FISCAL 2025 THIRD QUARTER RESULTS SUPPLEMENTARY INFORMATION February 27, 2025 Updated full-year fiscal 2025 financial outlook. FY25 Q3 RESULTS SUPPLEMENT 2 (A) Excludes the noncomparable impact to net sales of the Hostess Brands acquisition, divestitures, and foreign currency exchange. (Dollars in millions, except per share data) CONSOLIDATED RESULTS | | FY25 Q3 | FY24 Q3 | YoY Change | | --- | --- | --- | --- | | Net Sales | $2,186.0 | $2,229.2 | (2%) | | Adjusted Gross Profit | $819.2 | $828.3 | (1%) | | ...

Exhibit 99.1 The J.M. Smucker Co. Announces Fiscal 2025 Third Quarter Results ORRVILLE, Ohio, Feb. 27, 2025 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) today announced results for the third quarter ended January 31, 2025, of its 2025 fiscal year. Financial results for the third quarter of fiscal year 2025 reflect the divestiture of the Voortman business on December 2, 2024, divestiture of the Canada condiment business on January 2, 2024, and acquisition of Hostess Brands, Inc. ("Hostess Brands") on Nov ...

Core Viewpoint - The J.M. Smucker Co. is restructuring its leadership to enhance growth in the U.S. Retail Pet Foods and Sweet Baked Snacks segments, with Judd Freitag appointed to lead these areas, effective March 7, 2025 [1][2]. Leadership Changes - Judd Freitag has been promoted to Senior Vice President and General Manager for Pet and Sweet Baked Snacks, reflecting the company's commitment to the Hostess® brand and its pet business [2]. - Freitag has a strong background in Finance, Corporate Strategy, and Brand Marketing, and has played a key role in the turnaround of the U.S. Retail Pet Foods business [2]. - Dan O'Leary, the current Senior Vice President and General Manager for Sweet Baked Snacks and Pet, will exit the company on March 7, 2025 [4]. Supply Chain and Manufacturing Structure - The company is decoupling its supply chain and manufacturing organizations to improve oversight and execution [3]. - Bryan Hutson will take on expanded responsibilities for supply chain activities as Senior Vice President, Information Services and Supply Chain [3]. - Randy Day will continue to oversee manufacturing as Senior Vice President, Operations [3].

Wall Street analysts expect Smucker (SJM) to post quarterly earnings of $2.35 per share in its upcoming report, which indicates a year-over-year decline of 5.2%. Revenues are expected to be $2.22 billion, down 0.4% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company announces its ...

Core Viewpoint - The J. M. Smucker Company (SJM) is expected to experience declines in both revenue and earnings for the third quarter of fiscal 2025, with revenue estimated at $2.22 billion, reflecting a 0.4% decrease year-over-year, and earnings per share (EPS) projected at $2.35, indicating a 5.2% decline from the previous year [1][2]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for SJM's revenues is $2.22 billion, which represents a 0.4% drop from the prior-year quarter [1]. - The consensus estimate for earnings has decreased by a penny to $2.35 per share, suggesting a 5.2% decline from the year-ago quarter [2]. - SJM has a trailing four-quarter earnings surprise of 11.5% on average, indicating some potential for unexpected performance [2]. Group 2: Market and Consumer Dynamics - SJM is facing a challenging consumer environment characterized by inflation and reduced discretionary spending, which are altering purchasing habits [3]. - The sweet baked goods segment is particularly affected, with management revising its full-year guidance downward due to ongoing consumer challenges [3]. - Diminished activity across various retail channels, including convenience stores, is adding strain to the company's performance [3]. Group 3: Cost Pressures and Operational Challenges - SJM is vulnerable to commodity cost inflation and volatility, especially in its Coffee and Pet Foods segments, which poses risks to profitability despite pricing actions taken [4]. - The company anticipates a 9% increase in selling, distribution, and administrative (SD&A) expenses for fiscal 2025, primarily due to higher marketing investments [5]. - Adjusted EPS is expected to decline in mid-single digits in the third quarter of fiscal 2025 due to elevated SD&A expenses [5]. Group 4: Strategic Initiatives and Growth Potential - Despite challenges, SJM's strategic priorities include focusing on volume and net sales growth, operational excellence, and capitalizing on fast-growing opportunities [6]. - The integration of the acquired Hostess Brands business is a key focus area for SJM [6]. - The company is reshaping its portfolio to achieve sustainable growth across pet food, pet snacks, coffee, and snacking categories [6].

Core Viewpoint - The market anticipates a year-over-year decline in Smucker's earnings due to lower revenues, with a focus on how actual results will compare to these estimates [1][2]. Earnings Expectations - Smucker is expected to report quarterly earnings of $2.35 per share, reflecting a year-over-year decrease of 5.2%, and revenues are projected to be $2.23 billion, down 0.1% from the previous year [3]. - The earnings report is scheduled for release on February 27, 2025, and could influence stock movement depending on whether the results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.62% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for Smucker is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.40%, which complicates predictions of an earnings beat [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - Smucker has a history of beating consensus EPS estimates, having done so in the last four quarters, including a surprise of +9.96% in the most recent quarter [12][13]. - Despite this history, the current combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict a beat for the upcoming report [11][16]. Conclusion - While Smucker does not appear to be a compelling earnings-beat candidate, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Company Events - The J.M. Smucker Co. will present at the 2025 CAGNY Conference on February 19, 2025, at 2:00 p.m. Eastern Standard Time [1] - The Company will release its third quarter fiscal 2025 financial results on February 27, 2025, with a press release available at 7:00 a.m. Eastern Standard Time [2] - A live question and answer session will be held with Mark Smucker and Tucker Marshall at 8:30 a.m. Eastern Standard Time on the same date [2] Company Overview - The J.M. Smucker Co. offers a diverse range of food products for both people and pets, leading in categories such as coffee, peanut butter, fruit spreads, and pet food [4] - The Company is committed to producing quality products and operating responsibly, aiming to grow its business while positively impacting society [4]

Core Viewpoint - The J.M. Smucker Co. has agreed to divest its Cloverhill and Big Texas brands, along with certain private label products, to JTM Foods for approximately $40 million, as part of its strategy to optimize its portfolio and focus on the Sweet Baked Snacks segment [1][2]. Group 1: Transaction Details - The transaction is an all-cash deal valued at around $40 million, subject to working capital adjustments, and includes trademarks, licenses, and a manufacturing facility in Chicago [1]. - Approximately 400 employees will transition to JTM Foods as part of the divestiture [1]. - The divested brands and private label products generated net sales of about $30 million for the fiscal year ending April 30, 2024, and are expected to generate approximately $60 million in fiscal year 2025 [2]. Group 2: Financial Impact - The divestiture is expected to have an immaterial impact on the company's adjusted earnings per share for the full year [3]. - The company plans to use the net proceeds from the transaction to pay down debt [3]. - Additional information regarding the transaction's impact will be provided when the company releases its third-quarter results [3]. Group 3: Timeline and Advisors - The transaction is anticipated to close in the fourth quarter of the current fiscal year, ending April 30, 2025 [4]. - RBC Capital Markets, LLC is serving as the financial advisor, while Benesch, Friedlander, Coplan & Aronoff LLP is the legal advisor for the transaction [4].

Core Insights - The J. M. Smucker Company (SJM) is leveraging strategic acquisitions and innovation to navigate a dynamic market landscape, with a focus on core growth areas like pet food, coffee, and snacking [1][2] Group 1: Strategic Strengths - SJM's second-quarter fiscal 2025 performance showed strong organic net sales and earnings, driven by brands such as Cafe Bustelo, Jif, and Uncrustables [2] - The recent acquisition of Hostess Brands is seen as a long-term growth catalyst, aimed at optimizing distribution and driving innovation in the sweet baked goods segment [3] - The Coffee segment reported a 3% sales increase in the second quarter of fiscal 2025, with Cafe Bustelo achieving a remarkable 20% sales growth [4] Group 2: Market Position and Partnerships - Strategic partnerships with JDE Peet's and Keurig Green Mountain have enhanced SJM's competitive position in the coffee market, balancing pricing actions with consumer affordability [5] - The company is focusing on high-growth opportunities while improving operational excellence to sustain profitability [2] Group 3: Challenges and Adjustments - SJM faces challenges from inflationary pressures and reduced discretionary spending, particularly affecting the sweet baked goods segment, leading to a revised sales forecast of approximately $1.3 billion for the Sweet Baked Snacks unit in fiscal 2025, a $60 million reduction from earlier estimates [6] - Cost inflation in raw materials, transportation, and production remains a concern, with pricing strategies implemented to mitigate these pressures [8] - Elevated selling, distribution, and administrative (SD&A) expenses are expected to rise by 9% in fiscal 2025, impacting profitability and leading to a projected mid-single-digit decline in adjusted earnings per share for the third quarter [9]

Core Insights - The J. M. Smucker Company (SJM) has shown resilience in a dynamic market, achieving organic net sales and earnings growth in Q2 of fiscal 2025, supported by a strong brand portfolio including Uncrustables, Meow Mix, Cafe Bustelo, and Jif [1][2] Growth Drivers - The company is focused on strategic priorities such as increasing volume and net sales, operational excellence, and capitalizing on growth opportunities, particularly through the integration of the Hostess business acquired in November 2023 [2][3] - Key growth drivers for fiscal 2025 include Uncrustables, Milk-Bone, Meow Mix, and Cafe Bustelo, with expected net sales growth of 7.5%-8.5% [6] Portfolio Restructuring - The J. M. Smucker has divested several non-core businesses, including Voortman, Sahale Snacks, and certain pet food brands, to optimize its portfolio and focus on high-growth areas [4][9] - The company aims to reshape its portfolio to achieve sustainable growth across pet food, coffee, and snacking categories [3][4] Coffee Segment Performance - The Coffee segment reported a 3% sales increase in Q2, driven by pricing actions and brand strength, with Cafe Bustelo experiencing a notable 20% sales growth [5][10] - Folgers also saw a 5% sales increase, indicating strong demand and successful pricing strategies [5] Challenges and Adjustments - The company faces challenges from inflationary pressures and reduced discretionary spending, particularly affecting the sweet baked goods segment, leading to a revised sales estimate of approximately $1.3 billion for the Sweet Baked Snacks unit in fiscal 2025, a $60 million reduction from previous estimates [9][10] - Cost inflation and increased selling, distribution, and administrative expenses are expected to constrain profitability, with SD&A expenses projected to rise by about 9% in fiscal 2025 [10][11] Overall Outlook - Despite challenges, the strong brand portfolio and strategic acquisitions position The J. M. Smucker for growth, with a focus on executing strategies effectively in high-growth categories [11][12]