J M Smucker Lifts Cash Flow Outlook

J. M. Smucker(NYSE:SJM) reported fiscal Q1 2026 earnings on August 27, 2025. Results were shaped by mid-20% increases in coffee prices for fiscal 2026, headwinds from increased green coffee tariffs, SKU rationalization in sweet baked snacks, and a $100 million increase in full-year free cash flow guidance for fiscal 2026. Key management commentary addressed volumes, price elasticity, cost savings timelines, and early evidence of brand momentum across multiple segments.Total coffee segment pricing is now expected to rise by mid-20%, up from the prior 20%, due to new tariffs on green coffee. Historical price elasticity is holding near 0.5 for the coffee portfolio, except for upcoming winter increases, which may see heightened volume impacts according to management.Escalating green coffee tariffs are eroding potential profit gains from pricing action and maintaining segment margin pressure despite robust brand execution, making tariff policy the primary variable for investor attention this year.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool