J.M. Smucker Co. reported good third-quarter financials on Feb. 27, recording not only a sales increase but the elusive volume increase.
Overall, net sales increased just 1%, to $2.229 billion, but that was hampered by a number of divestitures and slightly inflated by an acquisition. Excluding the acquisition, divestitures and foreign currency exchange, sales increased 6% over the third quarter of FY 2023 (Smucker’s fiscal year ends April 30).
Operating income was $297 million, down 6% from the previous third quarter.
Mark Smucker, chairman and president/CEO, lauded “volume growth across our business." The financial news release noted, “The increase in comparable net sales reflects a 4 percentage point increase from volume/mix, primarily driven by Meow Mix cat food, contract manufacturing sales related to the divested pet food brands and the Café Bustelo brand.”
That third quarter—from Nov. 1, 2023 till Jan. 31, 2024—was a busy one for portfolio shuffling. Hostess Brands was acquired last Nov. 7, 2023, and Sahale Snacks and a Canadian condiment business were divested.
