ORRVILLE, OHIO — The J.M. Smucker Company’s US Retail Pet Foods segment posted modest sales growth in the first quarter of fiscal 2027 for the period ended July 31, supported by gains in cat nutrition, while dog snacks remained flat.

“Our first quarter results exceeded our expectations for both net sales and adjusted earnings per share, demonstrating continued momentum across the Company,” said Mark Smucker, chief executive officer, president and chair of the board. “Our performance reflects the strength of our differentiated portfolio, disciplined execution against our strategic priorities, and the investments we continue to make in our brands and capabilities.” 

Pet food performance

Net sales for the company’s US Retail Pet Foods segment were reported at $371.7 million, a 1% increase from $368 million in the prior year period, which the company attributed to an increase in dry cat food. 

Net sales for Meow Mix rose 4%, which the company attributed to success in dry cat food. For dog snacks, net sales dropped 2%, led by a decline in the company’s Jerky Treats brand and partially offset by growth for its Pup-Peroni brand. 

“We remain confident in the long-term potential of the dog snacks category, supported by favorable pet population trends, the continued humanization of pet and the growth of e-commerce,” Mark Smucker said. “Within our portfolio, the Milk-Bone brand returned to volume/mix growth during the quarter, although lower net price realization resulted in flat net sales. We are also beginning to see stabilization in the Pup-Peroni brand, which grew net sales 5% in the quarter, reflecting the actions we are taking to sharpen the brand’s positioning, highlight its differentiated offerings and expand household penetration.”

Segment profit was $98.9 million, a 2.4% decrease from $101.3 million in the prior year, which the company attributed to higher costs and higher marketing spend, partially offset by tariff refunds and favorable volume/mix. Segment profit margin was 26.6%, compared to 27.5% in the prior year period.

Total company performance

Net sales for the first quarter were reported at $2.22 billion, a 5% increase from $2.11 billion in the prior year period. 

Gross profit was $979.6 million, a significant 106% increase from $474.7 million in the prior year. Adjusted gross profit was $950.2 million, a 28% increase from $743.2 million in the prior year period. 

Operating income was $511.6 million, a 1,022% increase from $45.6 million. Adjusted operating income was $504.7 million, a 46% increase from $370.3 million in the prior year period. Net income was $324.3 million, compared to a net loss of $43.9 million in the prior year.

Selling, distribution and administrative expenses were $410.5 million, a 9% increase from $377.4 million in the prior year.

In addition to its financial results for the first quarter, The J.M. Smucker Company shared its full-year outlook for the 2027 fiscal year. Net sales are expected to decrease from 1% to 2%, versus the previous expectation of 3% and 4%, due to lower net price realization and neutral volume/mix. Capital expenditure is expected to be around $325 million, flat from previous expectations.

“Based on our strong first quarter performance and expectations for the remainder of the year, we are increasing our net sales, adjusted earnings per share and free cash flow outlook for the fiscal year,” Mark Smucker said. “We are focused on advancing our strategic priorities of driving organic volume growth across our key platforms, improving profitability and accelerating earnings growth, and maintaining a disciplined approach to capital deployment. We remain confident in our ability to deliver long-term growth and increase shareholder value.”

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