Sales continued to improve
J.M. Smucker’s (SJM) fiscal 3Q18 top line sustained its growth momentum for the second consecutive quarter. It reported sales of $1.9 billion in fiscal 3Q18, which surpassed analysts’ estimate and increased 1.3% on a YoY (year-over-year) basis. Improved volumes, primarily in the U.S. Retail Foods and U.S. Retail Coffee segments, drove the company’s top-line growth. However, a decline in oils remained a drag.
The company’s U.S. Retail Coffee segment sustained its growth momentum, thanks to a strong performance of its K-Cup offerings. Its Jif and namesake brands also reported healthy growth. However, competitive pricing in roast and ground coffees and a continued decline in its Crisco and Pillsbury brands restrained its top-line growth rate.
By comparison, Hershey’s (HSY) top line fell in 4Q17 as lower volumes took a toll on its sales. Lower shipment volumes affected Kraft Heinz’s (KHC) 4Q17 top line. On the other hand, Kellogg’s (K) 4Q17 sales improved on a YoY basis despite a weakness in cereals. Its top line benefited from incremental sales from its acquired brands. Mondelēz International’s (MDLZ) 4Q17 sales improved on a YoY basis during the last reported quarter, driven by improved prices. However, its volumes marked marginal growth.
J.M. Smucker stood by its prior guidance and expects its top line to stay flat or decline marginally on a YoY basis. However, new product launches in the U.S. Retail Coffee segment and a focus on pricing and merchandising are expected to boost its top-line growth rate.