By Nicholas G. Miller

J.M. Smucker swung to a fiscal first-quarter loss but boosted its full-year sales guidance as tariffs raised coffee prices and sapped profits from its retail-coffee division.

The food-and-beverage company, which owns Folgers coffee and Jif peanut butter, on Wednesday posted a loss of $43.9 million, or 41 cents a share, down from a profit of $185 million, or $1.74 a share, the year prior.

Adjusted earnings were $1.90 a share. Analysts were expecting $1.93 a share, according to FactSet.

The Orrville, Ohio, company, which in addition to Folgers owns retail coffee brands Dunkin' and Cafe Bustelo, said in June it raised prices of its coffee in May and would do so again in August. That announcement came even before President Trump imposed a 50% tariff on certain imports from Brazil, one of the world's largest coffee producers.

Profit from the company's retail-coffee division fell 22%.

"Though the external environment continues to be dynamic we are successfully managing what we can control," said Chief Executive Mark Smucker.

The company reported $2.11 billion in sales, down from $2.13 billion a year earlier. Wall Street expected $2.12 billion.

J.M. Smucker raised its full-year sales-growth guidance to between 3% and 5%, up from its previous forecast of 2% to 4%. It reaffirmed its previous full-year earnings guidance of $8.50 to $9.50 a share. Analysts see adjusted earnings of $9.21 a share.

J.P. Morgan analysts said in a note this month that coffee volumes have been resilient despite the price increases and that J.M. Smucker would also see growth in its sales of Uncrustables and a rebound in pet food demand. "This upside could help mitigate incremental inflation in FY26 from stepped up tariffs on coffee from Brazil," the analysts said.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

August 27, 2025 07:26 ET (11:26 GMT)

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