Profit in the third quarter rose for Orrville-based food company J.M. Smucker, though its net income per diluted share decreased, partially from merger costs from its purchase of a pet-food company.
Smucker Tuesday morning reported net income of $318.3 million, up 24.7 percent from $255.1 million for the same period a year ago. Net sales increased $533.9 million , or 37 percent, reflecting the contribution of Big Heart Pet Brands acquired in fiscal 2015, the company said.
It's net income per diluted share was $1.55, a decrease of 2 percent, the company said, as the benefit from Big Heart operations and the gain on the U.S. canned milk divestiture were offset by merger and integration costs, higher interest expense, and the impact of additional shares outstanding.
In a statement, Richard Smucker, chief executive officer said: "we delivered another quarter of solid financial results which, most notably, was attributable to the ongoing momentum for our coffee business. "Our overall performance continues to reflect contributions from our key growth initiatives for the fiscal year. These include launching a number of on-trend products such as Dunkin' Donuts® K-Cup® pods, providing consumers lower pricing on Folgers® roast and ground offerings, expanding distribution for the Natural Balance® brand into the largest pet specialty retailer, and delivering on our cost savings and working capital initiatives. In addition, we are now just a week away from a key integration milestone related to the Big Heart Pet Brands acquisition, and all activities remain on track. As we move ahead, our teams remain focused on executing our long-term strategy to deliver continued growth."
Smucker also updated its fiscal 2016 earnings outlook to account for the gain on the U.S. canned milk divestiture, with non-GAAP income per diluted share expected to range from $5.84 to $5.94 and its adjusted non-GAAP income per diluted share expected to range from $6.99 to $7.09 .
Shares were down $2.95 to $123.91 in morning trading.