J.M. Smucker Is Getting Strangled By Lower Prices
The stagnation at J.M. Smucker (NYSE: SJM) has an eerie resemblance to that of Kraft Heinz (NASDAQ: KHC). The old school maker of various jams, Jif peanut butter, and Folger's coffee reported a lackluster fiscal first quarter with earnings coming in well below expectations.
Adjusted financials were not promising
Revenues declined 6% year over year to $1.78 billion. It's worth noting that J.M. Smucker had some line items including both acquisitions and divestitures that affected these sales. Excluding those items, J.M. Smucker reported a 4% decline on an adjusted basis. One of the key areas that was credited in the shift in net sales were prices. Net prices decreased for key items like coffee and peanut butter, while only being partially offset by increases in pricing for snacks and pet food. Ironically, one of the primary areas held accountable for reduced net sales was pet food.
Source Fool.com
