J.M. Smucker Reports a $72 Million Fall in Pet Food Sales

J.M. Smucker Reports a $72 Million Fall in Pet Food Sales

In their report for the third quarter of 2022, J.M. Smucker Company announced a considerable decline in pet food sales compared to last year. 

In Q3 of the fiscal year 2021, the company’s sales reached $768.6 million, while in the same period of 2022, the sales amounted to $696.6 million. This shows a decline in sales of $72 million.

But not all is grim for the company, as most of the decline in sales comes from the fact that J.M. Smucker sold their highly profitable Natural Balance brand in January 2021 and their private label dry pet food business in December 2021.

In recent years, pet owners have become more concerned about their pet nutrition, and more likely to pay more for quality food, so Natural Balance as a premium brand brought a lot of money to the company.

If the sales of Natural Balance and their private label are removed from the calculation, the sales have decreased by about $5.8 million, which amounts to only 1%.

Additionally, in Q3 of fiscal 2021, the company’s pet segment earned them $135.1 million in profits, while in Q3 of 2022, the profits were only $95.7 million. This means that they’ve earned almost $40 million, or 29.1%, less than last year. 

This company’s decline in sales comes at a time when high prices and inflation are leading some owners to stop splurging on their pets. So, this probably won’t be the only company to report such a fall.

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