Smucker’s profit tops estimates as Hostess acquisition sweetens its business


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The J.M. Smucker Co. on Tuesday reported stronger-than-expected adjusted third-quarter profit, as it integrated its acquisition of Hostess Brands and total sales rose 1%.

J.M. Smucker Co.
said its net income dropped to $120.4 million, or $1.14 a share, for its fiscal third quarter through Jan. 31, down from $208.5 million, or $1.96 a share, in the year-earlier period.

The parent of brands such as Folgers coffee, Dunkin’, Hostess and Milk-Bone pet food said adjusted per-share earnings came to $2.48, above the $2.27 FactSet consensus.

Sales rose 1% to $2.229 billion from $2.216 billion a year ago, just above the $2.220 billion FactSet consensus.

The results reflect the divestiture of the company’s Canada condiment business on Jan. 2 of this year, the acquisition of Hostess Brands Inc. on Nov. 7, the sale of the Sahale Snacks business on Nov. 1 and sales of certain pet food brands on April 28.

“Our teams are prioritizing growth opportunities for our leading brands, integrating Hostess Brands, and increasing focus on productivity and synergy-related activities,” CEO Mark Smucker said in a statement.

The company tweaked its fiscal 2024 guidance, lowering its same-store sales guidance and raising the low end of its adjusted EPS guidance.

It now expects same-store sales to rise 8.75%, compared with prior guidance of 8.5% to 9.0%.

It expects adjusted EPS of $9.45 to $9.65, compared with prior guidance of $9.25 to $9.65.

The stock was down 0.4% premarket and has fallen 15.4% in the last 12 months, while the S&P 500
has gained 27%.

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Alexandra Williams
Alexandra Williams
Alexandra Williams is a writer and editor. Angeles. She writes about politics, art, and culture for LinkDaddy News.

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