The J.M. Smucker Co. reported first-quarter fiscal 2027 adjusted earnings per share of $3.24, up 71% from a year earlier and exceeding Wall Street’s consensus estimate of $2.21 by $1.03. Net sales totaled $2.2 billion, a 5% increase year-over-year and $80 million above the $2.12 billion forecast. The company attributed the beat to tariff refunds of $115 million, which contributed $0.84 to adjusted EPS, and continued pricing power across its portfolio.
Adjusted gross profit rose by $207 million, or 28%, while adjusted gross margin expanded by 760 basis points year-over-year. Adjusted operating income climbed 46% to $460 million, driven by volume growth in key brands and disciplined cost management. Free cash flow improved to $337 million from a negative $95 million in the prior-year period, and the company reduced net debt by approximately $230 million, lowering its net debt-to-EBITDA leverage ratio to 2.9 times.
Brand performance showed broad-based strength, with coffee sales up 13% as Dunkin’ and Café Bustelo gained share. Café Bustelo, now the sixth-largest at-home coffee brand, posted a 23% net sales increase, including an 8% contribution from volume mix. Uncrustables delivered 12% net sales growth, with household penetration reaching 27%, while pet foods saw a 1% rise led by double-digit growth in Milk-Bone soft and chewy snacks. Sweet baked snacks declined 7% due to channel weakness, though Hostess Donettes grew double digits.
For the full fiscal year 2027, Smucker raised its adjusted EPS guidance to a range of $10.50 to $11, an increase of $0.75 at the midpoint. Net sales are now expected to decline 1% to 2%, reflecting lower net price realization as green coffee deflation is passed through to consumers. Free cash flow guidance was increased to about $1.1 billion, up $100 million from prior estimates. Capital expenditures are projected at $325 million, with at least $500 million of debt repayment planned for the year.
Second-quarter net sales are forecast to fall 3% to 4%, while adjusted EPS is expected to rise in the low 20% range. The company’s stock rose 4.48% in premarket trading to $131.07, surpassing its 52-week high of $127.64.
