Tariffs push prices up and profits down at Smucker
JM Smucker fell in premarket trading after its fiscal Q1 results undershot Wall Street expectations.
The impact of Trump administration tariffs on the company’s retail coffee business — which includes brands like Folgers, Dunkin’, and Cafe Bustelo and is its largest revenue producer — was the issue.
Smucker was able to pass some of the tariffs on imports from coffee-producing countries like Vietnam and Brazil along to shoppers in the form of higher prices. In fact, the coffee unit’s sales of $717.2 million, up 15%, were better than Wall Street expected.
But price hikes didn’t cover all of the tariff bill, and the company swallowing a portion of those higher costs contributed to a 22% tumble in the coffee segment’s profits.
Smucker was able to pass some of the tariffs on imports from coffee-producing countries like Vietnam and Brazil along to shoppers in the form of higher prices. In fact, the coffee unit’s sales of $717.2 million, up 15%, were better than Wall Street expected.
But price hikes didn’t cover all of the tariff bill, and the company swallowing a portion of those higher costs contributed to a 22% tumble in the coffee segment’s profits.
