US food group JM Smucker has cut its forecast for annual sales after a drop in revenue in the second quarter.

Smucker, which owns brands including Jif peanut butter and Folgers coffee, managed to grow profits in the three months after to the end of October due to lower costs.

However, the company saw net sales drop 4% to US$1.56bn. Smucker has cut prices on products, notably on coffee and peanut butter, but the moves did not serve to boost its top line.

Smucker now sees its annual net sales falling 2% year-on-year, compared to an earlier forecast of a 1% drop.

The company kept its forecast for income per diluted share to be $5.72 to $5.82. Income per diluted share was up 5% in Smucker’s second quarter. Net income grew 3% to $153.4m. Operating income was up 1% at $250.8m.

Shares in Smucker were down 6.54% at $101.49.

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