Milling & Baking News - September 5, 2023 - 12

TUES | 09 05 202 3
Sales jump 49% in Smucker US
retail consumer foods unit
ORRVILLE, OHIO - Net sales within
the US Retail Consumer Foods segment of
the J.M. Smucker Co. increased 49% in the
first quarter ended July 31 as distribution
of the Uncrustables brand expanded into
other channels and the Jif peanut butter
brand lapped a product recall.
Orrville-based J.M. Smucker had net
income of $184 million, equal to $1.79 per
share on the common stock, which was up
74% from $110 million, or $1.03 per share, in
the previous year's first quarter. The company
increased its fiscal-year outlook for
adjusted earnings per share to $9.45 to $9.85
from a previous outlook of $9.20 to $9.60.
Net sales decreased 4% to $1.81 billion
from $1.87 billion. Excluding the divestiture
of certain pet food brands and
the negative impact of foreign currency
exchange, net sales increased 21%. A
favorable impact of 9% came from Jif peanut
butter. A percentage-point increase of
13% came from volume/mix.
In US Retail Consumer Foods, net sales
increased to $464 million from $311 million
in the previous year's first quarter.
Volume/mix, primarily driven by Jif peanut
butter and Smucker's Uncrustables,
increased net sales by 28 percentage
points. Net price increased net sales by 22
percentage points.
Net sales for Uncrustables frozen sandwiches
rose 11% in the quarter, primarily
driven by volume/mix growth in the double-digit
percentages.
" Total company net sales of Uncrustables
sandwiches were approximately $180
million, " said Mark T. Smucker, president
and chief executive officer, in pre-recorded
comments issued Aug. 29. " We anticipate
Clouse sees wider margins ahead
for Campbell Soup Snacks business
CAMDEN, NJ. - After a " fantastic year "
for the Snacks segment of Campbell Soup
Co. with wide sales and profit gains, the
business is expected to generate even
wider profit margins in fiscal 2024, said
Mark A. Clouse, president and chief executive
officer.
Operating profits of the Snacks business
of Campbell Soup in the year ended July
30 were $640 million, up 24% from $517
million a year earlier. Sales were $4.45 billion,
up 13%. In the fourth quarter, Snacks
operating income was $158 million, up 12%
from the final quarter of fiscal 2022. Net
sales were $1.13 billion, up 8%.
Campbell Soup attributed the
fourth-quarter profit gain to higher gross
profit, partially offset by higher marketing
and selling expenses as well as higher
administrative expenses.
" Gross profit margin increased due to
the impact of net price realization and
supply chain productivity improvements
more than offsetting higher cost inflation
and other supply chain costs as well as
unfavorable volume / mix, " the company
said.
Volume/mix in Snacks fell 5% in the
Cookies and crackers drove fourth quarter
sales gains for the Snacks business of Campbell
Soup Co.
12
MILLING & BAKING NEWS
fourth quarter. The sales gains were
driven by cookies and crackers, " primarily
Goldfish crackers and Lance sandwich
crackers, and in salty snacks, primarily
the rate of growth to accelerate for the balance
of the fiscal year as the total brand is
expected to grow net sales of approximately
20% for the full year to over $800 million.
" This growth will be supported by our
initiatives to turn on demand drivers to
further increase household penetration,
including advertising and in-store activations. "
Smucker
expanded distribution of
Uncrustables into convenience stores and
other grab-and-go immediate consumption
foodservice locations, Mr. Smucker
said. In an Aug. 29 earnings call, he said
Uncrustables has found " great customer
acceptance " in Canada.
Smucker in May 2022 initiated a voluntary
recall of select Jif peanut butter products
manufactured at its Lexington, Ky.,
facility. Manufacturing resumed in June
2022. Jif in the first quarter of the current
fiscal year regained its spot as the No. 1
peanut butter brand in household penetration
and in dollar, unit and volume
share, Mr. Smucker said. MBN
Kettle Brand and Cape Cod potato chips, "
the company said.
Operating margin in Snacks was 14.4%
in fiscal 2023, up from 13.1% in fiscal 2022.
" Overall, fiscal 2023 was another fantastic
year for Snacks, " Mr. Clouse said in
a pre-recorded earnings call Aug. 31. He
hailed what he called a " step change " in
operating margin of the Snacks business,
to 14.4% in fiscal 2022.
" This is consistent with our Snacks
margin road map and gives us increased
confidence that we'll continue to deliver
on our long-term goals and show steady
improvement in fiscal 2024, where we
expect to be north of 15%, " he said.
For the year ended July 30, Campbell
Soup net income was $858 million,
equal to $2.87 per share on the common
stock, up 13% from $757 million, or
$2.51, a year earlier. Sales were $9.36
billion, up 9% from $8.56 billion the
year before.
For the fourth quarter, net income was
$169 million, or 57¢ per share, up 76% from
$96 million, or 32¢, a year earlier. Sales
were $2.07 billion, up 4% from $1.99 billion.
Adjusted for the divestiture of Emerald
nuts, sales were up 5%. MBN
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Milling & Baking News - September 5, 2023

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