J.M. Smucker pet food sales drop 10% in the last quarter
The manufacturer’s revenue was $696.6 million (€628.5M) in the 3 months until January 31st and it expects a similar negative trend in 2022 due to the recent disposal of some of its pet food businesses.
In the 9 months ended January 31st 2022, the Ohio-based company posted $2 billion (€1.8B) in sales for the pet food segment. In the same period of 2020 it reached $2.1 billion (€1.9B).
The company said that this decrease was primarily driven by declines in dog food.
In the last quarter, J.M Smucker posted a profit within the pet food segment of $95.7m (€86.3M), while in the same period of 2020 it reached $135.1m (€121.9M). This is nearly 30% less.
The profit in the last 9 months followed the same descending trend.
The manufacturer highlighted that the results reflect the recent sale of its private-label dry pet food business, including its manufacturing facility in Kansas, to Diamond Pet Foods. The transaction was valued at approximately $33 million (€29.7M).
J.M Smucker also announced in the last weeks the sale of its Natural Balance premium pet food business to Nexus Capital Management for $50 million (€45.1M).
The company forecasts that net sales in 2022 are expected to range from -1.5% to 0.5%.
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