Packaged food maker J.M. Smucker forecasts annual profit below estimate
June 10 (Reuters) - Jif peanut butter maker J.M. Smucker (SJM.N), opens new tab forecast annual profit below the estimate on Tuesday, as sequential price hikes have been squeezing demand for its dog snacks and sweet baked goods.
Shares of Orrville, Ohio-based company were down about 7% in premarket trading.
Packaged food makers, including J.M. Smucker, Kraft Heinz (KHC.O), opens new tab and Campbell's Co (CPB.O), opens new tab, have been raising product prices to counter higher costs from commodities, such as green coffee, which have hurt their sales.
J.M. Smucker is among the firms that have been facing the brunt of the Trump administration's ever-shifting tariff policy, which has disrupted businesses and rattled shoppers worldwide.
The company expects annual profit in the range of $8.50-$9.50 per share, compared with analysts' estimate of $10.26 per share, according to data compiled by LSEG.
Uncrustables sandwich maker said its fiscal 2026 forecast accounts for the impact from tariffs, changes in consumer behaviors as well as ongoing input inflation.
For the fourth quarter, the company posted net sales of $2.14 billion, compared with the estimate of $2.19 billion.
The company's net sales in the quarter were hurt by declines in its pet foods, baked snacks as well as frozen handheld and spreads businesses in the United States.
Net sales in its pet foods segment, which accounts for about 19% of its total revenue, decreased 12.6%, while the frozen foods segment dipped 0.2%, compared to a year ago.
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