J.M. Smucker income up 4% in quarter
August 14, 2008
by FoodBusinessNews.net Staff
ORRVILLE, OHIO — For the first quarter ended July 31, the J.M. Smucker Co. posted net income of $42,291,000, equal to 78c per share on the common stock, up 4% from $40,761,000, or 72c per share, during the same quarter of the previous year.
Sales for the quarter were $663,657,000, up 18% from $561,513,000 from the same quarter of the previous year.
"We delivered good sales and earnings growth this quarter, establishing momentum as we enter the back-to-school and fall bake periods," said Richard Smucker, president and co-chief executive officer. "We are practically pleased that we are experiencing sales growth across most of our brands despite taking significant price increases to offset record raw material costs. Our strategy of owning No. 1 brands and supporting them with consistent investments in marketing and product innovation provides opportunities for continued long-term profitable growth."
Sales in the quarter were boosted by pricing actions and volume gains in categories such as Smucker’s fruit spreads, Uncrustables sandwiches, Pillsbury baking mixes and frostings, and Hungry Jack potatoes and pancakes.
"We look forward to adding another No. 1 brand with the merger of the Folgers coffee business into Smucker," said Tim Smucker, chairman and co-chief executive officer. "Folgers will be our largest brand with sales in excess of $1.5 billion and builds on our center-of-store focus. We expect the addition of Folgers to significantly increase cash flow and, combined with the substantial increase in our sizes and scale, provide a platform for future growth and enhance our long-term growth opportunities."