J. M. Smucker pet food sales contributed to the company’s increase in net sales during the second quarter of fiscal year 2017.
"We are pleased with our second quarter results, primarily driven by our pet food business and the strong performance of a number of key brands across all our businesses," said Mark Smucker, chief executive officer of the company, in a press release. "This included double-digit sales increases for Nature's Recipe dog food, Dunkin' Donuts coffee, and Jif peanut butter. We also experienced continued strong growth of our brands in e-commerce, as sales in this channel doubled in the quarter for our US retail segments.”
Smucker US retail pet foods
Smucker’s pet food segment net sales increased US$21.1 million, reaching US$552.1 million. Pet food segment sales increased four percent compared to the previous year. Segment profits from Smucker’s pet foods rose to US$122.9 million, an increase of seven percent over last year.
Favorable volume/mix, driven by the Nature's Recipe and Meow Mix brands, increased net sales by 5 percentage points. A slight decline in net price realization was primarily attributed to the Meow Mix brand. Segment profit increased US$8.4 million primarily reflecting synergies and cost savings initiatives, which more than offset increased marketing expense.
Highlights of J. M. Smucker Q2 FY17
- Net sales increased 1 percent, reflecting improved trends from the prior quarter.
- Net income per diluted share increased 13 percent to $1.71.
- Adjusted earnings per share was $2.02, a decrease of 1 percent.
Net sales increased US$9.7 million, or one percent. Lower volume/mix impacted net sales by one percentage point, as declines in the oils and baking categories were partially offset by gains in pet food. Favorable foreign currency exchange contributed US$5.4 million to net sales.
