Core Insights - The J.M. Smucker Company (SJM) is experiencing strong performance in its Coffee business, particularly in the U.S. Retail Coffee segment, which has positively impacted overall results despite challenges in other areas of the portfolio [1][7]. Financial Performance - U.S. Retail Coffee net sales rose 23% to $908.2 million in the third quarter, driven by higher pricing that offset increased costs [2][7]. - Segment profit for U.S. Retail Coffee declined 5% to $199 million due to higher commodity costs, tariffs, and a slight decrease in volume/mix [2]. - Cafe Bustelo, a key brand, achieved 46% net sales growth in the U.S. Retail Coffee segment, with a 20% increase in volume/mix [4][7]. Pricing and Demand Trends - Consumers have absorbed higher coffee prices better than expected, allowing SJM to raise prices in May and August without significantly harming demand [3][7]. - For fiscal 2026, SJM anticipates Cafe Bustelo will exceed $500 million in net sales, an increase of over $100 million from the previous year [6][7]. Market Position and Outlook - The coffee segment remains a strong sales driver for SJM, benefiting from pricing strength and brand performance, particularly from Cafe Bustelo [7]. - Despite strong demand, ongoing pressures on profitability due to costs and volume challenges persist [7].

CAGNY CONFERENCE 2026 BUSINESS UPDATE FEBRUARY 18, 2026 MARK SMUCKER CHIEF EXECUTIVE OFFICER, PRESIDENT AND CHAIR OF THE BOARD FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows, that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from any future results, performance, or achievements expressed or implied by those forward-looking statements. Us ...