The J. M. Smucker Company’s retail pet foods segment’s net sales in the U.S. increased US$46.6 million in the fourth quarter of fiscal year 2020, which ended April 30, compared to the same period in 2019. U.S. pet food sales increased by 6% over the previous year’s US$721.4 million for Smucker. This sales growth included an estimated 8 percentage point benefit from pandemic-related purchasing. The company’s pet food segment reached net U.S. retail sales of US$767.8 million in FY20 Q4. Smucker’s pet segment profit hit US$149.6 million, up 14% over the previous year. Considering the previous 12 months ending April 30, 2020, Smucker net sales stood at US$2,869.5 million, compared to US$2,879.5 million.
Smucker brands leading growth in FY20
Meow Mix and Milk-Bone brands led volume/mix growth for all major Smucker brands in the cat food and dog snacks categories. In dog food, volume/mix gains for Kibbles 'N Bits, Nature's Recipe, and Gravy Train were more than offset by the anticipated declines for the Natural Balance and Rachael Ray Nutrish brands. Net price realization reduced net sales by 2 percentage points, primarily reflecting increased promotional activity for the Rachael Ray Nutrish brand. Segment profit increased US$18.4 million, primarily reflecting the increased contribution from volume/mix and reduced marketing expense, partially offset by increased distribution costs.
Beyond pet food, Smucker’s overall net sales increased US$189.9 million, or 10 percent, driven by increased consumer demand during the COVID-19 pandemic. However, Smucker’s fiscal year 2021 outlook includes an expected net sales decline of 1 to 2 percent.
J.M. Smucker pet food sales declined 5% in Q3 FY20
Sales of J.M. Smucker pet foods and treats declined in fiscal year 2020 (Q3 FY20). Net sales for Smucker’s pet segment fell to US$721.9 million, a year-over-year decline of 5% or US$37.1 million. Smucker pet food and treat segment profit dropped by 1% to US$146. Natural Balance brand and private label dog food were largely responsible for the decline, along with Rachael Ray Nutrish. Smucker executives discussed the company's Q3 FY20 financial results in an earnings call on Feb. 26.
About J.M. Smucker pet segment
Smucker runs processing plants in Decatur, Alabama, Lawrence, Kansas, and Buffalo, New York, according to Petfood Industry’s Top Pet Food Companies Current Data. 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 co-packers and re-packers in the US, Canada and Thailand.
- Annual Revenue 2019: US$2,822,000,000
- Production Plants 2019: 6
- Employees 2019: 2,775
