The J. M. Smucker Company – SJM – Solid start to the fiscal year with growth in volume, sales, and cash flow

The J. M. Smucker Company (NYSE: SJM) announced results for the first quarter ended July 31, 2012, of its 2013 fiscal year.  Results for the quarter ended July 31, 2012, include the operations of the North American foodservice coffee and hot beverage business acquired from Sara Lee Corporation since the completion of the acquisition on January 3, 2012.

• The net sales increase includes the contribution of $86.7 million from the acquired Sara Lee foodservice business.  Volume growth also contributed to the net sales increase in the first quarter of 2013, compared to 2012.
• Operating income excluding the impact of restructuring, merger and integration, and certain pension settlement costs (“special project costs”) increased 6 percent, as the benefit of net price realization and a $15.6 million increase in favorable unrealized mark-to-market adjustment on derivative contracts was somewhat offset by higher commodity costs and selling, distribution, and administrative expenses.
• Net income excluding special project costs increased 1 percent as higher interest expense and an increase in the effective tax rate reduced the operating income increase.
• Net income excluding special project costs per diluted share increased 4 percent, which reflects the benefit from the Company’s share repurchase activities over the past year.

“We are pleased with the solid start to the fiscal year with growth in volume, sales, and cash flow,” commented Richard Smucker, Chief Executive Officer.  ”While the environment remains challenging, we continue to drive long-term growth through brand-building, product innovation, acquisitions, and productivity initiatives while maintaining a healthy balance between volume, market share, and profitability.  Our results demonstrate the strength and resiliency of our iconic brands, our ability to adjust rapidly in the marketplace, and the commitment of our team to our strategy.”

“We remain focused on our long-term strategy and have made tactical adjustments to address challenging market conditions,” commented Vince Byrd, President and Chief Operating Officer.   “We have made significant progress in optimizing price points, closing price gaps, and enhancing merchandising activities at retail.  Consumers continue to respond positively to these actions, to the new products flowing from our robust innovation pipeline, and to the brands we have recently acquired.  We believe we are well-poised for the important back-to-school and holiday seasons and for another successful year of growth.”

About The J. M. Smucker Company – SJM

For more than 110 years, The J. M. Smucker Company (SJM) has been committed to offering consumers quality products that bring families together to share memorable meals and moments.  SJM is a leading marketer and manufacturer of fruit spreads, retail packaged coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk, and health and natural foods beverages in North America.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.