US food group JM Smucker reported bumper fourth-quarter results today (18 June) on the back of last year’s acquisition of the coffee business Folgers.
Smucker, which also owns the Jif, Crisco and Hungry Jack brands, posted fourth-quarter net income that more than doubled and an 81% leap in net sales.
Net income reached US$94.3m in the three months to 30 April – compared to US$37.1m a year earlier. Net sales climbed to US$1.07bn.
The acquisition of Folgers from Procter & Gamble last November boosted the numbers and led to a 56% jump in annual net income to US$266m – and a 49% rise in sales to US$3.76bn.
However, Smucker said fourth-quarter net sales rose 3% when the company stripped out the impact of acquisitions and foreign exchange on the numbers. Underlying annual net sales climbed 9%.
“Our core business continues to produce solid results and the recently added coffee business’s performance has exceeded our expectations,” said chairman and co-CEO Tim Smucker.
Looking to the next 12 months, the company said a full year’s contribution from Folgers would add US$800-850m to its net sales.
The group forecast a 20% rise in annual net sales to around US$4.5bn. Income per diluted share, excluding merger and integration costs of US$0.17-0.19 per diluted share, is expected to range between US$3.65 and US$3.80.