By Adriano Marchese

Folgers owner J.M. Smucker is no longer considering raising coffee prices during the current quarter after the Trump administration's removal of raw-coffee tariffs.

The Orrville, Ohio, company has absorbed the bulk of its inflationary pressure in unprocessed coffee through a series of price hikes over the last year, Chief Executive Mark Smucker said in prepared remarks Tuesday. But he said another price increase isn't in the cards this winter, as the U.S. has excluded raw coffee from tariffs. Smucker also expects prices to normalize over time from its current inflationary phase.

"Given the recent changes to U.S. trade policy to exclude tariffs on green coffee, we are no longer contemplating another pricing action in early winter," Smucker said.

The price increases helped boost sales in the company's coffee segment, which also includes the Cafe Bustelo brand. The division saw sales rise about 21% in the three months ended Oct. 31, Smucker said Tuesday. That helped lift the company's overall sales by 2.6% to $2.33 billion, which edged above Wall Street expectations of $2.32 billion for the quarter.

But this came at the expense of the segment's profit, which fell by nearly one-quarter, as sales volumes fell with some consumers pulling back on their coffee purchases.

Overall for its fiscal second quarter, Smucker, which also owns Twinkie maker Hostess and the Jif peanut butter brand, posted net income of $241.3 million, or $2.26 a share, compared with a loss of $24.5 million, or 23 cents a share, in the same quarter a year earlier, when it logged a loss of $260.8 million from divestitures.

Adjusted earnings--which excludes exceptional costs and one-off items, such as the previous year's divestiture of Voortman cookies--came in line with analyst forecasts at $2.10 a share, according to FactSet.

Smucker executives added that results were also boosted by growth of its Uncrustables brand, which is adding varieties that feature more proteins and which is also expanding distribution into the convenience-store channel. They expect Uncrustables sales to accelerate to a double-digit growth rate for the remainder of the fiscal year, and to top $1 billion in sales.

The results prompted the company to narrow its outlook for the full fiscal year, which includes a drag from lost sales from its divested businesses and lower pet-food contract manufacturing.

J.M. Smucker now expects net sales to rise 3.5% to 4.5%, compared with its previous guidance of a 3% to 5% increase. Analysts polled on FactSet expect revenue of $9.08 billion, which would be a 4% increase over the prior year's $8.73 billion.

Adjusted earnings were narrowed as well, and are now expected to come in between $8.75 and $9.25 a share, compared with a previous expectation of between $8.50 and $9.50 a share, and a Wall Street target of $9.11 a share.

Shares were down 3.2% in early trading.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

November 25, 2025 09:54 ET (14:54 GMT)

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