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3w ago

Tariffs Weigh on Smucker Coffee With Q1 Loss and Stock Slide

A 50% levy on some Brazilian imports has pushed up input costs, compressing coffee margins.

Packs of Pilon and Dunkin' coffee, brands owned by The J.M. Smucker Company, are seen for sale in a store in Manhattan, New York City, U.S., November 22, 2021. REUTERS/Andrew Kelly/File Photo
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Overview

  • Profit in the U.S. retail coffee division fell 22% as higher commodity costs and marketing spend outpaced price increases.
  • Coffee unit sales rose 15% to $717.2 million after price hikes, but the pass-through did not fully offset tariff-driven costs.
  • Smucker posted a GAAP net loss of $0.41 per share and revenue of $2.11 billion, missing profit estimates as cost of products sold climbed 23% to $1.64 billion.
  • Adjusted EPS came in at $1.90 versus a $1.93 LSEG consensus, while the company raised full-year net sales growth guidance to 3%–5% and reaffirmed adjusted EPS of $8.50–$9.50.
  • Management said more retail price increases are planned in early winter tied to the higher tariff rates, and shares fell roughly 5%–7% following the results.