The J. M. Smucker Company Q3 FY2026 earnings call

• Engagement with Elliott is constructive, focusing on operating improvements, portfolio management, disciplined capital allocation, and governance. - For Sweet Bake Snacks, focus on stabilizing the brand, strengthening portfolio, improving operations, and prudent investments. - Bruce Chung's M&A background is seen as beneficial for portfolio review. - Innovation is performing well across various segments. - Prudent management of spending and efficiencies affecting SDNA. - Distribution and marketing spending had timing and savings in third quarter but top-line softness from fire is muting some savings

Pet segment: MeowMix continues growth with 5% top-line growth in the quarter, Milk Bone started to grow again supported by base biscuits and innovation with peanut buttery bites platform; tail of pet business (Pepperoni and Canine Carryout) is soft. Sweet Bake Snacks: Top line below expectations due to category trends and higher bakery network cost; fourth quarter will absorb impact of February fire; long-term sales growth target revised to 2%; hostess trademark amortization started with full-year outlook of $210 million. Coffee portfolio: Outlook is positive with deflation benefiting profit and margin, mid-20s segment profit margin expected in fourth quarter of current fiscal year, lapping $75 million unmitigated tariff impact next fiscal year, elasticities came in better than anticipated in third quarter

• DPS guide remains wide with confidence in the midpoint as coffee portfolio covers softness in sweet baked snacks. - SDNA is flat to slightly down due to efficiencies and prudent spending. - Coffee tariff impact: $75 million unmitigated tariff headwind in current fiscal year will be lapped next fiscal year; elasticities came in better than anticipated in third quarter and prudent approach to forecasting continues in fourth quarter

• Category trends and operational challenges in Sweet Bake Snacks, including timing of operational efficiencies and promotional activity, and impact of plant fire. - Potential impact of retail inventory dynamics on coffee business (though not seen abnormalities yet). - Uncertainties around deflation impact on pricing and elasticity forecasting

• Q: Curious about common ground and opportunities with Elliott, and on Sweet Bake Snacks' promotional strategy and learning.

A: Constructive engagement with Elliott on operating improvements, portfolio management, etc.; focusing on stabilizing Sweet Bake Snacks, strengthening portfolio, improving operations. - Q: Dovetailing on Bruce Chung's M&A experience and portfolio reshaping, use of proceeds.

A: Confident in Bruce's financial acumen, continue reviewing portfolio, historically used proceeds from divestitures for debt pay down or share repurchase. - Q: On coffee pricing strategy between ground coffee and single serve pods.

A: Early to talk about deflation's pricing implication, roasting ground has greater coffee percentage in can. - Q: On Hostess and Sweet Bake Snacks talent, capabilities, and weakness.

A: Confident in team, navigating category dynamics and operational challenges, through Indy closure. - Q: On Sweet Bake Snacks third quarter weakness drivers and fiscal 27 outlook.

A: Top line below expectations due to category trends and higher bakery network cost; early to lean into fiscal 27 outlook. - Q: On coffee tariff headwind and elasticity impact.

A: $75 million unmitigated tariff impact lapped next fiscal year; elasticities better than anticipated in third quarter. - Q: On Sweet Bake Snacks organic sales gap and fiscal 27 ring fencing.

A: Timing around operational efficiencies and promotional activity; hard to communicate top-line trajectory but building profitability. - Q: On pet segment performance.

A: Pleased with pet performance, MeowMix growing, Milk Bone starting to grow. - Q: On Sweet Bake Snacks profit margin and Uncrustables.

A: Team advancing stabilization journey for profit; Uncrustables growing, distribution gains in away-from-home and C-store. - Q: On DPS guide and SDNA.

A: Maintaining prudence, confident in midpoint; SDNA driven by efficiencies and prudent spending. - Q: On FD&A line and innovation pace.

A: Third quarter had savings and timing, nothing substantial in fourth quarter savings; innovation performing well, in line with desired proportion. - Q: On dog snack category rebound and Uncrustables distribution and innovation.

A: Dog snack category growing due to humanization and premiumization; Uncrustables distribution expanded, growth driven by innovation. - Q: On sweet baked snacks hostess trademark amortization.

A: Slowed growth rate led to starting amortizing brand over longer period, full-year amortization outlook $210 million