Smucker benefits from price increases, boosts earnings outlook

J.M. Smucker Co.
SJM,
+1.86%
benefited from price increases in the latest quarter, and the maker of Jif and Meow Mix just upped its profit forecast for the full year. The company posted fiscal first-quarter net income of $183.6 million, or $1.79 a share, compared with $109.8 million, or $1.03 a share, in the year-prior period. On an adjusted basis, Smucker earned $2.21 a share, while the FactSet consensus was for $2.02 a share. Net sales declined to $1.81 billion from $1.87 billion, while analysts had been looking for $1.84 billion. Smucker said that comparable net sales increased, however, 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 U.S. retail consumer foods. The company saw volume growth in each of its business segments. For the full year, the company now expects $9.45 to $9.85 in adjusted earnings per share, whereas its earlier forecast was for $9.20 to $9.60.