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People Really Don't Like Crusts; J.M. Smucker Got That Right

Published 2021-06-03, 11:46 a/m
©  Reuters

By Christiana Sciaudone

Investing.com --  Cut the crusts and hike the prices. That's J.M. Smucker's recipe for a sales increase for the year, even as we ditch the kitchen for restaurants.

Shares rose more than 2% after the jam maker reported fiscal fourth quarter earnings that beat estimates. Profit of $1.89 was better than the expected $1.66 on sales of $1.92 billion, surpassing the forecast of $1.88 billion.

Net sales are expected to decrease 2% to 3% in fiscal 2022 versus the prior year related the divestment of Crisco, but on a comparable basis, net sales are expected to increase about  2% at the mid-point of guidance, "reflecting a deceleration in at-home consumption trends, more than offset by higher net pricing across multiple categories primarily to recover higher costs, continued double-digit net sales growth for the Smucker's® Uncrustables® brand, and a recovery in away from home channels."

Read: inflation, a disdain for crusts and eating out. Shares are trading at their highest in about four years. 

"Looking ahead to fiscal year 2022, we are focused on building upon the momentum and exceptional results we delivered this year," Chief Executive Officer Mark Smucker said in a statement. He is the great-great-grandson of the company's founder. "I am confident the investments we have made in our businesses and the increased agility and flexibility we developed during the past year will enable us to continue driving sustainable growth and shareholder value." 

 

 

 

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