SJM Q2 FY25

As of October 31, 2024, JM Smucker's total operating revenue was US$2.271 billion, up approximately 11.97% from US$1.939 billion as of October 31, 2023. This indicates an improvement in the company's performance in terms of revenue, reflecting an increase in market demand and enhanced sales capabilities.

## Key Data Analysis of Financial Report

1. Increased Market Demand: The growth in operating revenue may be attributed to the increased demand for JM Smucker's products, particularly in the food and consumer goods industry, where changes in consumer preferences could have driven the company's sales growth.

2. Optimized Product Portfolio: The company launched new products in 2024, including coffee, peanut butter, frozen foods, and acquired Hostess Brands, enriching its product portfolio, which attracted more consumers and increased sales source.

3. Improved Marketing Strategy: JM Smucker restructured its marketing strategy in 2024, implementing a dual pricing system and a full-channel layout, enhancing brand awareness, and promoting sales growth source.

4. Channel Expansion: The company may have expanded its sales channels, including online sales and the application of new retail models, increasing the coverage of sales.

5. Economic Environment: The overall improvement in the economic environment, despite low consumer confidence, is expected to promote a rebound in consumption, contributing to the company's revenue growth source.

# Industry Comparison Analysis

## 1. Industry-wide Analysis

The food and consumer goods industry generally experienced a recovery in demand in the past year, especially after the pandemic, with a significant increase in consumer demand for food and everyday consumer goods. The growth trend in total operating revenue indicates intensified competition, requiring companies to innovate to maintain growth.

## 2. Peer Evaluation Analysis

JM Smucker's revenue growth rate of approximately 11.97% is comparable to the average growth rate of 10% to 12% among industry peers. This suggests that JM Smucker maintains a competitive growth level in the industry, possibly with an increase in market share and brand influence.

# Conclusion

JM Smucker's revenue growth in 2024 reflects successful adjustments in market demand, product portfolio, and marketing strategy. Despite economic challenges, the company's proactive measures have led to significant revenue growth.

# Opportunities

1. New Product Launch: The launch of new products in multiple categories (e.g., coffee, frozen foods) by JM Smucker is expected to attract more consumers and drive further sales growth.

2. Market Share Expansion: Through the acquisition of Hostess Brands, JM Smucker can quickly expand its product line and market share.

3. Optimized Marketing Strategy: Targeted marketing strategies and full-channel layouts in response to market demand will enhance brand competitiveness and improve sales efficiency.

4. Economic Policy Support: As the consumer market gradually recovers, government policy support is expected to further boost consumer demand, providing a favorable development environment for JM Smucker.

# Risks

1. Low Consumer Confidence: Although the company's revenue growth, the overall consumer market performance is weak, and low consumer confidence may affect future sales performance.

2. Intensified Competition: The food and consumer goods industry is highly competitive, and the innovation and market strategies of other brands may pose a threat to JM Smucker's market share.

3. Economic Environment Uncertainty: Slow economic recovery may continue to put pressure on the consumer goods industry, and companies need to be cautious in their response.

4. Cost Increase Risk: The rise in raw material prices and increased production costs may affect the company's profit margin, and cost control strategies need to be continuously monitored.