Aug 25 (Reuters) - Folgers coffee maker J.M. Smucker on Wednesday forecast a smaller-than-expected decline in annual sales, benefitting from steady demand for its ready-to-eat meals and coffee.
Shares of the company rose about 4% premarket, after J.M. Smucker raised its annual profit forecast on the back of tariff-related refunds.
Here are some details:
• Budget-conscious consumers, pressured by still-high inflation, are increasingly opting to eat at home rather than dining out, lifting demand for essential
goods such as coffee and jams.
• Easing coffee prices, which surged due to higher green coffee costs and tariffs in recent years, pushed J.M. Smucker to lower prices.
• The company's quarterly gross profit increased to $504.9 million, which included tariff refunds of $115.0 million.
• The company forecast annual net sales to decrease by 1% to 2%, compared with its prior forecast of a 3% to 4% decline.
• It expects full-year adjusted earnings to be between $10.50 and $11 per share, compared with its prior expectation of $9.75 to $10.25.
• The Jif peanut butter maker's net sales for the quarter ended July 31 stood at $2.22 billion, beating analysts' average estimate of $2.13 billion, according to data compiled by LSEG.
• Excluding tariff refunds, it earned $3.24 per share on an adjusted basis during the first quarter, surpassing estimates of $2.22.
(Reporting by Koyena Das in Bengaluru; Editing by Shreya Biswas)
