ORRVILLE, OHIO — Higher ingredient costs were partly to blame for a 15% decrease in income at The J.M. Smucker Co. during the second quarter.
For the quarter ended Oct. 31, the company had income of $127,247,000, equal to $1.12 per share on the common stock, which compared with income of $149,726,000, or $1.25 per share, during the same quarter of the previous year. Sales for the quarter were $1,513,905,000, up 18% from $1,278,913,000.
“We delivered record sales growth in the quarter, including robust contributions from product innovation such as our K-Cups and seasonal offerings,” said Richard Smucker, chief executive officer. “As we head into the key holiday period, our strong leading brands are trusted and remain well positioned to meet the varying needs of our consumers, including helping to bring their families together to share memorable meals and moments. Additionally, we are effectively managing this period of significant cost inflation, where our cost of goods sold increased approximately 30% for the quarter, yet we posted gross profit growth. As always, our focus remains on effectively managing the balance between volume, market share, and profitability while continuing to invest in our brands.”
For the six months ended Oct. 31, the company had income of $238,770,000, or $2.09 per share, down 5% from $252,607,000, or $2.12 per share, during the same period of the previous year. Sales for the quarter were $2,702,788,000, up 16% from $2,326,225,000.
The company said it now expects its full-year 2012 guidance to be in the range of $4.90 to $5.00, excluding special project costs.