The J.M. Smucker Co. reported strong growth for its Meow Mix and Milk-Bone brands during an earnings call for its fourth quarter results for the fiscal year ending April 30, 2024.
Mark Smucker, chair of the board, president and CEO, noted that in its pet foods segment, comparable net sales increased double digits versus the prior year. For Meow Mix, supply has significantly improved and net sales grew double digits in the quarter. Milk-Bone continued to drive growth, driven by elevated innovation and continued investment in brand-building.
"Our refocused pet portfolio is performing well from both a sales and margin growth perspective and continues to highlight the benefits of focusing on brands and categories where we have a leading market share position," he said.
In 2023, J.M. Smucker sold several pet food and treat brands to Post Holdings, a consumer-packaged goods holding company. The transaction included the Rachael Ray Nutrish, 9Lives, Kibbles 'n Bits, Nature's Recipe, and Gravy Train brands as well as the Smucker’s private label pet food business.
"In dog snacks and cat food, we grew both dollar and volume share for our category-leading Milk-Bone and Meow Mix brands," said Smucker. "We also continued to build on our successful innovation track record and have an exciting pipeline planned for fiscal 2025."
By the numbers
Tucker Marshall, chief financial officer, noted for its U.S. retail pet foods division, the company reported net sales decreased $332.7 million, or 42%. Excluding $379.2 million of noncomparable net sales in the prior year related to the divested pet food brands, net sales increased $46.5 million, or 11%.
In fourth quarter 2024, volume/mix increased net sales by 8%, primarily driven by $22.7 million of contract manufacturing sales related to the divested pet food brands and increases for the Milk-Bone, Meow Mix, and Pup-Peroni brands. Higher net price realization increased net sales by 3%, primarily reflecting a list price increase for Meow Mix cat food.
"The Meow Mix, Milk-Bone, and Pup-Peroni brands performed well in the quarter growing 11%, 4% and 7%, respectively," Marshall said.
Marshall also noted the pet food segment profit decreased $31.4 million, primarily reflecting the impact of the noncomparable segment profit in the prior year related to the divested brands and increased SD&A expenses, partially offset by lower costs, higher net price realization, and favorable volume/mix.
"Excluding the impact of the divestiture, segment profit increased by a double-digit percentage, primarily driven by lower costs, higher net price realization, and favorable volume/mix," he said.
Smucker said looking ahead, fiscal year 2025 will be a year of investment in its brands, capabilities and employees.
"Our strategy is working and our priorities are clear: deliver our core business, successfully integrate the Hostess business, achieve our synergy aspirations, and advance our transformation and cost discipline activities," Smucker said. "We are confident we are well-positioned to deliver long-term growth and increase shareholder value.
"Our transformed portfolio, including the acquisition of Hostess Brands during the fiscal year, has strengthened our business for long-term profitable growth across our key platforms of coffee, Uncrustables frozen sandwiches, dog snacks and cat food, and sweet baked snacks," he concluded.
According to Petfood Industry's Top Pet Food Companies listing, J.M. Smucker is a leading producer, distributor and marketer of premium-quality, branded pet food and pet snacks in the U.S., Smucker runs processing plants in Decatur, Alabama; Lawrence, Kansas; and Buffalo, New York, U.S. Both a processing plant and distribution center are operated at locations in Topeka, Kansas, U.S., and Bloomsburg, Pennsylvania, U.S. In addition to its own brands, Smucker produces and distributes private-label pet products and utilizes 16 copackers and 12 repackers in the U.S., Canada and Thailand.
