Q3 2025 J M Smucker Co Earnings Call Transcript
Key Points
- JM Smucker Co (SJM) anticipates sequential improvement in sales, driven by recovery in the pet portfolio and a better-than-expected outlook in the coffee segment.
- The company remains confident in the Hostess acquisition, citing the brand's iconic status and underlying trends in sweet snacking.
- Despite high coffee costs, the at-home coffee segment remains strong, with consumers favoring it as an affordable option.
- The company is on track to achieve $100 million in synergies from the Hostess acquisition by the end of fiscal year 2026.
- Leadership changes and strategic actions are being implemented to stabilize and grow the Hostess brand, with a focus on innovation and limited-time offerings.
- Comparable sales in fiscal Q3 declined by more than 1%, and the company revised its fiscal 2025 sales target downward.
- JM Smucker Co (SJM) took an $800 million goodwill write-down and a $200 million impairment charge related to the Hostess acquisition.
- The company faces significant headwinds from green coffee inflation, impacting fiscal 2026 earnings outlook.
- Sweet Baked Snacks category is experiencing challenges due to a more selective consumer and executional missteps in distribution and merchandising.
- The company reported a $30 million supply chain disruption in the pet food segment, impacting Q3 results.
Good morning, and welcome to the J.M. Smucker Company's fiscal 2025 third quarter earnings Question-and-Answer session. This conference call is being recorded. (Operator Instructions) I'll now turn the conference call over to Crystal Beiting, Vice President, Investor Relations and Financial Planning and Analysis. Thank you. You may begin.
Good morning, and thank you for joining our fiscal 2025 third quarter earnings question-and-answer session. I hope everyone had a chance to review our results as detailed in this morning's press release and management's prepared remarks, which are available on our corporate website at jmsmucker.com. We will also post an audio replay of this call at the conclusion of this morning's Q&A session.
During today's call, we may make forward-looking statements that reflect our current expectations about future plans and performance. These statements rely on assumptions and estimates, and actual results may differ materially due to risks and uncertainties.
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