Smucker Reports Q3 Disappointment, $794 Mln Impairment Charge

• Pomerantz LLP investigating Smucker investors for potential securities fraud. • Transaction to acquire Hostess Brands closed in November 2023 for $5.5 billion. • Q3 2025 results announced on February 27, 2025, with 8% net sales decrease in Sweet Baked Snacks. • $794 million impairment charge to Sweet Baked Snacks segment goodwill. • $208 million impairment charge to Hostess Brand trademarks.

Investors in The J.M. Smucker Company (NYSE: SJM) are under scrutiny following the latest financial results and a series of impairment charges related to the acquisition of Hostess Brands. The national shareholder rights firm Pomerantz LLP has announced an investigation into whether SJM may have violated securities laws.

The investigation focuses on whether the company issued false or misleading statements regarding the benefits of the Hostess Brands acquisition. The acquisition, which closed in November 2023 for approximately $5.5 billion, was initially expected to drive sustainable growth. However, the company's recent financial performance has fallen short of expectations.

On February 27, 2025, SJM reported Q3 2025 results, including a 8% net sales decrease in the Sweet Baked Snacks segment. The company also announced a $794 million impairment charge related to the goodwill of the Sweet Baked Snacks segment and a $208 million impairment charge to the Hostess Brand trademark. These charges, totaling approximately 20% of the Hostess acquisition price, have raised concerns among investors.

Following the announcement, shares of SJM fell by more than 15%, wiping out around $1.8 billion of shareholder value. The company has since revised its full-year 2026 financial outlook, reflecting decreased net sales in the Sweet Baked Snacks segment.

Pomerantz LLP urges SJM investors who have suffered substantial losses to submit their losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys. For more information, visit [1] www.hbsslaw.com/investor-fraud/sjm or contact Reed Kathrein at 844-916-0895.

References:
[1] https://www.globenewswire.com/news-release/2025/08/26/3139650/32716/en/The-J-M-Smucker-Company-SJM-Faces-Investor-Scrutiny-After-Announcing-The-Second-Hostess-Related-Impairments-In-About-3-Months-Hagens-Berman.html