US food group JM Smucker has lowered its forecasts for annual sales and earnings after a third quarter in which revenues fell.
The cuts hit Smucker’s shares, which were down more than 5% in trading in New York today (14 February).
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The company believes net sales for its current financial year will fall 5% on the previous 12 months.
The Jif peanut butter maker also lowered its non-GAAP income per diluted share estimate to a range of $5.55 to $5.60, excluding special project costs of approximately $0.20 per diluted share. The previous estimate was a range of $5.72 to $5.82.
Smucker pointed to its third-quarter results, including an unplanned trade spending accrual adjustment and lower volume expectations for its fourth quarter. The group said it was facing “a more competitive pricing environment in key categories”.
Net sales fell 6% to $1.47bn in Smucker’s third quarter, which ran until 31 January. Smucker pointed to a 6% fall in prices after it lower prices, notably on coffee and peanut butter.
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By GlobalDataOperating income was up 2% at $263.5m. Net income grew 8% to $166.7m.
CEO Richard Smucker said: “We continue to navigate through a challenging operating environment. This journey is supported by our leading market position with strong and healthy brands. Our innovation pipeline is extensive and our new products are winning with customers.”
Shares in Smucker were down 5.48% at $89.93 at 12:15 ET.
