Sales for the quarter rose 20%, while earnings came in a bit light of analyst expectations, thanks to the residual effect of a peanut butter scare at rival ConAgra
Of course, an analysis of the fiscal year turned out to be of limited value because Smucker announced the largest acquisition in its history earlier this month. It will acquire the Folgers coffee business from Procter & Gamble
Coffee will move from zilch to account for 42% of Smucker's sales, thus eclipsing the legacy jam, baking, peanut butter, and milk businesses. Needless to say, there is quite a lot of integration risk, but there is also potential in adding a leading brand that likely wasn't receiving full attention in P&G's extensive empire. Given that Smucker's stock fell 9% on the weaker-than-expected fourth-quarter results, its appeal as an investment has definitely increased. Here's to hoping the company's appetite doesn't prove destructive to shareholder value.
For related Foolishness: