http://www.morningstar.com/earnings/45295676-jm-smucker-co-sjm-q2-2013.aspx

J.M. Smucker Co. SJM
Q2 2013 Earnings Call Transcript

Transcript Call Date 11/16/2012

Operator: Good morning and welcome to The J. M. Smucker Company's Second Quarter 2013 Earnings Conference Call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode. At the request of the Company, we will open the conference for questions and answers after the presentation. Please limit yourself to two initial questions during the Q&A session and re-queue if you then have additional questions.

I will now turn the conference over to Sonal Robinson, Vice President of Investor Relations. Please go ahead, Ms. Robinson.

Sonal Robinson - VP, IR: Good morning, everyone, and welcome to our second quarter earnings conference call. Thank you for joining us today.

On the call with me are Richard Smucker, Chief Executive Officer; Vince Byrd, President and Chief Operating Officer; Mark Belgya, Chief Financial Officer; Steve Oakland, President, International, Foodservice and Natural Foods; Mark Smucker, President, U.S. Retail Coffee and Paul Smucker Wagstaff, President, U.S. Retail Consumer Foods.

Following this introduction, I will turn the call over to Richard for opening remarks. Vince will then provide an update on our business segments, and Mark will close with additional comments on our financial results for the quarter and our outlook for the full year.

During the call today, we may make forward-looking statements that reflect the Company's current expectations about future plans and performance. These forward-looking statements rely on a number of assumptions and estimates and actual results may differ materially due to risks and uncertainties. I encourage you to read the full disclosure statement and the press release concerning forward-looking statements.

Let me also remind you that the Company uses non-GAAP results for the purpose of evaluating performance internally. Additional discussion on non-GAAP information is detailed in our press release located on our website at smuckers.com. A replay of this call will also be available on the website. If you have any follow-up questions or comments after today's call, please contact me or Mark Belgya.

I will now turn the call over to Richard.

Richard K. Smucker - CEO: Thank you, Sonal. Good morning, everyone, and thank you for joining us. We are pleased to have delivered another solid quarter of sales and earnings growth. Let me summarize some of the key highlights.

Net sales increased 8% reaching a record level for the quarter, with an acquisition and new products being significant contributors to top line gains. Looking at a quick snapshot of our three segments.

First coffee achieved 6% volume growth for the quarter driven by the Folgers, Dunkin' Donuts and Cafe Bustelo brands. In addition sales for our K-Cup business, nearly doubled year-over-year, while our other new product coffee launches continued to gain good customer acceptance. Consumer foods net sales were up slightly but volume was down impacted by the prior year buy-in of Jif peanut butter in anticipation of last year's price increases also affecting volume was the planned cake mix downsizing in the baking business.

Read our Earnings Call Transcript disclaimer.
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