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The J.M. Smucker (SJM) Looks Enticing on Strategic Excellence
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The J. M. Smucker Company (SJM - Free Report) is well-positioned to sustain its growth trajectory. The company’s diverse brand portfolio, effective pricing strategies and operational efficiencies have been working well. Sustained demand across brands and categories also keeps this food and beverage product company in good shape.
Core Strategies Aid
The J. M. Smucker’s strategic focus remains centered on core priorities, including driving commercial excellence, reshaping its portfolio, streamlining costs and leveraging organizational strengths. These strategies have not only enhanced in-store fundamentals but also bolstered brand performance. The company has been proactive in implementing inflation-justified pricing actions across all business segments.
Additionally, SJM is channeling resources to fuel sustainable growth in the pet food, coffee and snacking categories. Supply chain optimization and cost reduction initiatives further underline the company’s commitment to operational efficiency.
Image Source: Zacks Investment Research
Focus on Reshaping Portfolio
The J. M. Smucker's strategic portfolio reshaping through prudent acquisitions and divestitures has been pivotal. Recent moves in this regard include the acquisition of Hostess Brands, which is expected to contribute approximately $650 million to fiscal 2024 sales. The company’s historical acquisitions, such as Ainsworth and Big Heart Pet Brand, have reinforced its market presence and diversified its product range.
On the flip side, The J. M. Smucker divested the Canadian condiments business in January 2024 and Sahale Snacks in November 2023. These moves help the company focus its resources and portfolio on the pet food, snacking and coffee categories. Apart from this, partnerships with coffee giants like JDE Peet’s, Keurig Green Mountain (KGM) and Dunkin’ Brands Group further exemplify SJM’s strategic foresight.
Pricing, a Key Upside
The J. M. Smucker has demonstrated robust performance, driven by effective net price realization strategies across its diverse portfolio. In the third quarter of fiscal 2024, net price realization increased by 2%, significantly boosting comparable net sales. This upward pricing trend was particularly impactful in the U.S. Retail Pet Foods segment, where it contributed a seven-percentage-point boost to net sales. Similarly, the U.S. Retail Frozen Handheld and Spreads and the International and Away From Home units saw positive impacts of 5% and 4%, respectively.
For fiscal 2024, the company anticipates comparable net sales to rise 8.75% on elevated net pricing and a favorable volume/mix. Fourth-quarter comparable sales are expected to increase in the mid-single digits.
Wrapping Up
The J. M. Smucker is likely to keep up with its robust performance, thanks to its brand strength and pricing strategies. The integration of Hostess Brands is anticipated to enhance distribution capabilities and yield substantial cost synergies, contributing to long-term growth. Despite a dynamic consumer landscape and high SD&A costs, Smucker’s strategic initiatives and financial discipline underscore a promising future.
Shares of this Zacks Rank #2 (Buy) company have risen 0.9% in the past six months compared with the industry’s growth of 7.1%.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers.
Ingredion Incorporated (INGR - Free Report) , which manufactures and sells sweeteners, starches, nutrition ingredients and biomaterial solutions, currently carries a Zacks Rank #2. INGR has a trailing three-quarter earnings surprise of 10.1%, on average.
The Zacks Consensus Estimate for Ingredion Incorporated’s current fiscal year earnings indicates growth of 2.7% from the year-ago reported figure.
Utz Brands Inc. (UTZ - Free Report) manufactures a diverse portfolio of salty snacks and currently carries a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 24.6% from the year-ago reported numbers.
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The J.M. Smucker (SJM) Looks Enticing on Strategic Excellence
The J. M. Smucker Company (SJM - Free Report) is well-positioned to sustain its growth trajectory. The company’s diverse brand portfolio, effective pricing strategies and operational efficiencies have been working well. Sustained demand across brands and categories also keeps this food and beverage product company in good shape.
Core Strategies Aid
The J. M. Smucker’s strategic focus remains centered on core priorities, including driving commercial excellence, reshaping its portfolio, streamlining costs and leveraging organizational strengths. These strategies have not only enhanced in-store fundamentals but also bolstered brand performance. The company has been proactive in implementing inflation-justified pricing actions across all business segments.
Additionally, SJM is channeling resources to fuel sustainable growth in the pet food, coffee and snacking categories. Supply chain optimization and cost reduction initiatives further underline the company’s commitment to operational efficiency.
Image Source: Zacks Investment Research
Focus on Reshaping Portfolio
The J. M. Smucker's strategic portfolio reshaping through prudent acquisitions and divestitures has been pivotal. Recent moves in this regard include the acquisition of Hostess Brands, which is expected to contribute approximately $650 million to fiscal 2024 sales. The company’s historical acquisitions, such as Ainsworth and Big Heart Pet Brand, have reinforced its market presence and diversified its product range.
On the flip side, The J. M. Smucker divested the Canadian condiments business in January 2024 and Sahale Snacks in November 2023. These moves help the company focus its resources and portfolio on the pet food, snacking and coffee categories. Apart from this, partnerships with coffee giants like JDE Peet’s, Keurig Green Mountain (KGM) and Dunkin’ Brands Group further exemplify SJM’s strategic foresight.
Pricing, a Key Upside
The J. M. Smucker has demonstrated robust performance, driven by effective net price realization strategies across its diverse portfolio. In the third quarter of fiscal 2024, net price realization increased by 2%, significantly boosting comparable net sales. This upward pricing trend was particularly impactful in the U.S. Retail Pet Foods segment, where it contributed a seven-percentage-point boost to net sales. Similarly, the U.S. Retail Frozen Handheld and Spreads and the International and Away From Home units saw positive impacts of 5% and 4%, respectively.
For fiscal 2024, the company anticipates comparable net sales to rise 8.75% on elevated net pricing and a favorable volume/mix. Fourth-quarter comparable sales are expected to increase in the mid-single digits.
Wrapping Up
The J. M. Smucker is likely to keep up with its robust performance, thanks to its brand strength and pricing strategies. The integration of Hostess Brands is anticipated to enhance distribution capabilities and yield substantial cost synergies, contributing to long-term growth. Despite a dynamic consumer landscape and high SD&A costs, Smucker’s strategic initiatives and financial discipline underscore a promising future.
Shares of this Zacks Rank #2 (Buy) company have risen 0.9% in the past six months compared with the industry’s growth of 7.1%.
3 Other Appetizing Bets
Vital Farms Inc. (VITL - Free Report) offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers.
Ingredion Incorporated (INGR - Free Report) , which manufactures and sells sweeteners, starches, nutrition ingredients and biomaterial solutions, currently carries a Zacks Rank #2. INGR has a trailing three-quarter earnings surprise of 10.1%, on average.
The Zacks Consensus Estimate for Ingredion Incorporated’s current fiscal year earnings indicates growth of 2.7% from the year-ago reported figure.
Utz Brands Inc. (UTZ - Free Report) manufactures a diverse portfolio of salty snacks and currently carries a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 24.6% from the year-ago reported numbers.