The J.M. Smucker's Coffee Business Surges: Is Growth Durable?

SJM's coffee business drove fiscal Q3 sales as price increases held and Cafe Bustelo surged, supporting top-line performance. However, higher input costs and softer overall volumes compressed margins and are testing the durability of profits, leaving a mixed near-term outlook for earnings.

Analysis

SJM's coffee business drove fiscal Q3 sales as price increases held and Cafe Bustelo surged, supporting top-line performance. However, higher input costs and softer overall volumes compressed margins and are testing the durability of profits, leaving a mixed near-term outlook for earnings.