J.M. Smucker Co's quarterly net sales jumped 25 percent, beating analysts' estimates, as demand rose for its Folgers and Dunkin' Donuts branded coffee and the company benefited from the acquisition of pet foods maker Big Heart Pet Brands.
Shares of Smucker, which also makes Jif peanut butter, rose about 4 percent to $138 in light premarket trading on Thursday.
Smucker said its U.S. coffee sales rose 9 percent and profit surged 39 percent in the fourth quarter, mainly due to lower green coffee costs and higher sales of Dunkin' Donuts K-Cup pods.
Last year, Smucker started selling Dunkin' Donuts K-Cup pods, which yield higher margins than packaged coffee.
The biggest U.S. coffee roaster said last month that it would cut prices for its packaged coffee by 6 percent.
ADVERTISEMENT
The company reported net income of $191 million, or $1.61 per share, for the quarter ended April 30. A year earlier, Smucker had a net loss of $90.3 million, or 82 cents per share.
Excluding a deferred tax benefit, Smucker earned $1.44 per share, beating the average analyst estimate of $1.20, according to Thomson Reuters I/B/E/S.
Net sales rose to $1.81 billion, topping the average estimate of $1.75 billion.
Smucker said its U.S. pet foods business, which includes Meow Mix and Milk-Bone pet foods maker Big Heart, accounted for a nearly a third of total sales.
