Smuckers Smacks Down the Competition
Looks like peanut butter distributors can expect to endure a pretty lucrative year, as the frick to their frack brought in delicious earnings in its fourth quarter this morning. The J.M. Smucker Company (NYSE: SJM) reported 4Q EPS up 13 percent along with a net sales increase of 14 percent.
SJM, a brand that umbrellas several companies other than its famous gooey jelly, overcame the challenge of higher food prices putting customers off in recent quarters with a 10% rise in profits alone. COO Vince Byrd mentioned that softening commodity costs could continue to provide some relief to improve volumes for the successful brand.
Dipping its toes further into the foodservice business, majority of the results can be attributed to the company's privately held Rowland Coffee Roasters business and its recent merger with Sara Lee's (NYSE: SLE) coffee and hot beverage sector, (soon to be operating under the name “D.E MASTER BLENDERS 1753”).
CEO Richard Smucker commented on the unbeatable mash-up of his several businesses and the achievements they have garnered as of late.
"As we look ahead, we will continue to invest in our portfolio of trusted brands, build upon our recent acquisitions, advance our extensive pipeline of innovation, further our supply chain productivity initiatives, and build upon the foundation being laid in China. We are well-positioned for continued growth," Smucker said.
SJM's net sales reached $1.36 billion in its most recent quarter, driven by higher realized prices and acquisition buzz. Management set guidance expectations for sales to continue climbing throughout fiscal 2013, hoping to eventually reach a 7 percent increase. Smuckers estimated earnings of $5 to $5.10 per share in the coming year as well.
It appears SJM investors can expect upcoming quarters to display results much like the positive ones they saw today. With overall lower volumes and plans to continue staying cost-competitive in the industry, SJM certainly won't spread itself too thin anytime soon.
SJM closed yesterday at $76.05, down 2.71% year-to-date.
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