Net sales for J.M. Smucker’s pet food segment increased by 14% in the second quarter of fiscal year 2023 compared to the same quarter last year.
“In cat food, net sales increased 19% led by the Meow Mix brand, which grew 22% and benefited from higher pricing and increased volume/mix,” Mark Smucker, president and chief executive officer of J.M. Smucker, said in prepared remarks. “This reflects another strong quarter for the brand, with year-over-year net sales growth in 19 of the last 20 quarters.”
Dog snack net sales increased 15%, he said. Milk-Bone was Smucker’s top dog treat brand with sales up 20%.
“The Milk-Bone brand continues to drive growth through core offerings and premium positioned innovation for our market-leading dog snacks business and the segment overall,” Smucker said.
Milk-Bone grew at twice the pet treat category rate, he said.
Kibbles ‘N Bits and Nutrish brands led dog food net sales, which increased 10% overall.
“Consumer take away was even stronger, up 18%, demonstrating progress on our efforts to stabilize our dog food portfolio,” Smucker said.
“We are well positioned to continue benefiting from some shifts within the category, as our portfolio provides offerings across the price spectrum including premium, mainstream, and value products,” he said.
Internationally, net sales for Smucker’s pet food and snacks experienced double-digit sales and volume growth in the quarter led by the Meow Mix brand.
Smucker pet food net sales in the United States
Considering just the United States, retail pet foods net sales increased 9% in the second quarter of this fiscal year compared to the same period last year.
Net sales increased US$63.6 million. Excluding US$27.8 million of noncomparable net sales in the prior year related to the divested private label dry pet food business, net sales increased $91.4 million, or 14%. Higher net price realization increased net sales by 16 percentage points, primarily reflecting list price increases across the portfolio.
Segment profit increased $20.5 million, primarily reflecting a favorable net impact of higher net price realization and increased commodity and ingredient, transportation, and packaging costs.
“Higher net pricing actions across the portfolio contributed a 16 percentage point increase to net sales, partially offset by a decreased contribution from volume/mix of 3 percentage points, primarily driven by decreases for dog food,” Tucker Marshall, chief financial officer said in a prepared statement.
U.S. net sales growth of cat food and treats and dog food and treats all had double-digit percentage increases. Segment profit increased 21%, primarily reflecting a favorable net impact of higher net price realization and increased commodity and ingredient, transportation, and packaging costs.
“Our strategic growth brands, Meow Mix and Milk-Bone, experienced both sales and volume growth in the quarter, with net sales increases of 22% and 20%, respectively,” he said.
