(Reuters) – Jeff Peanut Butter maker JM Smucker (SJM) raised its annual profit forecast and beat second-quarter estimates on Tuesday, benefiting from resilient demand for packaged and frozen foods and rising coffee prices.
Shares of the Ohio-based company were up about 5% in pre-market trading, as it maintained its annual sales target.
With living costs remaining high, consumers are increasingly choosing to cook at home rather than eating out, leading to continued demand for the company’s essential household items, including coffee, jams and spreads, despite price hikes. has increased .
The price hike helped JM Smacker counter rising coffee prices, which have been fueled by supply chain bottlenecks.
Sales at Smucker’s U.S. retail coffee business rose 3% to $704 million in the quarter. Gross quarterly margin will increase to 39% from 37.4% a year ago.
Dunkin’ Coffee Maker’s results came in contrast to packaged food peers Kraft Heinz and Conagra Brands, which reported disappointing sales as customers traded up for cheaper alternatives.
Smucker now expects annual adjusted earnings per share in the range of $9.70 to $10.10, compared to the prior forecast of $9.60 – $10.00.
In the quarter ended Oct. 31, the company posted quarterly profit of $2.76 per share on an adjusted basis, topping estimates of $2.51, according to data compiled by LSEG.
The company posted net sales of $2.27 billion for the quarter, compared to analysts’ average estimates of $2.26 billion, according to LSEG data.
(Reporting by Neil J Kanat and Aishwarya Venugopal in Bengaluru; Editing by Taseem Zahid)
