From Yahoo Finance: 2025-06-11 07:48:00

JM Smucker will raise coffee prices in August due to green coffee inflation. CEO Mark Smucker announced the decision after a price increase in May. Sales in the US Retail Coffee business rose 11% in the fourth quarter of fiscal 2025. However, the segment’s profit margin decreased due to commodity cost inflation. Overall, JM Smucker reported a net loss of $729m in Q4 FY2025 and a $1.23bn loss for the full year. Adjusted EPS for Q4 was $2.31, down from $2.66 in the previous year.

JM Smucker’s operating loss was driven by non-cash impairment charges in its snacks business. Fourth-quarter net sales decreased by 3% to $2.14bn. Adjusted operating income declined by 8%, and adjusted EPS dropped to $2.31. For the full year, net sales rose 7% to $8.72bn, with an operating loss of $673.9m. Adjusted operating income increased by 12%, and adjusted EPS rose to $10.12. The company expects net sales to grow 2-4% in fiscal 2026, with adjusted EPS between $8.50 and $9.50.

Analyst Alexia Howard noted that coffee is facing input cost pressures, and it’s uncertain if historical price elasticities will hold. JM Smucker’s outlook for fiscal 2026 is below consensus on the bottom line but better on sales guidance due to price hikes. Concerns include pressure on the Hostess brand and potential sales impact from reduced funding and media scrutiny. Price elasticity in at-home coffee consumption will be monitored closely.



Read more at Yahoo Finance: JM Smucker readies another coffee price hike