Coffee Service

JM Smucker lifts Q2 2023 sales, upgrades 2023 expectations

Logo provided.

November 22, 2022

The J.M. Smucker Co., which owns Folgers, Dunkin' and other consumer brands, lifted its Q2 2023 sales and upgraded its 2023 forecasts, according to an earnings report. Highlights include:

• Net sales increased 8%, from $2.05 billion in Q2 2022 to $2.2 billion in the quarter ending Oct. 31, 2022. Net sales excluding divestitures and foreign currency exchange increased 11%.
• Net income fell 7%, from $206 million to $191.1 million in the comparable quarters.
• Net income per diluted share fell 6%, from $1.90 to $1.79.
• Adjusted earnings per share fell 1%, from $2.43 to $2.40.
• The increase in comparable net sales was primarily driven by a 17 percentage point increase from net price realization, primarily reflecting list price increases for each of the company's U.S. retail segments and for international and away-from-home, partially offset by a 6 percentage point decrease from volume/mix primarily driven by the U.S. retail coffee segment.
• U.S. retail coffee net sales increased 10% to $64.7 million. Net price realization increased net sales by 23 percentage points, primarily reflecting list price increases across the portfolio, partially offset by a reduced contribution from volume/mix of 13 percentage points driven by the Folgers and Dunkin' brands.
• U.S. retail consumer foods net sales decreased 2% to $9 million,
• International and away-from-home net sales increased 14% to $35.8 million.

Shares traded at $148.71 today against a 52-week range of $119.82-$152.16.

"Our second quarter results reflect the ongoing strength of our business, continued demand for our leading brands and the ability of our team to execute with excellence," Mark Smucker, chairman, president and CEO, said in the press release. "Given our strong performance and sustained business momentum, we are raising our net sales and adjusted earnings per share expectations for this fiscal year."

For 2023, the company lifted its expected sales increase range, from 4%-5% to 5.5%-6.5%, and raised its adjusted EPS range, from $8.20-$8.60 to $8.35-$8.75.