J M Smucker Co (NYSE:SJM) stock rose 4.67% (As on December 5, 11:15:09 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 24. U.S. Retail Coffee net sales decreased $24.1 million, or 3 percent. Net price realization reduced net sales by 4 percentage points, primarily driven by list price decreases, partially offset by reduced trade spend. Volume/mix was neutral in the quarter, as increases for the Café Bustelo and Dunkin brands were mostly offset by the Folgers brand. U.S. Retail Consumer Foods Net sales increased $32.1 million, or 7 percent. Higher net price realization increased net sales by 7 percentage points, primarily reflecting a favorable impact of lapping customer returns and fees related to the Jif peanut butter product recall in the prior year and a list price increase for Jif peanut butter. Volume/mix was neutral to net sales, as an increase for Smucker’s Uncrustables frozen sandwiches was mostly offset by a decrease for Jif peanut butter. U.S. Retail Pet Foods Net sales decreased $301.2 million, or 39 percent. Excluding $377.8 million of noncomparable net sales in the prior year related to the divested pet food brands, net sales increased $76.6 million, or 20 percent. Volume/mix increased net sales by 12 percentage points, primarily driven by $38.4 million of contract manufacturing sales related to the divestiture and growth for dog snacks, primarily driven by the Milk-Bone brand.

SJM in the second quarter of FY 24 has reported the adjusted earnings per share of $2.59, beating the analysts’ estimates for the adjusted earnings per share of $2.47, according to FactSet consensus. The company had reported the adjusted revenue growth of 35.9 percent to $1.939 billion in the second quarter of FY 24, missing the analysts’ estimates for revenue of $1.943 billion.

The company updated its full-year guidance to reflect the acquisition of Twinkie maker Hostess Brands. It now expects sales to rise 8.5% to 9.0%, down from prior guidance of 8.5% to 9.5%. The net sales decrease reflects $1.5 billion of net sales in the prior year related to the divested pet food brands, $23.7 million of net sales in the prior year related to the divested Sahale Snacks business, and $650.0 million of anticipated net sales in the current fiscal year related to the acquisition of Hostess Brands. It expects adjusted EPS to range from $9.25 to $9.65, compared with prior guidance of $9.45 to $9.85.