Key Insights from J.M. Smucker’s Q2 2025 Earnings Results

key points from the Q2 report:

J.M. Smucker reported net sales for Q2 2025 increased by 17% to $2.27 billion, beating estimates of $2.26 billion. Comparable sales also saw a 2% increase. The company reported a GAAP loss of $0.23 per share but an adjusted EPS growth of 7% to $2.76, surpassing the consensus target of $2.51.

In terms of business performance, sales in the Coffee segment grew by 3%, driven by price increases. The Frozen Handheld and Spreads division saw a 5% growth fueled by the Uncrustables and Jif brands. However, the Pet Foods segment recorded a 4% sales decline due to lower sales associated with divested pet food brands.

J.M. Smucker continues to focus on brands with high growth potential like Uncrustables, Meow Mix, Milk-Bone, and Café Bustelo. The company expects the Uncrustables brand to hit over $1 billion in net sales with the help of the new facility in Alabama. The Milk-Bone brand experienced double-digit sales growth in soft and chewy snacks while Café Bustelo saw a 20% increase in sales in Q2.

The Hostess brand is facing challenges due to inflationary pressures and lower discretionary income, but J.M. Smucker is working on strategies to drive growth in this area. The company has decided to divest its Voortman business, which is expected to impact fiscal year 2025 net sales by approximately $65 million and adjusted EPS by around $0.10.

Lastly, J.M. Smucker raised its earnings guidance for 2025, expecting adjusted EPS to range between $9.70-10.10, up from the previous outlook of $9.60-10.00. Net sales are expected to increase by 8.5-9.5% from the prior year, with comparable sales expected to rise around 1-2%.