Citing “inflationary pressures,” food company J.M. Smucker (SJM) has lowered its forward guidance for the remainder of 2024.
The maker of Twinkies and Jif peanut butter lowered its guidance while announcing financial results that largely beat Wall Street forecasts.
J.M. Smucker posted fiscal first-quarter earnings per share (EPS) of $2.44 U.S., which was ahead of the $2.17 U.S expected on Wall Street.
Revenue of $2.13 billion U.S. matched the consensus estimate of analysts who cover the company.
However, despite the fiscal Q1 beat, J.M. Smucker revised down its fiscal-year outlook to reflect what it called “inflationary pressures and diminished discretionary income.”
J.M. Smucker now expects fiscal 2025 sales to increase 8.5% to 9.5%, compared with previous guidance of 9.5% to 10.5% growth.
Earnings for the entire year are estimated at between $9.60 U.S. and $10 U.S. per share, compared with prior estimates of $9.80 U.S. to $10.20 U.S. a share.
The earnings and guidance come as J.M. Smucker has been adjusting its business operations over the past year.
The company divested its Canadian condiment business, sold off mixed-nuts company Sahale Snacks, and got rid of some pet food brands.
At the same time, it acquired baked goods company Hostess Brands last November in an acquisition worth $5 billion U.S.
Like many food companies and grocery retailers, J.M. Smucker is struggling as consumers pullback spending amid high inflation and interest rates.
The stock of J.M. Smucker has declined 16% over the last 12 months to trade at $120.70 U.S. per share.
