THE J. M. SMUCKER COMPANY (+) : F4Q26 Q&A Call Notes

Research evidence excerpt

THE J. M. SMUCKER COMPANY (+) : F4Q26 Q&A Call Notes

mpany targets a gross cost savings amount that is a couple points of revenue

to support reinvestment, inflation coverage, or return to shareholders

– F1Q27 Net Sales: The company expects F1Q27 net sales to be flat YOY

– FY27 Coffee Deflation Cadence: The company will begin to experience deflation associated with green coffee

in its F2Q27 and onwards, a key driver of the company’s top-line cadence for the year

– FY27 Coffee List Price Cut: List price declines in coffee are dictated by the company crossing key thresholds

dependent on the timing of when it takes physical inventory of lower coffee costs. At the moment the company

is more focused on trade as a price lever and cannot commit to specific timing for a list price decline

– Spreads Category Environment: The company sees the competition within the categories as mostly rational.

The company is not seeing any unusual activity in the peanut butter category specifically

– Peanut Butter Category Softness: The company noted that softness in the peanut butter category was driven

by some volatility, which was influenced by weather events and stock ups. The company does not believe the

volatility is structural

– Fridge Friendly Uncrustables: The company is seeing great reception on fridge friendly Uncrustables from both

consumers and customers. The company is transitioning every sandwich to the fridge friendly format by the mid-

summer timeframe

– Uncrustables Focus: The company is focused on continuing to make sure it has the right price, promotion, and

merchandizing as well as marketing. The company will continue to absorb ongoing manufacturing costs as it

brings on additional capacity to support future growth