Coffee, snacks and pet food manufacturer sees healthy coffee segment growth thanks to retail sales of Dunkin’ and Café Bustelo branded coffee
J.M. Smucker sells Folgers, Dunkin' and Café Bustelo retail coffee products | via Shutterstock
Reporting its second quarter financial performance for the three months ended 31 October 2021, J.M. Smucker said total sales increased $16m, or one percent, to $2.05bn compared to the same period a year ago.
Gross profit decreased $106.7m, or 13 percent, to $711.5m. The company attributed the fall to increased commodity, manufacturing, transportation, and packaging costs, and the noncomparable impact of the divestures of its Crisco and Natural businesses.
However, Dunkin’ and Café Bustelo coffee products were credited as driving growth across J.M. Smucker's US retail coffee business, with net sales increasing $50.4m year-on-year to $645.1m and segment profit increasing $5.7m to $207.8m.
In August 2021, J.M. Smucker, which also sells the Folgers coffee brand, highlighted Dunkin’ and Café Bustelo as the two fastest growing brands in its coffee category.
Meanwhile, J.M. Smucker’s. international out-of-home business recorded net sales of $262.1m, 4% higher compared to the same period in the year previous.
"We are pleased with our ability to increase our net sales and adjusted earnings per share expectations for the fiscal year despite increasing cost inflation and continued supply chain disruption," said Mark Smucker, J.M. Smucker President and CEO.
Despite modest gains in its second quarter, J.M. Smucker warned pandemic implications, cost inflation and supply chain volatility
would continue to adversely impact its financial performance ‘and cause uncertainty and risk for the fiscal year 2022 outlook.’
‘The broader outlook remains uncertain,’ the company added.
J.M. Smuckers promotes that its products are present in 90% of US homes. Its prominent brands include the Folgers, Café Bustelo and licensed Dunkin’ at-home coffee ranges, Smuckers spreads and Milk Bone pet food.
The reported Dunkin sales relate to branded packaged coffee products sold at supermarkets and other retail locations and do not include Dunkin’s brick-and-mortar stores.