J.M. Smucker has a positive second quarter overall, with rising sales at higher prices offsetting additional costs for ingredients.
Sales rose from $2.03 billion in the second quarter of last year to $2.05 billion this year. However, once the effect of recent divestitures is removed, sales were up 8% year-over-year.
Bright spots included pet food, which grew 7% in sales, adjusted for divestiture; retail coffee, which grew 8%, led by its Dunkin’ and Café Bustelo brands; and consumer foods, including Smucker’s jellies, Jif peanut butter and Uncrustables frozen sandwiches, up 9%.
Profit margin was down, from 40.2% last year to 34.7% this year. Company executives attributed this to higher prices for ingredients, caused by supply chain disruptions and weather events. The company had announced in August that it would be raising prices for coffee and other products.
"Our second quarter results, including comparable net sales growth of 8%, exceeded our expectations and demonstrated sustained momentum for our business and strong execution by our talented employees in what remains a dynamic operating environment," CEO Mark Smucker said in a statement.
