The J. M. Smucker Company (SJM) Q2 Earnings call transcript Nov 26, 2025

The J.M. Smucker Company held its fiscal 2025 second quarter earnings call, providing insights into its financial performance and future outlook. The call, led by Crystal Beiting, Vice President of Investor Relations and Financial Planning and Analysis, featured presentations from Mark Smucker, Chair of the Board, President, and CEO, and Tucker Marshall, Chief Financial Officer.

Financial Performance and Outlook

The company reported a strong second quarter, with solid momentum continuing into the back half of the fiscal year. However, there are challenges ahead, particularly in the coffee and pet segments. Sales growth for coffee is expected to be flat in the third quarter, with the pet portfolio seeing reduced co-manufacturing sales and discretionary nature of pet treating. The company is also seeing declines in the Hostess brand, with expectations for a low single-digit year-over-year decline in the second half.

Hostess and Synergies

Mark Smucker highlighted the challenges faced by the Hostess brand, with issues related to consumer cautiousness and execution. To address these challenges, the company is planning to improve execution across the portfolio, expand distribution at shelf, launch a marketing campaign in the new year, and refresh packaging and innovate. The company remains confident in the brand's long-term potential, citing positive snacking trends and the continued relevance of indulgent snacking.

Coffee and Pricing

Coffee prices have been a significant concern, with the commodity reaching new highs. The company has taken two rounds of pricing to mitigate the impact of inflation, but the market remains volatile due to financial speculation. The company will continue to pass along cost changes and manage the coffee business responsibly, balancing consumer affordability with the need to maintain profitability.

Pet Food and Innovation

The pet food segment continues to perform well, with Milk-Bone remaining a bright spot. The company is focusing on innovation to drive sales, particularly in the peanut buttery bites, which have been performing exceptionally well. The company is also looking at refreshing the brand and emphasizing product quality to maintain consumer loyalty.

Investment and Growth Opportunities

The company is investing in Uncrustables, which is exceeding expectations and is expected to meet or exceed the $1 billion mark in 2026. The company is also exploring opportunities in the GLP-1 weight loss drug market, recognizing the potential impact of these drugs on consumer needs and diet trends.

Conclusion

The J.M. Smucker Company's earnings call provided a comprehensive overview of its financial performance and strategic direction. Despite challenges in certain segments, the company remains optimistic about its future prospects, particularly in areas of innovation and growth. With a focus on execution and strategic investments, the company is well-positioned to navigate the evolving market dynamics and capitalize on opportunities for growth.