The J.M. Smucker Co. reported first-quarter fiscal 2027 adjusted earnings per share of $3.24, a 71% increase from the prior-year period and $1.03 above analyst expectations. The company attributed the outperformance to approximately $115 million in tariff refunds, which boosted adjusted gross profit by 28% to $950.2 million and expanded operating margins by 690 basis points to 24.4%.
Net sales rose 5% year-over-year to $2.22 billion, exceeding forecasts by 3.8%. U.S. Retail Coffee segment sales grew 13% to $807.8 million, driven by a 1,840-basis-point margin expansion to 37.1%, while U.S. Retail Frozen Handheld and Spreads sales increased 3% to $499.3 million, with Uncrustables brand volume reaching record levels. Pet Foods generated $371.7 million in sales and $98.9 million in segment profit. Sweet Baked Snacks sales declined 7%, reflecting weaker convenience store traffic and competitive pressures.
Free cash flow turned positive at $337.3 million, compared with a negative $94.9 million in the prior-year period, while total gross debt decreased to $6.74 billion. The company raised its full-year fiscal 2027 adjusted EPS guidance to a range of $10.50 to $11.00, up from $9.75 to $10.25, citing continued tariff refund benefits and disciplined cost management. Full-year net sales are now expected to decline 1.0% to 2.0%, an improvement from the prior guidance of a 3.0% to 4.0% decrease.
Chief Executive Mark Smucker highlighted the company’s "differentiated portfolio" and operational discipline as key drivers of the results. The company also maintained its capital expenditure plan at $325 million and reaffirmed plans to reduce debt by at least $500 million during the fiscal year.
