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SJM's Pet Foods Struggles With Dog Snack Weakness and Contract Loss
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Key Takeaways
SJM's Pet Foods sales fell 8% to $368 million in Q1, with profit down 12% to $101.3 million.
Dog snacks' softness and a lost contract manufacturing deal drove the sales and margin declines.
Strength in Away From Home and coffee helped balance Pet Foods' weakness.
The J. M. Smucker Company (SJM - Free Report) started fiscal 2026 with uneven results across its portfolio, with the Pet Foods business standing out as a drag on performance. Once a strong contributor, the segment is battling both category-level challenges and structural changes that weighed on first-quarter fiscal 2026 sales and profit. The company’s latest results underscore the pressures faced by one of the company’s key divisions.
During the quarter, J.M. Smucker’s Pet Foods segment sales fell 8% to $368 million. The volume/mix had an 8-percentage point adverse impact on net sales, while net price realization remained neutral to net sales. The segment’s profit decreased 12% to $101.3 million, and margins contracted 130 basis points to 27.5%.
The company attributed the sales decline primarily to softness in dog snacks and the loss of a contract manufacturing agreement. Dog snacks, in particular, were highlighted as a challenging category, facing both intense competition and sluggish category trends.
Despite these challenges, J.M. Smucker continues to show strength in other parts of its portfolio. The Away From Home segment grew sales and profit in the first quarter, supported by the Uncrustables brand and convenience channels, while coffee remained a stable contributor. These areas provide a balance to Pet Foods’ weakness and signal that the company still has meaningful scope for expansion in fiscal 2026.
J.M. Smucker, which competes with General Mills (GIS - Free Report) , The Kraft Heinz Company (KHC - Free Report) and Mondelez International (MDLZ - Free Report) , anticipates fiscal 2026 net sales to increase in the range of 3-5% and comparable net sales to rise approximately 4.5-6.5%. Fiscal 2026 organic net sales growth for General Mills is projected to range from a 1% decline to a 1% increase. Kraft Heinz expects organic net sales to decline between 1.5% and 3.5% year over year for full-year 2025. Mondelez International envisions organic revenues to grow around 5% in 2025.
While GIS is best known for cereals, snacks, baking products and its Blue Buffalo pet food line, MDLZ’s portfolio includes biscuits, chocolate, gum, and candy brands such as Oreo and Cadbury. Meanwhile, KHC is a multinational food and beverage company that offers condiments, sauces, cheese, and packaged meals under iconic brands like Heinz and Kraft.
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SJM's Pet Foods Struggles With Dog Snack Weakness and Contract Loss
Key Takeaways
The J. M. Smucker Company (SJM - Free Report) started fiscal 2026 with uneven results across its portfolio, with the Pet Foods business standing out as a drag on performance. Once a strong contributor, the segment is battling both category-level challenges and structural changes that weighed on first-quarter fiscal 2026 sales and profit. The company’s latest results underscore the pressures faced by one of the company’s key divisions.
During the quarter, J.M. Smucker’s Pet Foods segment sales fell 8% to $368 million. The volume/mix had an 8-percentage point adverse impact on net sales, while net price realization remained neutral to net sales. The segment’s profit decreased 12% to $101.3 million, and margins contracted 130 basis points to 27.5%.
The company attributed the sales decline primarily to softness in dog snacks and the loss of a contract manufacturing agreement. Dog snacks, in particular, were highlighted as a challenging category, facing both intense competition and sluggish category trends.
Despite these challenges, J.M. Smucker continues to show strength in other parts of its portfolio. The Away From Home segment grew sales and profit in the first quarter, supported by the Uncrustables brand and convenience channels, while coffee remained a stable contributor. These areas provide a balance to Pet Foods’ weakness and signal that the company still has meaningful scope for expansion in fiscal 2026.
J.M. Smucker, which competes with General Mills (GIS - Free Report) , The Kraft Heinz Company (KHC - Free Report) and Mondelez International (MDLZ - Free Report) , anticipates fiscal 2026 net sales to increase in the range of 3-5% and comparable net sales to rise approximately 4.5-6.5%. Fiscal 2026 organic net sales growth for General Mills is projected to range from a 1% decline to a 1% increase. Kraft Heinz expects organic net sales to decline between 1.5% and 3.5% year over year for full-year 2025. Mondelez International envisions organic revenues to grow around 5% in 2025.
While GIS is best known for cereals, snacks, baking products and its Blue Buffalo pet food line, MDLZ’s portfolio includes biscuits, chocolate, gum, and candy brands such as Oreo and Cadbury. Meanwhile, KHC is a multinational food and beverage company that offers condiments, sauces, cheese, and packaged meals under iconic brands like Heinz and Kraft.