J.M. Smucker Co., maker of jams, jellies and Jif peanut butter, said Friday its fiscal first-quarter profit more than doubled, mostly on increased sales from last year’s Folgers acquisition.
Orrville, Ohio-based Smucker also backed its yearly outlook and said earnings will fall at the higher end of its forecast.
Smucker said it earned $98.1 million, or 83 cents per share, in the three months ended July 31. That’s up from $42.3 million, or 77 cents per share, a year ago.
Excluding restructuring, acquisition and integration costs of 9 cents per share, Smucker says profit was 92 cents per share, well above analysts’ estimates of 80 cents a share. The estimates typically exclude one-time items.
Revenue jumped 58 percent to $1.05 billion from $663.7 million, mostly because of Folgers. Analysts polled by Thomson Reuters expected $1.04 billion.
Expansion of the Dunkin’ Donuts brand boosted volume in its U.S. retail coffee market unit, while demand for Jif peanut butter, Smucker’s fruit spreads and Hungry Jack pancakes and syrups lifted volume in Smucker’s U.S. retail consumer market segment.
Merger and integration costs rose sharply to $16.5 million from $3.4 million a year ago.
Looking ahead, the company affirmed its yearly outlook for earnings between $3.65 and $3.80, excluding merger and integration costs between 17 cents and 19 cents per share. Analysts expect $3.76 per share in profit.
Smucker expects revenue around $4.5 billion, and analysts predict $4.55 billion.
