Smucker is reporting Q1 net income of $183.6 million USD, compared with $109.8 million USD in the same period a year prior.

The maker of Folger’s, Jif peanut butter, Smucker’s jam/jellies and Milk-Bone/Meow Mix reported that net sales slipped 4% to $1.81 billion USD from $1.87 billion USD. However, when excluding the net sales from its divested pet food brands and related manufacturing and distribution costs, as well as an unfavourable foreign currency exchange, the company’s net sales actually increased by 21%.

Marketing spend for the quarter was approximately $87 million USD. As a percentage of net sales, ad spend remained relatively constant: 4.9% for the three months ending July 31, versus 5.1% for the same period in 2022. President and CEO Mark Smucker noted that the company expects total marketing expenses to be approximately 5.5% of net sales going forward.

According to Smucker, consumer demand for its brands combined with its “focus on execution, increased marketing investments and disciplined cost management, drove double-digit comparable sales and earnings growth in the quarter.”

Net sales for the International operating segment – which includes Canada – increased 24% on a comparable basis, primarily driven by Jif peanut butter, coffee products like Folgers and Uncrustables sandwiches, which recently launched north of the border.

“We expect our strong momentum in coffee to continue, as we increase marketing investments behind our brands and pass through a moderation in commodity costs that will provide consumers with increased value and some relief from inflation,” Smucker says.

International and Away From Home segment profit increased 119%, reflecting favorable volume/mix, primarily due to the favorable impact of lapping the Jif peanut butter product recall in the prior year, and a favorable net impact of higher net price realization and increased costs.

As Smucker pointed out, peanut butter is an attractive category, as consumers are increasingly seeking affordable sources of protein.

“Our strong market share performance reflects the ongoing and incremental marketing investments in our brands and serves as a testament to the success of our commercial model,” Smucker stated.

Gains in the pet category were led by “strong growth” for Meow Mix cat food and Milk-Bone dog snacks. The Milk-Bone brand, Smucker says, continues to drive growth through core offerings and premium positioned innovation.