J.M. Smucker raises 2027 profit outlook as coffee sales drive strong Q1 growth
The packaged foods maker expects a smaller annual sales decline after coffee and Uncrustables growth helped lift first-quarter revenue and earnings above analyst expectations.
USA – J.M. Smucker has raised its full-year profit forecast and narrowed its expected sales decline for fiscal 2027, supported by strong demand for coffee and ready-to-eat meals despite continued pressure from tariffs and elevated input costs.
The Orrville, Ohio-based packaged foods maker now expects adjusted earnings of US$10.50 to US$11.00 per share for fiscal 2027, compared with its previous forecast of US$9.75 to US$10.25. It also expects annual net sales to decline 1% to 2%, improving on its earlier projection of a 3% to 4% decrease.
For the fiscal first quarter ended July 31, J.M. Smucker reported adjusted earnings of US$3.24 per share, exceeding the US$2.22 consensus estimate. Net sales rose 5% year over year to US$2.22 billion, surpassing analysts’ US$2.13 billion expectation, according to LSEG data.
Coffee was the company’s strongest-performing category during the quarter. Coffee segment sales increased 13% to US$807.8 million, driven by brands including Folgers and the packaged coffee business licensed from Dunkin’ Donuts.
The company said net price realization contributed four percentage points to sales growth, reflecting higher coffee prices, while volume and mix added another percentage point. Growth in Uncrustables frozen sandwiches and coffee offset declines in sweet baked goods and peanut butter.
“Our first quarter results exceeded our expectations for both net sales and adjusted earnings per share, demonstrating continued momentum across the Company,” CEO Mark Smucker said.
“Our performance reflects the strength of our differentiated portfolio, disciplined execution against our strategic priorities, and the investments we continue to make in our brands and capabilities,” he added.
J.M. Smucker reported gross profit of $504.9 million for the quarter, including $115 million in tariff-related refunds. The company said adjusted earnings remained at $3.24 per share when excluding the tariff-related refunds, according to the results.
The company is one of the largest coffee roasters and packaged coffee suppliers in the United States. Its coffee portfolio includes Folgers and Café Bustelo, while J.M. Smucker also operates the licensed packaged coffee business for Dunkin’.
The improved fiscal 2027 outlook follows the company’s first-quarter performance, with coffee and frozen sandwiches contributing to revenue growth while higher pricing supported the top line.
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