Shares of The J.M. Smucker Co. (NYSE: SJM) rose over 4% on Tuesday after the branded meals maker delivered an encouraging earnings report for the second quarter of 2025. Each the highest and backside line numbers beat expectations and the corporate raised its earnings steering for the total 12 months. Listed here are the principle takeaways from the Q2 report:
Higher-than-expected outcomes
SJM’s internet gross sales for Q2 2025 elevated 17% year-over-year to $2.27 billion, beating estimates of $2.26 billion. Comparable gross sales elevated 2%. The corporate reported a GAAP lack of $0.23 per share. Adjusted EPS grew 7% to $2.76, surpassing the consensus goal of $2.51.
Enterprise efficiency
In Q2, gross sales within the Espresso section grew 3%, pushed by worth will increase. The section benefited from good points within the Café Bustelo and Folgers manufacturers. Gross sales within the Frozen Handheld and Spreads division grew 5%, fueled by progress within the Uncrustables and Jif manufacturers.
The Pet Meals section recorded a gross sales decline of 4%, as a consequence of decrease gross sales associated to the divested pet meals manufacturers and reduces for the Canine Carry Outs and Pup-Peroni manufacturers, which have been offset by good points within the Milk-Bone and Meow Combine manufacturers. Gross sales in Worldwide and Away From House fell 1%.
SJM continues to focus its assets on the manufacturers it believes have the best progress potential, particularly Uncrustables, Meow Combine, Milk-Bone, and Café Bustelo. The Uncrustables model grew internet gross sales by 16% on the whole firm stage. The brand new facility at Alabama is anticipated to assist the model cross $1 billion in internet gross sales. SJM now expects internet gross sales for this model to be over $900 million in fiscal 12 months 2025. The Milk-Bone model gained from double-digit gross sales progress in gentle and chewy snacks whereas Meow Combine continues to take care of its main place. Café Bustelo grew gross sales by 20% in Q2.
Hostess and Voortman
Gross sales from the Hostess model proceed to be under SJM’s expectations, because the candy baked items class faces headwinds from inflationary pressures and decrease discretionary earnings, which have led to declines throughout all channels, together with comfort shops. The corporate is engaged on driving progress for this model by means of distribution enlargement, product innovation, portfolio evolution, and income synergies.
The corporate has determined to divest its Voortman enterprise and this deal is anticipated to shut in Q3 2025. The transaction is anticipated to affect fiscal 12 months 2025 internet gross sales by approx. $65 million and adjusted EPS by approx. $0.10.
Steerage hike
J.M. Smucker raised its earnings steering for the total 12 months of 2025 and now expects adjusted EPS to vary between $9.70-10.10 versus the earlier outlook of $9.60-10.00. Internet gross sales is anticipated to extend 8.5-9.5% from the earlier 12 months and comparable gross sales is anticipated to extend round 1-2%.
