ORRVILLE, OHIO — The J.M. Smucker Company battled supply chain disruptions, negatively impacting the performance of its pet food division for the third quarter. The company shared this and more in its 2025 third quarter financial results for the period ended Jan. 31.

Net sales for Smucker’s US Retail Pet Foods division were $423 million, a 9% decrease from the prior year. The company attributed this drop to a decrease for dog snacks and lower contact manufacturing sales related to its divested pet food brands, partially offset by an increase for cat food. 

Segment profit was $116.8 million, a 7% increase compared to the prior year of $109.5 million in 2024, which the company attributed to lower costs, partially offset by unfavorable volume/mix. Segment profit margin increased 410 basis points to 27.6%. 

For the nine months ended Jan. 31, net sales for the pet food division were $1.27 billion, a decrease from $1.37 billion in 2024. Segment profit was $353.5 million, a significant increase of $288 million in 2024. 

According to Mark Smucker, chair of the board, president and chief executive officer, $30 million of supply chain disruptions negatively impacted results for its Milk-Bone dog snacks and Meow Mix wet cat food. The company anticipates returning to full distribution in the fourth quarter for both brands. Additionally, Milk-Bone continues to witness “slowdowns” in discretionary spending, which Mark Smucker attributed to inflationary pressures.

“We remain confident in our portfolio as we continue to focus on driving growth for the Milk-Bone brand, with its strong leadership position in the category,” he added. “In cat food, we continue to see tailwinds as the cat population is projected to grow and anticipate further share growth for the Meow Mix brand. Dog snacks and cat food remain attractive categories, and e-commerce trends continue to be positive for our portfolio.”

Overall, net sales for the third quarter were reported at $2.19 billion, a 2% decrease from $2.23 billion in the previous year. Operating income was reported to be at a loss of $594 million, a significant decrease of $891.4 million compared to the previous year. Gross profit increased $55 million, or 7%, which Smucker attributed to higher net price realization and lower costs.

“Our third quarter performance reflects the continued execution of our strategy and ability to deliver positive results in a dynamic operating and consumer environment,” Mark Smucker said. “Net sales for the quarter would have been above our expectations, however, we experienced certain supply chain disruptions that negatively impacted results. Disciplined cost management and execution enabled us to deliver adjusted earnings per share that exceeded our expectations.”

With this in mind, the company updated its full-year 2025 financial outlook. The company now expects a net sales increase of 7.25%, compared to previous expectations between 7.5% and 8.5%. Adjusted earnings per share is now expected between $9.85 and $10.15, an increase from previous expectations. Capital expenditure is expected to be around $400 million, a decrease from the previous expectation of $450 million. 

"Our strategy and the prioritization of our key growth platforms has enabled us to deliver a strong fiscal year to date, and we are well-positioned to deliver both top- and bottom-line growth, while increasing shareholder value over time,” Mark Smucker shared.

In addition to its financials, the company announced the promotion of Judd Freitag to senior vice president and general manager of Pet and Sweet Baked Snacks, effective March 7. Freitag has been with the company for 16 years, holding several leadership positions throughout the company. He most recently served as vice president and general manager of marketing for US Retail Pet Foods. 

“Judd was instrumental in the turnaround of the pet foods segment and will play a critical role in advancing our sweet baked snacks strategy…” Mark Smucker shared. 

In addition to supporting Smucker’s pet food business, Freitag will now lead the advancement of the company’s sweet baked snacks strategy, aiming to foster growth for the Hostess brand, as well as expanding distribution, driving innovation, enhancing the portfolio and more. He succeeds Dan O’Leary. 

Smucker also announced the “decoupling” of its supply chain and manufacturing organizations to help strengthen oversight and execution. This includes the appointment of Bryan Hutson to senior vice president of information services and supply chain. Through this role, Hutson will be responsible for Smucker’s supply chain activities. Randy Day, senior vice president of operations, will continue his responsibilities within the company’s manufacturing operations.

“The promotion of Judd reflects our commitment to the Hostess brand and taking the necessary actions to return the Hostess brand to growth, while continuing to deliver the pet business,” Mark Smucker said. “In addition, we are evolving the leadership structure of our supply chain and manufacturing organizations to ensure that we remain positioned to deliver best-in-class execution across our portfolio of brands.”

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