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J.M. Smucker misses quarterly profit estimates as high coffee prices weigh
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J.M. Smucker misses quarterly profit estimates as high coffee prices weigh
Aug 27, 2025 6:55 AM

Aug 27 (Reuters) - Folgers coffee maker J.M. Smucker

missed Wall Street estimates for first-quarter profit on

Wednesday, hurt by a rise in commodity costs as U.S. tariffs

weighed.

Higher inflation has prompted packaged food companies such

as J.M. Smucker and Conagra Brands ( CAG ) to raise product

prices in a bid to offset elevated input costs, which have

worsened due to tariff-led expenses since the start of the year.

The rise in prices has led to weaker product demand for J.M.

Smucker, whose shares fell about 7% following the results.

The company, which imports green coffee majorly from Brazil

and Vietnam, had warned in June that the commodity's heavy

exposure to tariffs would hurt its profitability.

The Jif peanut butter maker buys about 500 million pounds of

green coffee each year and could face the brunt of 50% tariffs

on Brazilian imports, which were raised in July from a prior

level of 10%.

J.M. Smucker's cost of products sold in the three months

ended July 31 rose 23% to $1.64 billion, leading a quarterly

loss of $43.9 million on a GAAP basis.

The company posted adjusted profit of $1.90 per share for

the first quarter, missing analysts' average estimate of $1.93

per share, according to data compiled by LSEG. It had reported a

profit of $185 million a year ago.

However, J.M. Smucker raised its annual net sales growth

forecast to a range of 3% to 5%, up from a prior view of 2% to

4%.

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