(Reuters) - Packaged food maker J.M. Smucker Company’s profit and sales forecast for fiscal year 2020 came ahead of Wall Street estimates on Wednesday, as it bets on its new products and price hikes for its pet food.
The Folgers coffee maker has been doubling down on pet food and coffee, while divesting from its non-core brands such as Pillsbury. It has also been spending on launching new products to boost sales in the face of changing consumer habits.
“...A full year benefit of pet pricing actions and the impacted innovation across all our businesses, notably pet, should provide top line growth of 1 percent to 2 percent next year,” Chief Financial Officer Mark Belgya said.
The company said its adjusted profit is expected to grow between 3 percent and 4 percent in FY20. Analysts on average were expecting a 2.74 percent increase, according to IBES data from Refinitiv.
It sales growth next year is expected in the range of 1-2 percent, also ahead of the average analyst estimate of a 0.2 percent growth.
Shares of the company were up 2.6 percent at $106.69 in morning trading.
Smucker also forecast long-term adjusted profit growth of 8 percent.
The company, which is reporting third-quarter results on Feb. 26, said its sales and adjusted earnings for the second half of FY19 were in line with its expectations.
Reporting by Soundarya J in Bengaluru;Editing by Sai Sachin Ravikumar and Shinjini Ganguli