Packaged foods company J.M Smucker (NYSE: SJM) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 2.8% year on year to $2.14 billion. Its non-GAAP profit of $2.31 per share was 2.8% above analysts’ consensus estimates.
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J. M. Smucker (SJM) Q1 CY2025 Highlights:
- Revenue: $2.14 billion vs analyst estimates of $2.19 billion (2.8% year-on-year decline, 1.9% miss)
- Adjusted EPS: $2.31 vs analyst estimates of $2.25 (2.8% beat)
- Adjusted EBITDA: $499.6 million vs analyst estimates of $484.5 million (23.3% margin, 3.1% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $9 at the midpoint, missing analyst estimates by 12.4%
- Operating Margin: -27.9%, down from 18.4% in the same quarter last year
- Free Cash Flow Margin: 13.9%, similar to the same quarter last year
- Sales Volumes fell 3% year on year (1% in the same quarter last year)
- Market Capitalization: $11.9 billion
"Our fourth quarter and full-year results underscore the demand for our leading brands, the resilience of our business, and our ability to act with speed and agility in a dynamic operating environment," said Mark Smucker, Chief Executive Officer and Chair of the Board.
Company Overview
Best known for its fruit jams and spreads, J.M Smucker (NYSE: SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.
Sales Growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $8.73 billion in revenue over the past 12 months, J. M. Smucker is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only so many big store chains to sell into, making it harder to find incremental growth. To accelerate sales, J. M. Smucker likely needs to optimize its pricing or lean into new products and international expansion.
As you can see below, J. M. Smucker’s 2.9% annualized revenue growth over the last three years was sluggish, but to its credit, consumers bought more of its products.
This quarter, J. M. Smucker missed Wall Street’s estimates and reported a rather uninspiring 2.8% year-on-year revenue decline, generating $2.14 billion of revenue.
Looking ahead, sell-side analysts expect revenue to grow 2.4% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and suggests its newer products will not lead to better top-line performance yet.
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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 2.1% over the last two years. This is pleasing because it shows consumers are purchasing more of its products. 
In J. M. Smucker’s Q1 2025, sales volumes dropped 3% year on year. This result was a reversal from its historical levels.
Key Takeaways from J. M. Smucker’s Q1 Results
It was encouraging to see J. M. Smucker beat analysts’ gross margin expectations this quarter. We were also happy its EPS and EBITDA outperformed. On the other hand, its full-year EPS guidance missed and its revenue fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 7.7% to $103.15 immediately following the results.
The latest quarter from J. M. Smucker’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.
