US spreads-to-coffee group JM Smucker has lowered its full-year earnings and sales outlook, despite booking an increase in first-quarter profits.
In the three months to the end of July, Smucker’s first quarter, earnings totalled US$126.6m, a 14% increase on the prior year period, boosted by lower coffee and peanut costs. Operating profit was up 12% to $213.3m.
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Sales, however, dropped 1% to $1.35bn, primarily due price cuts taken over the past twelve months. Volumes, however, were up 1% driven by increases of 4% in both the US retail coffee and US retail consumer foods segments.
Smucker said it now expects sales for the full year to drop by around 1% from a previous estimate of flat revenues. EPS, however, is expected to be in the range of $5.72 to $5.82 from a previous range of $5.65 to $5.75.
Alongside the results, Smucker announced the acquisition of US organic and gluten-free firm Enray.
Click here to view the full earnings release.
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