US spreads-to-coffee group JM Smucker has booked an increase in full-year earnings, boosted by price cuts in its coffee division.
In the year to the end of April, earnings were up 18% to US$544.2m, the company reported today (6 June). The increase reflected price cuts of its Folgers flagship coffee brand and other packaged coffee products in the period.
Operating profit climbed 17% to $910.4m, while net sales were up 6% to $5.86bn.
CEO Richard Smucker, said: “The record results we reported were achieved while also making significant investments toward our future growth and creating value for shareholders. Our long-term focus, strong consumer-relevant brands, robust innovation, and dedicated employees are keys to this success.”
The company guided fiscal year 2014 adjusted EPS in a range of $5.65 to $5.75. Smucker also expects net sales to remain flat in 2014 due to the impact of price declines that it began implementing this year.
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