Sunday, 13 Jun, 2021

JM Smucker CEO says he's seeing widespread inflation and the company is passing some price increases onto consumers

D Dipasupil/Getty ImagesJM Smucker's CEO, Mark Smucker, sees inflation across the board and is passing some price increases onto consumers.The CEO..

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  • JM Smucker's CEO, Mark Smucker, sees inflation "across the board" and is passing some price increases onto consumers.
  • The CEO added JM Smucker's name to a growing list of consumer staples companies raising prices.
  • The firm revealed an 8.1% year-over-year drop in revenue in its fiscal fourth-quarter earnings release Thursday.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

JM Smucker's CEO Mark Smucker says he's seeing widespread inflation and the company is passing some price increases onto consumers.

"We have been seeing inflation over the past year across the board," Smucker said in an interview with CNBC's Sara Eisen.

The CEO added that he believes rising costs are "manageable" because the company has been able to pass costs onto consumers.

"This is something that we deal with on a regular basis. Our products (prices), in many cases, are based on commodities so we have been very successful over the years in ensuring that we can pass along price increases to our consumers, partnering with our retail customers to do that in the most equitable and fair way," Smucker said.

Smucker went on to explain that the current "inflationary environment" affects everyone, but his company has the ability to navigate the rising tides.

JM Smucker revealed an 8.1% year-over-year drop in revenue in its fiscal year 2021 fourth-quarter earnings release on Thursday. The company now expects sales for the fiscal year 2022 to decrease between 2% and 3%.

JM Smucker missed analyst estimates for GAAP earnings per share by $0.24 in the quarter as well, earning just $1.35 per share.

The company is the latest in a line of consumer staples firms that have announced price increases.

Clorox said during its quarterly earnings call on April 30 that it plans to increase prices for some of its Glad brand products due to higher material and shipping costs.

Whirlpool also raised its prices between 5% and 12% in April with CEO Mark Bitzer citing raw material cost increases in steel, plastics, and oil.

Procter & Gamble, General Mills, Kimberly Clark, and Honeywell have also announced price hikes recently.

Despite falling sales, JM Smucker stock is still up roughly 17% in the past six months, and shares traded up 0.83% on Thursday as of 1:33 p.m. ET.


JM Smucker stock chart
Read the original article on Business Insider


By: [email protected] (Will Daniel)
Title: JM Smucker CEO says he's seeing widespread inflation and the company is passing some price increases onto consumers
Sourced From: feedproxy.google.com/~r/businessinsider/politics/~3/N6HvA7nJGhU/jm-smucker-ceo-inflation-passing-price-increases-onto-consumers-2021-6
Published Date: Thu, 03 Jun 2021 18:26:43 +0000