The J. M. Smucker Company, also known as Smucker and Smucker’s, has reported a 9% increase in net sales to $1.9bn in the first quarter ending 31 July 2018.
Compared to $1.748bn for the same period in the previous year, the increase reflects a $162.8m contribution from the $1.7bn Ainsworth acquisition this year.
The American fruit spreads, ice cream toppings and beverages manufacturer also reported an operating income of $226.9m, a 4% decline compared to $235.2m for the same period in the previous year.
The decrease is due to higher selling, distribution, and administrative expenses and a $9m increase in amortisation expense primarily attributable to the acquisition.
Net income per common share was $1.17, a 4% increase compared to $1.12 during the same period of the previous year.
Adjusted earnings per share of the company were reported to be $1.78, an 18% increase compared to $1.51.
J. M. Smucker chief executive officer Mark Smucker said: “Our strong first quarter earnings reflect the execution of our strategy, aligning our portfolio for growth in pet food, coffee, and snacking.
“During the first quarter, we completed the Ainsworth acquisition, which drove much of our year-over-year sales growth, and we are making significant progress toward integrating the business.
“We also announced a planned divestiture of our US baking business, which is expected to close at the end of this month. In addition, we had strong first quarter performance for key growth brands including Dunkin’ Donuts, Smucker’s Uncrustables, Nature’s Recipe, and Café Bustelo while continuing to execute our cost reduction programmes to enhance margins and provide fuel for investments in future growth.”