J.M. Smucker net income up 42% in quarter

by FoodBusinessNews.net Staff
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ORRVILLE, OHIO — Boosted by net sales growth, gross margin improvements and a reduction in restructuring costs, The J.M. Smucker Co. posted a 42% increase in net income during the first quarter.

For the quarter ended July 31, the company posted a net income of $40,761,000, equal to 72c per share on the common stock — up from $28,724,000, equal to 51c per share, during the same quarter of the previous year.

Sales for the quarter were $561,513,000, up 7% compared with a net income of $526,509,000 during the same quarter of 2006.

"We have started off the year with good momentum," said Richard Smucker, president and co-chief executive officer. "To support future growth, we continue to introduce new products and are spending behind our brands with marketing support. We are committed to investing in the long-term growth of our brands, even as we expect raw material costs to continue to escalate for the foreseeable future."

Sales during the quarter were boosted by the acquisition of Eagle Family Food Holdings, Inc., which contributed $43.5 million during the quarter. This was equal to about half of the increase in net sales. The Jif, Crisco, Pillsbury and Uncrustables businesses had strong performance in the quarter as well.

Sales in the U.S. retail market segment were up 18% in the quarter to $418.2 million compared with $353.3 million during the same quarter of the previous year. An interruption in the peanut butter supply increased demand for the company’s product, and net sales in the consumer oils and baking strategic business area were up 42%.

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