The J.M. Smucker Company (NYSE: SJM) announced second quarter financial results. Net sales rose 5 percent, increasing by USD 97.9 million led by the recent acquisition of Ainsworth and the Company’s growth brands.
“Our net sales increase was supported by the positive contribution from the acquired Rachael Ray® Nutrish® brand,” noted Mark Smucker, Chief Executive Officer. “We also realized strong sales gains across many of our growth brands, including Smucker’s® Uncrustables®, Nature’s Recipe®, and Café Bustelo®. We are focused on growing brands consumers love in the pet food, coffee, and snacking categories, as highlighted by the completion of the U.S. baking business divestiture during the quarter. While the income taxes related to the sale of the baking business impacted our earnings per share, we were pleased with the business results for the quarter. Ongoing execution of our strategy for both growth and core brands is essential to delivering long-term shareholder value.”
Gross profit increased 2 percent or USD 16.3 million. Net interest expense increased USD 14 million due to debt issued earlier in the fiscal year to finance the Ainsworth acquisition. The Company has updated its full-year outlook to reflect the impact of the divested U.S. Baking business on August 31, 2018. In addition, the net sales guidance reflects lower pricing and competitive activity, primarily in coffee and peanut butter.