The J. M. Smucker Company (SJM) SEC Filings & Earnings Calls

Sweet Baked Snacks Volume Decline

“Sweet Baked Snacks net sales decreased $16.7 in the first three months of 2027. Volume/mix decreased net sales by 8 percentage points, primarily reflecting decreases for snack cakes and breakfast.” · word for word

Class Action Litigation

“We are defendants in a series of putative class action lawsuits...premised on allegations that we have misrepresented the number of servings that can be made from various canisters of Folgers coffee on the packaging for those products.” · word for word

Tariff refunds are non-recurring; guidance excludes new tariffs or changes to existing tariffs, creating uncertainty for future quarters

“This guidance reflects the Company's expectations based on its current understanding of these factors and does not assume any impacts from new tariffs, changes to existing tariffs, or changes to the tariff refunds received in the first quarter.” · word for word

Net sales still expected to decline 1-2% for FY27, indicating ongoing volume/mix headwinds in certain categories

“Net sales is now expected to decrease 1.0 to 2.0 percent versus the prior year. The decrease in net sales primarily reflects lower net price realization and neutral volume/mix.” · word for word

Sweet Baked Snacks impairment risk

“the impairment charges related to the goodwill of the Sweet Baked Snacks reporting unit, the impairment charges related to the Hostess brand indefinite-lived trademark” · word for word

Tariff exposure

“the unanticipated negative impact that tariffs had on the Company's financial results, primarily adjusted earnings per share” · word for word

Cost inflation and supply chain disruption

“cost inflation, tariffs, and supply chain disruptions” · word for word

Customer concentration risk

“Sales to Walmart Inc. and subsidiaries, including Sam's Club, amounted to 34 percent of net sales in 2026.” · word for word

Commodity cost inflation risk

“During 2026, we continued to experience materially higher commodity and supply chain costs, including manufacturing, ingredient, and packaging costs, driven by inflationary pressures, which may persist into 2027.” · word for word

Coffee supply disruption risk

“We expect the green coffee commodity markets to remain challenging due to ongoing and significant price volatility.” · word for word

Single-source supplier risk

“KDP is our primary supplier of single-serve pods and the single-source supplier of liquid coffee for our Away From Home business.” · word for word

Labor disruption risk

“As of April 30, 2026, 21 percent of our full-time employees, located at eight manufacturing locations, are covered by collective bargaining agreements. These contracts vary in term depending on location, with three contracts expiring in 2027.” · word for word

FY2027 net sales expected to decline 3-4% due to divestitures and volume/mix headwinds.

“Fiscal year 2027 outlook: net sales expected to decrease 3.0 to 4.0 percent.”

Loss of key executive (President and COO) could create operational uncertainty, though separation appears orderly with standard provisions.

“John Brase, formerly President and Chief Operating Officer, was no longer an executive officer... Separation Agreement includes cooperation, non-disparagement, non-disclosure, confidentiality, non-competition, and non-solicitation provisions.” · word for word

Sweet Baked Snacks impairment risk realized

“We recognized total pre-tax impairment charges of $961.7 during the third quarter of 2026, of which $507.5 and $454.2 related to the goodwill of the Sweet Baked Snacks reporting unit and the Hostess brand indefinite-lived trademark, respectively.” · word for word

Consumer discretionary spending pressure

“The declines are reflective of both near-term underperformance and long-term expectations for both net sales and segment profit, driven by the sustained reduction in consumer discretionary income due to inflationary pressures and an overall shift in consumer sentiment related to sweet baked goods, contributing to a slower than anticipated recovery in the swe” · word for word

Tariff and commodity cost inflation

“Gross profit decreased $50.3, or 6 percent, in the third quarter of 2026, primarily driven by higher costs, inclusive of commodity costs and tariffs, and unfavorable volume/mix, partially offset by higher net price realization.” · word for word

Fire at Emporia facility

“Subsequent to January 31, 2026, a fire occurred at our Emporia, Kansas manufacturing facility resulting in a temporary disruption of production. We expect the incident to result in reduced net sales in the fourth quarter of 2026.” · word for word

Activist engagement may lead to strategic or operational changes, but no immediate financial risk.

“Elliott Investment Management is a large investor; information-sharing agreement signed; board additions suggest collaborative rather than confrontational approach.”

Commodity cost and tariff pressure on margins

“Gross profit decreased $50.3M, or 6%, reflecting higher costs inclusive of commodity costs and tariffs.”

Sweet Baked Snacks impairment risk

“Noncash impairment charges attributable to the Sweet Baked Snacks reporting unit and Hostess brand trademark.” · word for word

Volume/mix decline in sweet baked goods and fruit spreads

“Volume/mix decreased 2pp, driven by decreases for sweet baked goods and fruit spreads.”

Organizational restructuring may cause short-term disruption

“Multiple executive role changes including COO departure and new appointments.”

Input cost inflation, tariffs, and unfavorable volume/mix pressuring margins.

“Higher commodity costs, tariffs, and unfavorable volume/mix; adjusted gross profit -10%.”

Input cost inflation and tariff pressure

“Gross profit decreased $16.2, or 2 percent, in the second quarter of 2026, primarily driven by higher commodity costs, unfavorable volume/mix, tariffs, and the noncomparable impact of divestitures, partially offset by higher net price realization.” · word for word

Consumer demand elasticity and volume decline

“we anticipate the price elasticity of demand could remain elevated during 2026 as consumers continue to experience broader inflationary pressures and are selective in their spending.” · word for word

Cash flow deterioration

“The $241.2 decrease in cash provided by operating activities in the first six months of 2026 was primarily driven by lower net income adjusted for noncash items in the current year and higher working capital requirements in 2026.” · word for word

Litigation risk (Folgers class action)

“The plaintiffs assert claims arising under various state laws for false advertising, consumer protection, deceptive and unfair trade practices, and similar statutes. Their claims are premised on allegations that we have misrepresented the number of servings that can be made from various canisters of Folgers coffee on the packaging for those products.” · word for word