J.M. Smucker’s pet food segment faces ongoing decline

J.M. Smucker’s pet business’ net sales accounted for $452.6 million (€420.5M) in the 3 months ending 30 April 2024. This is 42% less than during the same period in 2023 when sales hit $785.3 million (€729.6M). 

The Ohio-headquartered company also witnessed a 22% decline in profits in its pet portfolio between February and April to $114.1 million (€106M) due to the divestment of pet food brands, increased selling and general and administrative expenses.

However, excluding the divestiture, this segment’s net sales increased by 11% to $46.5 million (€43.2M). Volume and mix improved net sales by 8%.

Yearly drop

The pet food business hit $1.8 billion (€1.B) in the 12 months ending 30 April 2024, representing 21% of global sales.

This figure is 40% less than during the 2023 fiscal year (FY), when the company’s pet portfolio accounted for $3 billion (€2.7B) or 36% of all sales. The company says divested pet food contract manufacturing accounted for 2% of all sales. 

Dog snacks represented more than half (53%) of sales, followed by cat food and snacks (39%). The divested pet food manufacturing contract accounted for 7% of sales.

Yearly outlook

According to the company’s forecast, net sales are expected to increase from 9.5 to 10.5% in FY 2025.

The company expects a 1% decline in pet contract manufacturing related to divested pet food brands across both reported and comparable net sales, totaling approximately $85 million (€79.1M) in the next 12 months.