Shares of JM Smucker Co. (NYSE: SJM) plummeted 15% on Tuesday after the company delivered mixed results in the fourth quarter of 2025. Branded food providers forecast dynamic operating environments for fiscal year 2026, with potential impacts from tariffs, inflation and changes in consumer behavior.
Mixed results
In the fourth quarter of 2025, JM Smucker net sales fell 3% year-on-year to $2.14 billion, missing an estimate of $2.19 billion. On a GAAP basis, we reported a net loss of $6.85 per share. Adjusted earnings per share fell 13% to $2.31, while analysts forecasted at $2.25.
Business Performance
In the fourth quarter, coffee segment sales rose 11%. Folger and Cafe Bastello brand. SJM continues to see green coffee inflation and is working on implementing it for another two years this year after rolling out two price increases in fiscal year last year. As a result, price elasticity is expected for the impact of demand on volume. The company also expects continued resilience in the home coffee category.
Sales in frozen handhelds remained flat, and segments expanded, Fraud Sandwich brands continue to grow Smacker The fruit spreads, Jifu Peanut butter has declined. Sales of the pet food segment fell by 13% with pressure in the dog snack category, caused by discretionary spending and lower inflationary pressures. SJM continues to see the growth of the cat food category Meow Mix brand.
The sweet baked snack segment will continue to be affected by inflationary pressures and reduced discretionary spending, along with weaker convenience channels. Sales for this segment fell 26% in the fourth quarter.
SJM continues to focus resources Uncrustables, Café Bustelo, Meow-Mix, Milk Boneand hostessseeing the greatest opportunity for growth. Fraud The brand continues to gain strong momentum due to product innovation and increased production. The company plans to expand the brand into convenience channels to drive further growth. Fraud The brand is expected to generate more than $1 billion in revenue by the end of fiscal year 2026.
Cafe Bastello The brand is one of the fastest growing brands in the home coffee category and benefits from product innovation. The company expects double-digit sales growth for the brand next year. Meow-Mix and Milk bones The brand is expected to benefit from product innovation and the trends in humanizing pets.
Outlook
Looking forward to fiscal year 2026, JM Smucker expects a dynamic operational environment that is affected by tariffs, green coffee costs, policy changes and customers seeking values. The company expects a sales growth rate of 3.5-5.5%, comparable to net sales of 2-4% in 201026. SJM expects Green Coffee to have the highest impact from tariffs. The adjusted EPS is expected to be between $8.50 and $9.50.
In the first quarter of 2026, net sales are expected to decline in lower digits, comparable sales are expected to remain flat, with adjusted EPS expected to fall approximately. twenty five%.
