Seeking Alpha

J. M. Smucker Company (SJM)

  • Wed, Feb. 4, 12:03 PM
    • FreshPet (FRPT +1.6%) and PetSmart (PETM +0.1%) trade higher following J.M. Smucker's (SJM +5.3%) entry into the pet food business through an acquisition of Big Heart Pet Brands.
    • The product category has shown stronger demand from consumers than anticipated by analysts.
    • PetSmart etched out an all-time high today of $82.53 - just off its buyout price of $83.
    • Though FreshPet is off its IPO highs, the stock trades at a much higher sales multiple than what J.M. Smucker shelled out last night.
    | 1 Comment
  • Wed, Feb. 4, 9:13 AM
  • Tue, Feb. 3, 4:57 PM
    • J.M. Smucker (NYSE:SJM) is acquiring Big Heart Pet Brands from its P-E owners for 17.9M shares, $1.3B in cash, and $2.6B in debt that will be refinanced (total consideration of $5.8B). For reference, Smucker closed today with a $10.7B market cap.
    • Big Heart, known as Del Monte before unloading its consumer products ops, owns the Meow Mix, Kibbles 'n Bits, Milk-Bone, and Natural Balance pet food brands, among others.
    • The deal is expected to close by the end of Big Heart's FY15 (ends on May 3). Following its closing Big Heart CEO Dave West will serve as the the president of Smucker's pet food ops.
    • Smucker has risen to $110.75 in AH trading, making new 52-week highs along the way.
  • Fri, Jan. 23, 12:41 PM
    • Companies selling coffee perked up their ears after Starbucks said it saw strong single-serve and packaged coffee sales during its most recent quarter and took market share.
    • Grocery store analysts have noted the aggressive positioning of Starbucks products in many chains over the last six months.
    • SBUX FQ1 report, SBUX earnings call.
    • On watch: Keurig Green Mountain (NASDAQ:GMCR), Dunkin' Brands (NASDAQ:DNKN), Kraft Foods (NASDAQ:KRFT), J.M. Smucker (NYSE:SJM), TreeHouse Foods (NYSE:THS).
    | 1 Comment
  • Sat, Jan. 17, 12:45 PM
    • Milk prices are in a downward trend with an excess of supply on the international market.
    • The supply is so far beyond expectations that some U.S. cooperatives have directed farms to pour out part of their inventory.
    • A reduced level of milk imports from China and Russia has been a factor in the market.
    • Food companies are seeing a quicker benefit from the milk price decline than consumers, although analysts anticipate lower prices at grocery and C-stores stores in 2015.
    • Milk price data (consumers) vs. milk futures chart
    • Related ETFs: MOO.
  • Fri, Jan. 16, 5:19 PM
    • J. M. Smucker (NYSE:SJM) declares $0.64/share quarterly dividend, in line with previous.
    • Forward yield 2.51%
    • Payable March 2; for shareholders of record Feb. 13; ex-div Feb. 11.
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  • Dec. 10, 2014, 5:43 PM
    • Citing "sustained increases in costs," J.M. Smucker (NYSE:SJM) is "increasing the list price on its K-Cup packs sold in the United States under the Folgers, Folgers Gourmet Selections, Cafe Bustelo, and Millstone brand names" by an average of 8%. The hikes go into effect on Jan. 5.
    • SJM, along with Starbucks, is one of  Keurig Green Mountain's (NASDAQ:GMCR) biggest K-Cup licensees.  In May, Keurig and SJM expanded their partnership to cover new Keurig brewers.
    | 1 Comment
  • Nov. 24, 2014, 3:43 PM
    • Twenty-two spinoffs have been completed in 2014, the most in a decade, and another 28 have been announced. Among the catalysts are activist investors, so Credit Suisse screened for companies with multiple business segments, slow growth, and stocks trading for lower multiples than peers, in other words, "good, quality companies that are struggling to grow."
    • The list is heavy on big media names like Time Warner (NYSE:TWX) and Twenty-First Century Fox (NASDAQ:FOXA), big tech like Oracle (NYSE:ORCL), Symantec (NASDAQ:SYMC), and IBM, and big industry like Lockheed Martin (NYSE:LMT), Ingersoll-Rand (NYSE:IR), and Raytheon (NYSE:RTN), but just two financial names - Travelers (NYSE:TRV) and Torchmark (NYSE:TMK).
  • Nov. 19, 2014, 9:28 AM
    • J. M. Smucker (NYSE:SJM) reports U.S. Retail Coffee sales fell 10.41% to $533M due to 18.0% drop in volume.
    • U.S. Retail Consumer Foods sales -1.24% to $605M reflecting lower net price realization.
    • International, Foodservice and Natural Foods sales declined -2.44% to $343.8M and volume -3.0%.
    • Gross profit rate -80 bps to 36.2%, driven by lower volume and unfavourable mix.
    • Segment Profit: U.S. Retail Coffee: $151.2M (-16.28%); U.S. Retail Consumer Foods: $117M (+17.18%); International, Foodservice and Natural Foods: $45.2M (-4.64%).
    • Operating margin -10 bps to 16.8%.
    • The company expects a modest increase in net sales for 2HFY2015.
    • FY2015 Guidance: Net sales growth -1.0%; EPS: $5.45 to $5.65; Free cash flow: ~$500M.
    • FQ2 results
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  • Nov. 19, 2014, 7:04 AM
    • J. M. Smucker (NYSE:SJM): FQ2 EPS of $1.53 in-line.
    • Revenue of $1.48B (-5.1% Y/Y) misses by $10M.
    • Press Release
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  • Nov. 18, 2014, 5:30 PM
  • Nov. 12, 2014, 8:23 AM
    • J.M. Smucker (NYSE:SJM) announces that it expects FQ2 sales to show a 5% decline.
    • The company's results were impacted by weak demand in the U.S. Retail Coffee segment - particularly with the Folgers brand which had a price increase pushed through earlier this year.
    • The coffee sales slowdown coincides with higher input costs for green coffee.
    • Guidance: FY15 sales growth of -1% forecast vs. a prior outlook for a 3% to 4% increase.
    • SJM -4.7% premarket.
  • Oct. 17, 2014, 5:31 PM
    • In addition to declaring its quarterly dividend, J.M. Smucker (NYSE:SJM) has doubled the number of shares available for repurchase through its buyback to 10M, or nearly 10% of outstanding shares.
    • In its August FQ1 report, the food giant mentioned buybacks had lowered its share count by 4% over the prior year.
    • SJM +1.4% AH.
    | Comment!
  • Oct. 17, 2014, 5:18 PM
    • J. M. Smucker (NYSE:SJM) declares $0.64/share quarterly dividend, in line with previous.
    • Forward yield 2.59%.
    • Payable Dec. 1; for shareholders of record Nov. 14; ex-div Nov. 12.
    | Comment!
  • Oct. 2, 2014, 1:10 PM
    • Arabica coffee futures reached a five-month high as a prolonged drought in Brazil now appears likely to impact next year's crop as well as this year's.
    • Coffee watcher ICO estimates a 10M production bag deficit could result due to the weak crop amid an environment of rising global demand.
    • Arabica coffee chart
    • Related stocks: GMCR, SBUX, JVA, SJM, KRFT, DNKN
    • Related ETFs: JO
    | Comment!
  • Aug. 26, 2014, 3:57 PM
    • Brazil coffee production could end up down 18% Y/Y when the harvest ends next month. A severe drought in the nation has destroyed a large swath of crops.
    • The shortfall in the nation is included in a forecast from Citigroup that calls for a global coffee deficit which could last until 2016 and pressure prices.
    • Related stocks: GMCR, SBUX, JVA, SJM, KRFT, DNKN
    • Related ETFs: JO
    | 1 Comment
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Company Description
JM Smucker Co manufactures and markets branded food products on a worldwide basis, although the majority of its sales are in the U.S.