The J.M. Smucker Company (SJM)

The J.M. Smucker Co. reported net sales of $2.2 billion, up 5 percent, for the first quarter of its 2027 fiscal year, which ended July 31, 2026 1.

Net income per diluted share was $3.03, against a loss of $0.41 a year earlier 1. Adjusted earnings per share, which leaves out items the company treats as outside normal operations, was $3.24 and included an $0.84 benefit from tariff refunds 12.

Gross profit included tariff refunds of about $115.0 million, which the 10-Q says were recognized in the cost of products sold 13. The 10-Q adds that substantially all requested refunds have been received 3.

Chief executive Mark Smucker said the quarter exceeded the company's expectations for both net sales and adjusted earnings per share 1. The company now expects net sales to fall 1.0 to 2.0 percent for the year and adjusted earnings per share of $10.50 to $11.00 1.

Reuters reported that the earlier forecast was a decline of 3 per cent to 4 per cent 4. The open question is the tariff refunds, which the guidance does not assume will change 1.

The company was established in 1897 and incorporated in Ohio in 1921 2.

Its sales have been reshaped by buying and selling businesses 2. It sold certain pet food brands in 2023, Sahale Snacks and the Canada condiment business in 2024, and Voortman and some Sweet Baked Snacks value brands in 2025 2.

The largest purchase came on November 7, 2023, when it completed a cash and stock deal for Hostess Brands, a maker of sweet baked goods 2. The total purchase consideration was $5.4 billion 2.

Food Processing reported that in the third quarter of fiscal 2025 Smucker took $1 billion in impairment charges, a write-down of what it judged the Hostess business to be worth 7.

Smucker announced in May 2025 that it would close its Indianapolis Hostess plant, where about 371 employees would lose their jobs 7. The 10-K says the plant closed during fiscal 2026 27.

The year ended April 30, 2025 showed an operating loss of $673.9 million and a net loss of $1,230.8 million 2. The year ended April 30, 2026 narrowed those to operating income of $360.2 million and a net loss of $138.7 million 2.

Net sales in fiscal 2026 rose to $9,050.9 million from $8,726.1 million 2. Higher net pricing for coffee added 9 percentage points, while volume and mix took away 4 points 2.

Gross profit, revenue minus the cost of making the goods, fell to 33.5 percent of net sales from 38.8 percent 2. The 10-K blames higher costs, including commodity costs and tariffs 2.

Uncrustables, the crustless frozen sandwich, grew from a $12 million brand to about $800 million in annual net sales, said Mark Smucker in November 2024 6. A $1.1 billion plant in McCalla, Alabama opened that month 6.

Coffee

Coffee is the largest segment, built on Folgers, Dunkin' and Café Bustelo 2. Fiscal 2026 net sales were $3,304.9 million, up 18 percent, but segment profit fell to $701.5 million, a margin of 21.2 percent against 28.3 percent 2.

Dunkin' is licensed: the licenses cover packaged coffee sold in stores, not Dunkin' restaurants, and run until January 1, 2039 2. Coffee net sales rose 13 percent in the latest quarter to $807.8 million 1.

Chief executive Mark Smucker said in June that lower green coffee costs led to temporary price reductions, though no permanent cut was promised 5.

Frozen handheld and spreads

This segment sells Uncrustables, Jif peanut butter and Smucker's fruit spreads and toppings 2. Fiscal 2026 net sales were $1,853.9 million, down 1 percent, as growth in Uncrustables was offset by peanut butter and fruit spreads 2.

Pet foods

Pet foods covers Meow Mix cat food and the Milk-Bone, Pup-Peroni and Canine Carry Outs dog snacks 2. Net sales were $1,600.0 million, down 4 percent, with dog snacks lower and cat food higher 2.

Sweet baked snacks

This segment is the Hostess brand 2. Fiscal 2026 net sales fell 18 percent to $971.3 million, and segment profit fell to $97.2 million, a margin of 10.0 percent against 18.6 percent 2.

Quarterly net sales fell another 7 percent, with snack cakes and breakfast items lower 1.

Away from home and international

Away From Home sells to restaurants, hospitals, schools and other food service buyers, and became a separately reported segment in the fourth quarter of fiscal 2026 2. Its fiscal 2026 net sales were $879.0 million, up 15 percent 2.

Sales outside the U.S., mostly in Canada, were 4 percent of the total 2.

Plants, people and rivals

The company owns most of its plants, including coffee in New Orleans, peanut butter in Lexington, Kentucky, and Uncrustables in Scottsville, Kentucky and Longmont, Colorado 2. Its headquarters is in Orrville, Ohio 2.

Mark Smucker is chief executive, president and chair, and Tucker Marshall is chief financial officer 1. Collective bargaining agreements cover 21 percent of full-time employees at eight plants 2.

The K-Cup trademark belongs to an affiliate of Keurig Dr Pepper, and the company uses it with permission 2. Debt stood at $6,737.8 million on July 31, 2026 3.

The umbrella, in words

The 10-K lists the principal brands by segment: Folgers, Dunkin', Café Bustelo, Uncrustables, Jif, Smucker's, Meow Mix, Milk-Bone, Pup-Peroni, Canine Carry Outs and Hostess 2.

The company owns Hostess Brands, which it bought in 2023 2. It does not own Dunkin': it uses the name under three licenses it agreed 2.

No single holder is named as controlling in the sources read; the 10-K describes five generations of family leadership and only six chief executives in over 125 years 2. At the annual meeting on August 12, 2026, 91,893,859 shares were represented 8.

For fiscal 2027 the company expects net sales to fall 1.0 to 2.0 percent and adjusted earnings per share of $10.50 to $11.00 1. It expects free cash flow of about $1.1 billion and capital spending of $325.0 million 1.

It also expects an adjusted gross profit margin of about 38.75 percent and interest expense of about $335.0 million 1.

The chief financial officer said in June that the coffee segment should return to a margin in the high-20s percent range this fiscal year 5. Bloomberg reported on June 9 that Smucker plans to lower coffee prices next year as green coffee costs decline 9.

Its long-term goals are low single-digit growth in net sales, mid-single-digit growth in adjusted operating income and high single-digit growth in adjusted earnings per share 2.

Three labor contracts expire in 2027, covering about 5 percent of employees 2.