The owner of the UNCRUS JM SMUCKER today (August 27) has increased his forecasts for annual net sales after a first tax quarter which has beaten the expectations of the management.
The change in forecasts was light but was a new positive for an American manufacturer who faced questions from Wall Street on parts of his strategy.
JM SMUCKER, which also has brands such as the TWINKIES hostess, now sees its net sales increase by 3 to 5%, against its previous forecast from 2 to 4%.
The company has retained its annual adjusted profits per share unchanged at $ 8.50 to $ 9.50.
“Our first quarter results have exceeded our expectations and reflect the continuous momentum of the company. Our teams have demonstrated agility throughout the organization, and although the external environment continues to be dynamic, we successfully manage what we can control,” said CEO and President Mark Smucker.
Nevertheless, the course of JM Smucker’s action fell in pre-commerce exchanges due to the company’s prospects for adjusted BPA.
During the three months to the end of July, the net sales of JM Smucker dropped by 1% to 2.11 billion dollars. Excluding sales and recent exchange rates of assets, net sales increased by 2%.
The gross profit dropped 40% to $ 474.7 million in the middle of high costs of basic products, “unfavorable volume / mixing” and the impact of transfers.
In February, JM Smucker sold his brands Cloverhill and Big Texas to his American colleague JTM Foods.
Last October, the company unloaded its Voortman Cookies brand at Us Snacks Maker Second Nature Brands.
Operating profit dropped from 87% to $ 45.6 million. The adjusted operating profit decreased by 17% to $ 370.3 million.
JM SMUCKER recorded a loss of $ 43.9 million in the first quarter against a net profit of $ 185 million in the first quarter of its previous financial year.
Mr. Smucker added: “Due to the results of the first quarter better than expected and of the sustained momentum for our portfolio of leading brands, we increase our expectations of net sales for the exercise.
In June, JM Smucker said that he “would reduce our priorities” for his Sweet Snacks division after reserving another series of deficiencies against the company.
The company recorded disability fees of $ 980 million made up of $ 867.3 million linked to good will in its oven -cooked snack unit and a disadvantage of $ 112.7 million linked to the hostess brand.
JM SMUCKER, which acquired hostess brands of Snacks Maker in an agreement of $ 5.6 billion two years ago, recorded more than $ 1 billion in depreciation charges for the same units in March.
The acquisition of the hostess raised the eyebrows to Wall Street at the time, while the subsequent sale of the Voortman company was questioned by certain analysts.
