J.M. Smucker’s pet food business demonstrated resilience in the first quarter of fiscal 2027, withstanding overall profit pressures. The U.S. retail pet food segment generated $371.7 million (€319.7M) in net sales, climbing 1% year-over-year (YoY), buoyed by increased cat food sales and a return to volume growth in the dog segment.
Despite the sales increase, segment profit dipped 2% to $98.9 million (€85.1M) due to raised costs and increased marketing spend. This was partially offset by tariff refunds and favorable volume/mix. The rise in net sales was supported by a 1-percentage-point contribution from volume/mix, primarily driven by higher cat food sales, though partially offset by a decline in dog snacks.
The Meow Mix brand, a category leader, delivered 4% net sales growth, benefiting from a growing cat population fueled by younger generations of pet parents. In the dog segment, Milk-Bone returned to volume growth, posting double-digit net sales growth in soft and chewy snacks. Pup-Peroni’s net sales grew 5%, reflecting the actions taken to sharpen the brand’s positioning, highlight its differentiated offerings, and expand household penetration.
Related: The Ultimate CBD Guide for Pet Owners
Overall, J.M. Smucker’s net sales reached $2.2 billion (€1.9B) in the quarter, up 5% YoY, thanks to a 4-percentage-point increase from net price realization and a 1-percentage-point increase from volume/mix. Gross profit surged by $504.9 million (€434.5M), primarily due to lower costs, including a net favorable impact from derivative gains and losses, tariff refunds, higher net price realization, and favorable volume/mix.
However, operating income rose by $466 million (€401.0M), partially offset by higher selling, distribution, and administrative (SD&A) expenses. For the full year, J.M. Smucker expects net sales to decrease 1% to 2% YoY, with adjusted earnings per share (EPS) now expected to range from $10.50 (€9.03) to $11.00 (€9.46).
The company’s priorities for fiscal year 2027 include driving focused organic volume growth across key platforms, enhancing profitability and accelerating earnings growth, and maintaining a disciplined approach to capital deployment. Meanwhile, J.M. Smucker is actively managing and monitoring the potential impact of El Niño on its green coffee commodity, which could affect future net sales.