J.M. Smucker’s pet business slips in Q3, but cat food continues to grow

J.M. Smucker’s pet foods segment reported a 1% year-over-year (YoY) decline in net sales to $417.1 million (€383.7M) in the third quarter (Q3) of fiscal year (FY) 2026, ending 31 January.

The decrease was driven by a 2-percentage-point (p.p.) decline in volume/mix, primarily reflecting lower sales of the Pup-Peroni dog snack and the divestiture of pet food brands in the prior year.

Segment profit rose 4% YoY to $121.9 million (€112.1M), primarily driven by lower marketing spend. Profit margin increased 160 basis points (bps) to 29.2%.

On average, net price realization was neutral to net sales, the company says, due to higher net pricing for cat food, offset by lower pricing for dog snacks. 

Cat and dog

The Ohio-based manufacturer notes that both the cat and dog categories remain highly attractive, supported by favorable pet population trends, continued pet humanization and sustained growth in e-commerce.

The Meow Mix brand outpaced the category in dry cat food in terms of sales and household growth, the company says, supported by distribution gains, innovation and marketing investments. The manufacturer is launching more products in its mixed category with treats that combine wet and dry formats.

The dog snacks category has rebounded from the previous quarter. In Q3, the Milk-Bone dog treat brand reported a 3% increase in net sales, driven by gains in both volume and household penetration. The company attributes growth to brand messaging and expanded “consumption through impulse opportunities across innovation and seasonals.”

J.M. Smucker also increased premium offerings, especially with launches within Milk-Bone® Peanut Buttery Bites, and changed packaging to highlight functionality.

Group performance

Overall net sales grew 7% YoY to $2.3 billion (€2.12B), reflecting an increase of $153.4 million (€141.1M) and exceeding company expectations. Excluding divestitures and foreign currency exchange, net sales rose 8% during the period.

The growth came via price, with a 10-p.p. contribution from net price realization, while volume/mix decreased by 2 p.p. The latter was mainly driven by declines in sweet baked goods and fruit spreads, as well as the divested pet food brands.

Despite revenue growth, net loss for the quarter was higher than the previous year, at $724.2 million (€613M). 

CEO Mark Smucker has made improving profitability one of the 3 core priorities for the future, alongside advancing a long-term growth strategy and “a disciplined capital deployment model that prioritizes organic growth opportunities, debt paydown and shareholder return in the form of dividends and share repurchases.”

Guidance

For FY2026, J.M. Smucker expects net sales to increase in the range of 3.5% to 4% YoY. The company also expects an approximately $25M (€23.0M) reduction in net sales in Q4 due to a temporary production disruption in its Sweet Baked Snacks business following a fire at its Emporia, Kansas, facility.

Adjusted gross profit margin is expected to be approximately 35%. The company maintained its full-year adjusted earnings per share (EPS) guidance range of $8.75 (€8.05) to $9.25 (€8.51), with $9 (€8.28) at the mid-point.