in the fiscal.
The performance of the consumer food unit, which produces brands including Jif and Pillsbury, was worse in the fourth quarter, reflecting the sale of Smucker’s US canned milk business to Eagle Family Foods Group in November. The company said segment revenue was down 2% in the quarter, falling to $473.7m, while segment profit dropped to 6% to $89m as the unit’s profit margin dipped 80 basis points.
Looking to the coming year, CEO Mark Smucker said the company expects to “continue our momentum” and expressed confidence of delivering “another year of strong earnings growth”.
For fiscal 2016/17, Smucker said it expects sales to fall 1% and provided an EPS range of $7.60 to $7.75.