ORRVILLE, OHIO — Higher expenses and rising commodity prices contributed to a 1% decline in income during the first quarter at The J.M. Smucker Co., but income excluding special project costs was up 1%.
For the quarter ended July 31, the company had net income of $110,863,000, equal to $1 per share on the common stock, which compared with income of $111,523,000, or 98c per share, during the same quarter of the previous year. Excluding special costs during the quarter, income totaled $129,297,000, or $1.17 per diluted share, which compared with $128,240,000, or $1.12 per diluted share, during the same quarter of the previous year.
Sales for the quarter were $1,369,703,000, up 15% from $1,188,883,000 during the same quarter of the previous year.
“We’re pleased with the solid start to the fiscal year with growth in volume, sales and cash flow,” said Richard Smucker, chief executive officer. “While the environment remains challenging, we continue to drive long-term growth through brand-building, product innovation, acquisitions and productivity initiatives while maintaining a healthy balance between volume, market share and profitability. Our results demonstrate the strength and resiliency of our iconic brands, our ability to adjust rapidly in the marketplace and the commitment of our team to our strategy.”
Results for the quarter also include the operations of the North American food service coffee and hot beverage business of Sara Lee Corp., which Smucker acquired on Jan. 3.
“We remain focused on our long-term strategy and have made tactical adjustments to address challenging market conditions,” said Vince Byrd, president and chief operating officer. “We have made significant progress in optimizing price points, closing price gaps and enhancing merchandising activities at retail. Consumers continue to respond positively to these actions, to the new products flowing from our robust innovation pipeline and to the brands we have recently acquired. We believe we are well-poised for the important back-to-school and holiday seasons and for another successful year of growth.”