US-based food company J. M. Smucker has reported that its net earnings increased by 25% to $130.3m for the fourth quarter of 2013 , compared with $104.1m for the same quarter in 2012, reflecting higher margins, despite a slight decline in net sales.
For the quarter ended 30 April 2013, net sales decreased 1% to $1.33bn, compared with $1.35bn for the same period in the previous year, mainly due to a 5% decrease in net price realization reflecting price declines taken earlier in fiscal 2013, especially on coffee and peanut butter.
Gross profit increased by 7% to $29.9m due to favorable mix, lower manufacturing overhead driven by decreased costs and higher production volume, and an increase in sales volume.
J. M. Smucker chief executive officer Richard Smucker said that the record results were achieved while also making significant investments toward the company's future growth and creating value for shareholders.
"In 2013, we increased the annual dividend paid per share by nine percent, while also repurchasing nearly four percent of our shares."
J. M. Smucker president and chief operating officer Vince Byrd said: "Our fourth quarter results reflect the sustained momentum realized across our business, particularly in key categories such as coffee, peanut butter, and fruit spreads."
For the full-year, the company reported 18% rise in net earnings to $544.2m, compared with $459.7m in 2012, net sales increased 7% to $5.8bn, compared with $5.5bn a year ago.
For fiscal 2014, the company expects net sales to be comparable to 2013 reflecting the full-year impact of price declines taken in 2013 and rationalization of products and expected volume growth in key categories and non-GAAP net income per diluted share to be in the range of $5.65 to $5.75.
