J.M. Smucker starts 2024 with 40% less pet sales

The American pet food manufacturer posted net sales of $2.22 billion (€2 billion) in the third quarter of its 2024 financial year.

J.M. Smucker attributed this increase to its cat food product Meow Mix®, the contract manufacturing sales related to the divested pet food brands and list price increases seen in the US retail pet food segment. 

In its US retail pet food segment, net sales decreased 39% to $465.2 million (€429M).

Excluding $372.5 million (€343.7M) of non-comparable net sales in the year prior related to the divested pet food brands, net sales increased by $79.1 million (€72.9M), marking a 20% increase. 

Volume/mix increased net sales by 13 percentage points, primarily driven by its cat food product, $24.5 million (€22.6M) of contract manufacturing sales related to the divestiture and growth for its Milk-Bone® dog snacks.

Profit and outlook

The segment saw a profit increase of $0.5 million (€0.46M), which the company attributes to higher net price realization, favorable volume/mix and lower costs, offset mainly by the impact of noncomparable segment profit in the year prior related to the divested brands and increased distribution costs.

The company’s Chair of the Board, President and CEO Mark Smucker, says the company had delivered “another quarter of strong financial results, including organic sales and earnings growth” owing to the execution of its priorities, sustained customer loyalty and volume growth across the business. 

J.M. Smucker now expects its comparable net sales to rise by approximately 8.7% in 2024 compared to the previous year. Its earlier guidance was an increase of between 8.5% to 9%.