Smucker Reports Bad 4th Quarter, Mixed Full-Year Results, $1.2 B Loss for the Year
J.M. Smucker Co. on June 10 reported disappointing fourth-quarter and mixed-bag full-fiscal-year results. The company recorded a loss of $729 million in the final quarter, ending April 30, and $1,231 million in red ink for FY2025.
Most of the blame all year has been placed on its underperforming Sweet Baked Snacks business, essentially Hostess, acquired in late 2023 for $5.6 billion. Smucker took $1 billion in impairment charges in its fiscal third quarter to write down the value of that deal. The charges created a $594 million loss for the quarter ending Jan. 31.
Company executives lowered their guidance for FY2026 sales to an increase of 2-4%, which apparently didn’t sit well with investors, as its stock price on June 10 closed at $95.87, its lowest close since the last day of 2018.
Company-wide, sales were down 3% in the fourth quarter but up 7% for the year, to $8.726 billion (although net sales excluding acquisitions, divestitures and foreign currency exchange was flat). U.S. Retail Coffee performed decently, with sales up $102 million, much of that from higher pricing. Frozen handhelds & spreads grew by $62 million (but less than hoped) and International & Away From Home inched up $1.5 million.
Acquisitions and divestitures had an impact. The full integration of Hostess helped nearly double sales of Sweet Baked Snacks, offset by divestitures that included some smaller brands to JTM Foods early this year and the Voortman cookie business to Second Nature Brands at the end of last year. Also sold were a Canadian condiment business and Sahale Snacks. business. Pet foods sales were off $159 million.
