Battered by weather events that affected coffee and other supplies, J.M. Smucker Co. had a rough time of it in the first quarter of its 2022 fiscal year.
Net income plunged 35%, to $153.9 million from the same quarter last year, on sales of $1.86 billion, down 6%. The company downgraded its forecast for 2022 to reflect a 2% sales decline, with earnings per share projected at $8.25 to $8.65, down from $8.70 to $9.10.
Management cited bad weather and poor coffee crops in South America as a cause of decline in Smucker’s coffee sector, which includes Folgers. Profits were down 17% on a sales decline of 5%. Bad weather also affected operations in Texas, where a cold spell interrupted packaging supplies. In addition, the sales of the Crisco fats and Natural Balance pet food businesses negatively affected earnings.
Bright spots were increases in the sales of two key brands: Jif peanut butter, up 9% and Uncrustables frozen sandwiches, with sales of more than $120 million in the quarter.
