J.M. Smucker Fiscal Q3 Report 2023

Net Sales

Net sales increased 8 percent. Excluding noncomparable net sales in the prior year of$45.5 million from the divested natural beverage and grains and private label dry pet food businesses, as well as $7.2 million of unfavorable foreign currency exchange, net sales increased $211.9 million, or 11 percent. The increase in comparable net sales was driven  by a 15 percentage point increase from net price realization, primarily reflecting list price increases for each of the Company’s U.S. Retail segments and for International and Away from Home, partially offset by a 4 percentage
point decrease from volume/mix primarily driven by the U.S. Retail Coffee segment.

Operating Income

Gross profit increased $72.7 million, or 11 percent. The increase reflects a favorable net impact of higher net price realization and increased commodity and ingredient, manufacturing, and packaging costs, inclusive of costs related to a voluntary recall of Jif® peanut butter products in May 2022, partially offset by a reduced contribution from volume/mix and the noncomparable impact of the divested natural beverage and grains businesses. Operating income increased $167.3 million, or 111 percent, primarily reflecting the increase in gross profit and lapping of a $150.4 million intangible asset impairment charge in the prior year, partially offset by a$44.9 million increase in selling, distribution, and administrative (“SD&A”) expenses.