The J. M. Smucker Company SJM is in solid shape, courtesy of rising demand stemming from increased at-home consumption amid the coronavirus outbreak. Apart from this, the company’s strategic buyouts and partnerships along with focus on e-commerce business bode well. Also, its robust cost-saving efforts are noteworthy.
Let’s dive deeper.
Coronavirus-Led Demand & Impressive Outlook
Burgeoning demand amid coronavirus pandemic have bolstered the company’s first-quarter fiscal 2021 results with the top and the bottom line advancing year over year and beating the Zacks Consensus Estimate. Notably, sales rose almost 11% on the back of favorable volume/mix in all retail businesses stemming from higher at-home consumption amid the pandemic.
Impressed with fiscal first-quarter results, management raised its fiscal 2021 net sales and adjusted earnings per share (EPS) outlook. Smucker expects net sales to range from flat to 1% growth. The top-line view reflects escalated at-home consumption as well as re-stocking of