ORRVILLE, OHIO — Net sales within the US Retail Consumer Foods segment of the J.M. Smucker Co. increased 49% in the first quarter ended July 31 as distribution of the Uncrustables brand expanded into other categories and the Jif peanut butter brand lapped a product recall.

Orrville-based J.M. Smucker had net income of $184 million, or $1.79 per share on the common stock, which was up 74% from $110 million, or $1.03 per share, in the previous year’s first quarter. The company increased its fiscal-year outlook for adjusted earnings per share to $9.45 to $9.85 from a previous outlook of $9.20 to $9.60.

Net sales decreased 4% to $1.81 billion from $1.87 billion. Excluding the divestiture of certain pet food brands and the negative impact of foreign currency exchange, net sales increased 21%. A favorable impact of 9% came from Jif peanut butter. A percentage-point increase of 13% came from volume/mix.

In US Retail Consumer Foods, net sales increased to $464 million from $311 million in the previous year’s first quarter. Volume/mix, primarily driven by Jif peanut butter and Smuckers Uncrustables, increased net sales by 28 percentage points. Net price increased net sales by 22 percentage points.

Net sales for Uncrustables frozen sandwiches rose 11% in the quarter, primarily driven by volume/mix growth in the double-digit percentages.

“Total company net sales of Uncrustables sandwiches were approximately $180 million,” said Mark T. Smucker, president and chief executive officer, in pre-recorded comments issued Aug. 29. “We anticipate the rate of growth to accelerate for the balance of the fiscal year as the total brand is expected to grow net sales of approximately 20% for the full year to over $800 million.

“This growth will be supported by our initiatives to turn on demand drivers to further increase household penetration, including advertising and in-store activations.”

Smucker expanded distribution of Uncrustables into convenience stores and other grab-and-go immediate consumption foodservice locations, Mr. Smucker said. In an Aug. 29 earnings call, he said Uncrustables has found “great customer acceptance” in Canada.  

Smucker in May 2022 initiated a voluntary recall of select Jif peanut butter products manufactured at its Lexington, Ky., facility. Manufacturing resumed in June 2022. Jif in the first quarter of the current fiscal year regained its spot as the No. 1 peanut butter brand in household penetration and in dollar, unit and volume share, Mr. Smucker said.

In US Retail Coffee, first-quarter net sales increased 5% to $625 million from $598 million.

“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,” Mr. Smucker said.

Cafe Bustelo net sales increased 22%, and the brand’s volume/mix was up 19%.

“Cafe Bustelo is the fastest-growing national brand in the mainstream, one-cup and instant categories with consumer takeaway up 18% in the quarter,” Mr. Smucker said. “Cafe Bustelo also captured more share growth than any other leading brand in both dollars and volume during the quarter.”

Net sales for Folgers increased 6%, and Dunkin’ also achieved dollar and volume growth.

“Price gaps to competitors have continued to narrow, and planned promotional investments supported volume growth as the recent premium category trade down dynamic has moderated,” Mr. Smucker said. “We expect continued volume growth for the Dunkin' brand supported by our recently announced price decline.”

In US Pet Food, net sales fell 40% to $441 million from $729 million. Excluding the non-comparable impact of the divested brands, net sales increased 22%.