JM Smucker Co has raised full-year guidance after seeing net income in the latest quarter all but double, boosted by higher prices.
The Orrville, Ohio-based manufacturer of Jif peanut butter and Meow Mix cat food said in the financial first quarter ended July 31, net income rose to $183.6 million, up from $109.8 million the year before, with EPS of $1.79, up from $1.03 before. On an adjusted basis, Smucker earned $2.21 a share, up 32%, and compared to the FactSet consensus of $2.02 a share.
"Our first quarter results reflect a positive start to our fiscal year, including volume growth in every business segment," said Mark Smucker, chair, president, and chief executive officer.
Net sales edged lower to $1.81 billion from $1.87 billion, a touch below Street expectations of $1.84 billion.
But Smucker said that like-for-like net sales increased, driven by a 13-percentage-point increase related to volume and mix, as well as an 8-point impact from "net price realization," including in pet foods and US retail consumer foods.
Volume growth was primarily driven by Jif peanut butter, contract manufacturing sales related to the divested pet food brands, and coffee products, the firm said, while price increases were seen in US retail pet foods and US retail consumer foods segments.
For the full year, JM Smucker now expects $9.45 to $9.85 in adjusted earnings per share, up from its previous guidance of $9.20 to $9.60.