Net sales increased $16 million, or 1%, while adjusted EPS came in at $2.43, a 2% increase.
Supply Chain Challenges
Mark Smucker, President and CEO, praised Smucker's ability to generate sales growth in the face of the current supply chain crisis.
Smucker commented, "We are pleased with our ability to increase our net sales and adjusted earnings per share expectations for the fiscal year despite increasing cost inflation and continued supply chain disruption."
"We remain confident that the actions we are taking to execute our strategy are positioning us to deliver sustainable growth and create shareholder value over the long term."
Overall, gross profit decreased $106.7 million, or 13%, due to the higher costs associated with manufacturing, transportation, and packaging.
Looking ahead, Smucker's stated the pandemic, "along with cost inflation and volatility in supply chains will continue to impact financial results and cause uncertainty and risk for the fiscal year 2022."
Rising Consumer Demand
The company also saw encouraging signs of growth in a number of its food segments, most notably in its retail coffee and Away from Home sectors. Net sales in Away from Home increased $10.6 million, while U.S. Retail Coffee net sales jumped $50.4 million.
For the coffee segment, the volume/mix increased net sales by 5 percentage points, driven by the Dunkin and Café Bustelo brands.