J.M. Smucker pet food, treat sales up 6% in FY21 Q3

Smucker pet food and treat net sales reached US$768.6 million in FY21 Q3. The segment’s profit stood at US$135.1 million with a profit margin of 17.6%.

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The Rottweiler was the most searched for dog breed in 34 countries in 2020. (denisfilm | Bigstock.com)
The Rottweiler was the most searched for dog breed in 34 countries in 2020. (denisfilm | Bigstock.com)

J.M. Smucker pet food and treat sector net sales increased by 6%, or US$46.7 million, in the third quarter of fiscal year 2021, ended January 31, compared to the same period last year. Milk-Bone  and Pup-Peroni dog snacks and Meow Mix and 9Lives cat food, especially contributed to this growth.

Smucker pet food and treat net sales reached US$768.6 million in FY21 Q3. The segment’s profit stood at US$135.1 million with a profit margin of 17.6%. However, this represented a profit decline of US$10.9 million, or 7%, largely due to a legal issue.

Considering all three quarters, Smucker pet sector net sales reached US$2,169.9 million in the nine months ended January 31, 2021, compared to US$2,101.7 million in FY20.

"We delivered another quarter of strong financial results, including net sales growth in each of our U.S. and International retail businesses, driven by the elevated at-home consumption trends and ongoing execution of our consumer-centric strategy," Mark Smucker, president and chief executive officer, said in a press release. "During the quarter, we completed two divestitures, supporting our priority to further focus our portfolio and resources toward pet food, coffee and snacking.”

In December 2020, The J.M. Smucker Co. announced it would sell Natural Balance premium pet food business to Nexus Capital Management LP, for approximately US$50 million

More on Smucker pet food segment fiscal performance

Adapted from a press release:

Smucker’s pet sector net sales increase reflected a favorable volume/mix, partially offset by lower net price realization and US$1.4 million of noncomparable net sales in the prior year related to the divested Natural Balance business.

The favorable volume/mix contributed 8 percentage points to net sales, primarily reflecting growth for dog snacks and cat food driven by Milk-Bone  and Pup-Peroni dog snacks, as well as Meow Mix and 9Lives cat food. Volume/mix for dog food was neutral, as growth for the Rachael Ray Nutrish brand was mostly offset by declines for private label offerings and the Natural Balance brand. Lower net price realization reduced net sales by 2 percentage points, primarily reflecting increased trade spend.

Segment profit decreased US$10.9 million, primarily reflecting an US$8.1 million legal settlement related to a supplier issue received in the prior year. Excluding this prior year impact, segment profit decreased US$2.8 million, primarily due to the impact of lower net pricing and higher costs, partially offset by favorable volume/mix.

Overall, Smucker’s net sales increased 5%. Excluding noncomparable sales of US$42.1 million for the divested Crisco and Natural Balance businesses, as well as US$2.4 million of favorable foreign currency exchange, net sales increased US$144.1 million, or 7%, a decline of US$10.9 million.

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