Meow Mix, Milk-Bone benefit from volume/mix in Q2

ORRVILLE, OHIO — On Nov. 26, The J.M. Smucker company shared its second quarter performance for 2025, revealing its continued efforts to perfect its pet food portfolio by homing in on brands that lead the market. 

“Profit margins in the quarter were strong for our pet portfolio driven by operational improvements from our transformation office and the winding down of our contract manufacturing agreement,” shared Mark Smucker, chair of the board, president and chief executive officer of The J.M. Smucker Company. “Our transformed portfolio continues to highlight the benefits of focusing on brands and categories where we have a leading market share position as these brands continue to deliver net sales and margin growth.”

For the three months ended Oct. 31, net sales for US Retail Pet Foods were $445.4 million, a 4% decrease from $464 million in the prior year period. This was attributed to a decrease in contract manufacturing sales related to The J.M. Smucker Company’s divested pet food brands. Excluding these sales, net sales for pet food increased 1%, largely driven by the Meow Mix and Milk-Bone brands. 

Volume/mix dropped 2% and lower net price realization decreased net sales by 2%, reflecting higher trade spend for cat food and dog snacks, according to the company. 

Segment profit was $121.4 million, a 25% increase from the prior year. The J.M. Smucker Company attributed this increase to lower costs, favorable volume/mix, and lower distribution and marketing expenses. Segment profit margin was 27.3%, an increase of 640 basis points. 

For the six months ended Oct. 31, net sales were $845.1 million, a decrease from $905 million in the prior year period. Segment profit was $236.7 million, an increase from $178.5 million in the prior year. Segment profit margin was 28%, an increase from 19.7%. 

The company’s top brands continue to be Meow Mix and Milk-Bone, both contributing positive volume/mix in the second quarter. 

In cat food, Meow Mix witnessed high-single-digit volume/mix growth during the quarter. The brand remains the No. 1 in volume share in the dry cat food space. To continue supporting Meow Mix, the company plans to refresh the brand through a new packaging launch in January. 

“This new packaging design showcases consumer-desired claims in a fresh, new way with elevated product benefits and a more modern design,” Smucker said. “We are also launching innovation at the same time that will bring the indulgence and dual texture experience out of the wet aisle and into the convenience of the dry aisle to elevate the mealtime experience for both the cat and pet parent.”

Regarding dog snacks, Milk-Bone experienced mid-single-digit volume/mix growth, primarily led by Soft and Chewy and Biscuits formats. Additionally, innovation continues to propel the brand’s growth. For example, Milk-Bone’s new Peanut Buttery Bites made with Jif peanut butter contributed to strong net sales growth in the soft and chewy treat space. 

“This launch continues to exceed our expectations, and we are excited to launch this product nationally this coming January,” Smucker detailed. “We continue to drive the humanization trend in the category. As one of the few companies with both iconic human and pet food brands, we are able to create a unique consumer experience of consumers sharing foods they love with their pets.”

Despite Milk-Bone’s success, the dog snacks category continues to see slowdowns in discretionary spending fueled by continued inflation. 

“We remain confident in our portfolio as we continue to leverage our core strengths to drive growth for the Milk-Bone brand, with its strong leadership position in the category,” Smucker said. “We continue to see near-term challenges for the Pup-Peroni brand and we are taking action to address this.”

Overall, second-quarter net sales for The J.M. Smucker Company were $2.3 billion, a 17% increase from the prior year period. Gross profit was $886.1 million, a 22% increase from the prior year. The company attributed this to favorable volume/mix, higher net price realization and decreased costs. Operating income was $169.7 million, a 43% decrease from the prior year period. 

Adjusted earnings per share was $2.76, a 7% increase from the prior year period. Cash provided by operations was $404.2 million, a significant increase from $176.9 million in the prior year. 

“Our strong second quarter performance demonstrates the strength of our categories and continued execution toward our key growth platforms,” Smucker said. “During the quarter, we delivered organic net sales and earnings growth above our expectations with strength from the Uncrustables, Meow Mix, Café Bustelo, and Jif brands.”

Additionally, The J.M. Smucker Company updated its full-year 2025 financial outlook. Net sales are expected to increase 8.5% to 9.5%, flat from previous guidance. This reflects a decline of about $100 million contract manufacturing sales related to the company’s divested pet food brands. 

Capital expenditure is expected at $450 million, flat from previous guidance. Free cash flow is expected at $875 million, flat from previous expectations. Adjusted earnings per share is expected to range from $9.70 to $10.10, slightly up from previous expectations of $9.60 to $10.

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