J.M. Smucker pet food segment net sales increased US$198.0 million in the third quarter of fiscal year 2019 (Q3 FY19) to reach US$759 million. This represents a 35 percent increase over the previous year.
However, that increase in pet food sales included a US$199.2 million contribution from the 2018 acquisition of Ainsworth Pet Nutrition. Without Ainsworth, Smucker pet food segment net sales declined US$1.2 million. This decline reflected the exit of certain private label businesses and discontinuation of Gravy Train wet dog food products, which reduced net sales by US$18.8 million.
Pet food segment profits for Smucker increased US$30.3 million to reach US$147.9 million, an increase of 26 percent. Smucker’s pet food segment profit margin was 19.5 percent.
Without Ainsworth, segment profits did not change from fiscal year 2018 because increased pricing offset higher costs. Volume/mix reduced net sales by 3 percentage points, resulting from the exit of private labels and discontinuation of Gravy Train, along with declines in sales of Natural Balance. These reductions were partially offset by gains for the Meow Mix and Kibbles 'n Bits brands. Higher net pricing offset most of the volume/mix decline due to increased pricing for the Milk-Bone, Meow Mix and Natural Balance brands.
J.M. Smucker announced their earnings for the third quarter of fiscal year 2019 on Feb. 26.
About J.M. Smucker pet food segment
J.M. Smucker is a leading producer, distributor and marketer of premium-quality, branded pet food and pet snacks in the US, according to the Petfood Industry Top Pet Food Companies Current Data. With Smucker’s acquisition of Big Heart Pet Brands in 2015, the parent company gained immediate and significant presence in the field. Smucker runs processing plants in Decatur, Alabama; Lawrence, Kansas and Buffalo, New York. Both a processing plant and distribution center are operated at locations in Topeka, Kansas and Bloomsburg, Pennsylvania. In addition to its own brands, Smucker produces and distributes private label pet products, and utilizes 16 co-packers and 12 re-packers in the U.S., Canada and Thailand.
Smucker’s pet food segment annual revenue in 2017 was US$2,100,000,000. The company owned five production plants, along with two other pet food facilities, in 2017, which employed 2,375 people.
