Coffee Price Volatility Undercuts J.M. Smucker Quarterly Profits

A drop in retail coffee prices hurt J.M. Smucker over its year-ending quarter, eating into profits and total revenue. Reporting before the bell Thursday, the food products company recorded unadjusted fourth-quarter profits 9% lower than a year earlier to $1.16 a share. However, headwinds in that segment were mostly priced into analysts' estimates of $1.14 a share. Revenue of $1.22 fell 8% from a year earlier, mainly dragged on by a 12% drop in sales and 10% decrease in profits in its retail coffee segment. That drop was even as total volume of coffee products sold increased 1%. Earlier in the year, Smucker passed lower green coffee costs onto customers by cutting prices.