Smucker pet food sales fell by US$18.2 million, 2% in Q2 FY20

Despite Smucker’s decline in pet food sales, the segment’s profit grew US$13.1 million.

Tim Wall Headshot Small Headshot
(vitalytitov | BigStock.com)
(vitalytitov | BigStock.com)

Net sales for J.M. Smucker’s pet food segment fell 2% to US$709.9 million in the second quarter (Q2) of fiscal year 2020 (FY20). Across all divisions, Smucker expects a 3% drop in net sales for the fiscal year, partly due to anticipated weak performance of certain brands within the U.S. retail pet food segment during the remainder of FY20. J.M. Smucker executives released the company’s financial results during an earnings call on November 22.

"Despite continuing softness for our premium dog food offerings, we were pleased with the performance for the balance of our portfolio, as the momentum for our cat food and pet snacks businesses continued with year over year sales increases," said Mark Smucker, president and chief executive officer of the eponymous company.

Smucker pet food segment sales in Q2 FY20

Smucker pet food net sales declined by US$18.2 million, compared to the previous year when sales stood US$728.1 million for Q2. A US$19.5 million decline in private label sales contributed to the lower net sales. Both planned exits and softness at certain retailers influenced Smucker private label sales. Volume/mix reduced net sales by 4 percentage points. Private label products and the Natural Balance brand contributed to this, while increases for Milk-Bone and Rachael Ray Nutrish brands offset some of the reduction.  Net price realization grew 1%, resulting from list price increases, during the second half of the prior fiscal year across most brands.

Despite Smucker’s decline in pet food sales, the segment’s profit grew US$13.1 million, reflecting the increase in net pricing, reduced marketing expenses and other factors.

Page 1 of 703
Next Page