J. M. Smucker (NYSE:SJM) Posts Q2 Sales In Line With Estimates

Packaged foods company J.M Smucker (NYSE:SJM) reported results in line with analysts’ expectations in Q2 CY2024, with revenue up 17.7% year on year to $2.13 billion. It made a non-GAAP profit of $2.44 per share, improving from its profit of $2.21 per share in the same quarter last year.

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"We are pleased with the strong start of our fiscal year and ability to deliver net sales and earnings growth in what remains a dynamic consumer environment," said Mark Smucker, Chair of the Board, President and Chief Executive Officer.

Best known for its fruit jams and spreads, J.M Smucker (NYSE:SJM) is a packaged foods company whose products span peanut butter to coffee to pet food.

Shelf-Stable Food

As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.

Sales Growth

J. M. Smucker is one of the larger consumer staples companies and benefits from a well-known brand, giving it customer mindshare and influence over purchasing decisions.

As you can see below, the company’s annualized revenue growth rate of 2.5% over the last three years was weak for a consumer staples business.

This quarter, J. M. Smucker’s revenue grew 17.7% year on year to $2.13 billion, falling short of Wall Street’s estimates. Looking ahead, Wall Street expects sales to grow 6.1% over the next 12 months, a deceleration from this quarter.

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Volume Growth

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.

J. M. Smucker’s average quarterly volume growth was a healthy 1.6% over the last two years. This is pleasing because it shows consumers are purchasing more of its products.

In J. M. Smucker’s Q2 2025, year on year sales volumes were flat. By the company’s standards, this result was a meaningful deceleration from the 13% year-on-year increase it posted 12 months ago. We’ll be watching J. M. Smucker closely to see if it can reaccelerate demand for its products.

Key Takeaways from J. M. Smucker’s Q2 Results

It was good to see J. M. Smucker beat analysts’ EPS expectations this quarter. On the other hand, its full-year earnings forecast was underwhelming and its revenue missed Wall Street’s estimates. Overall, this was a mediocre quarter. The stock traded down 1.9% to $118.39 immediately after reporting.

So should you invest in J. M. Smucker right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.