J.M. Smucker earnings: pet food sales slip, but profits surge
The company reported a mixed performance in the last quarter, which was still impacted by the Post Holdings divestiture from 2023.
The Ohio-based food manufacturer saw its pet food net sales decline by 9% to $399.7 million (€360.6M) between May and July 2024, the first quarter of its 2025 fiscal year (FY). During the same period last year, sales accounted for $441 million (€398M).
This decrease was mainly due to a $40.1 million (€36.2M) drop in contract manufacturing sales, driven by the divestiture of specific pet food brands. This fell from $50.6 million (€45.6M) last year to $10.5 million (€9.47M) this fiscal year.
The segment’s profit surged 42% during the quarter, reaching $115.3 million (€103.8M). In the first quarter of FY 2024, profit hit $81.3 million (€73.4M).
“Profit margins in the quarter were strong for our pet portfolio, driven by operational improvements from our transformation office and the wind-down of our co-manufacturing agreement. Additionally, we are lapping supply chain challenges in the prior year that impacted product supply and margins across the business,” says company CEO Mark Smucker.
Boost in dog and cat portfolio
In dog snacks, J.M. Smucker’s Milk-Bone® brand demonstrated strong net sales growth of over 60% versus the prior year in soft and chewy snacks with the launch of new Milk-Bone® Peanut Buttery Bites.
“This launch capitalizes on the continued humanization trends in the pet category and is already exceeding our expectations. We are excited to launch the product nationally this coming January,” adds Smucker.
The Meow Mix® brand maintained its dry cat food market leadership, recording mid-single-digit sales growth and reclaiming the top volume share position. The company plans to introduce innovative flavors and textures early next year to elevate cats’ mealtime experience.
Market outlook
J.M. Smucker continues to face challenges in the pet food sector, particularly with price pressures and changes in consumer spending behavior.
Smucker anticipates a $100 million (€90.2 million) decline in contract manufacturing sales for FY 2025 compared to the previous year and is expected to total approximately $35 million (€31.6M).
Share this story:
