J.M. Smucker’s topped analysts’ foresees for second-quarter sales and profit, as it sold more pet food products and allowanced from price hikes for Jif peanut butter and other consumer mentions.
Smucker’s shares, which have fallen 17 percent this year, get ahead 4 percent in premarket trading on Thursday.
Net sales in its pet foods business, Smucker’s biggest, mount rebel 4 percent in the quarter ended Oct. 31, driven by demand for brands covering Nature’s Recipe and Meow Mix.
Sales in the business, which has faced impassioned competition from rival pet food makers, were “very hard-wearing” and the highest organically in years, said JPMorgan analyst Ken Goldman.
Smucker’s bigger rivals take ining Mars, which sells Pedigree and Whiskas, and Nestle, whose biggest pet brand is Purina, have been spending heavily to build out their pet bread divisions.
While sales in Smucker’s consumer foods business strike down 5 percent, price increases for Jif and the company’s namesake brand helped zeal profit about 10 percent higher.
However, earnings in its large-hearted coffee business declined 18 percent despite an increase in yard sales, bruised by rising costs to buy green coffee.
Smucker, the biggest U.S. coffee roaster, has set up it difficult to raise prices for its coffee brands to keep up with react to green coffee prices.
The Orrville, Ohio-based company was forced to reduce its coffee prices earlier this year after a prior evaluation hike hit demand.
Smucker’s net income rose 10 percent to $194.6 million in the blemished quarter. Excluding one-time items, the company earned $2.02 per deal, beating analysts’ average estimate of $1.90, according to Thomson Reuters I/B/E/S.
Net trades rose slightly to $1.92 billion and topped analysts’ expectations of $1.89 billion.
Smucker said it now look forwards yearly net sales to be flat or down slightly, compared with an earlier prophesy for sales to fall.