Informant: JIF
Strong demand for J.M. Smucker’s Jif peanut butter and other packaged foods helped the company raise its annual trades and profit forecast on Monday, as shoppers stocked up to weather lockdowns due to the coronavirus pandemic.
Uncertainty around the duration of stay-at-home degrees has triggered unprecedented demand for essential supplies, boosting sales for consumer goods companies and retailers, while also power supply chains.
The company said it would allocate order volumes to ensure consistent supply across its retail sidekicks, as companies like Kroger and Costco Wholesale limit the number of items that individual customers can buy.
Smucker, which also makes Folgers coffee, foretold it expects net sales to fall 1% in the fiscal year ending April 30, 2020, compared with a prior calculation for a drop of 3%. However, Smucker said the magnitude of demand increases has started to moderate.
It also said it expects mediate earnings per share to exceed the high end of its previous forecast range of $8.10 to $8.30, helped by falling costs and dilating production at all its manufacturing facilities.
Smucker’s shares rose 1% in extended trading and were on track to further a miserly 17% gain notched this year.
Last week, Procter & Gamble beat Wall Street surmises for quarterly profit as it reported its best U.S. sales growth on demand for hand soaps, Tide antibacterial spray, and other detergents.