The J. M. Smucker Co. SJM actively pursues strategic acquisitions to increase its presence. In this regard, the corporate concluded the beforehand introduced (On Sep 11, 2023) acquisition of Hostess Brands, a premier snacking firm.
In different information, Smucker introduced the formation of a brand new strategic business space — Sweet Baked Snacks, to help its expanded model portfolio. The transfer will allow the corporate to generate synergies whereas leveraging top-notch experience in areas like advertising and marketing, innovation, provide chain administration and industrial activation.
TWNK Acquisition Holds Promise
The latest acquisition consists of TWNK’s candy baked items manufacturers like Hostess Donettes, Twinkies and DingDongs and the Voortman cookie model, amongst others. The buyout additionally has manufacturing services in Emporia, KS; Burlington, Ontario; Chicago, IL; Columbus, GA; Indianapolis, IN; and Arkadelphia, AR. Management additionally took over Hostess Brands’ distribution facility in Edgerton, KS.
The transfer enhances SJM’s potential to cater to growing shopper reliance on handy snacking choices. The acquisition of Hostess Brands aids SJM in benefiting from the fast-growing candy baked items class. The transfer permits Smucker to leverage TWNK’s expanded distribution mannequin, a powerful innovation engine and appreciable manufacturing capabilities.
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What’s More?
The Zacks Rank #3 (Hold) firm is progressing effectively with core priorities, which embody driving industrial excellence, reshaping portfolio, streamlining cost construction and unleashing its organization to win. Strength in such methods helps the corporate navigate complicated provide chain challenges.
Management has at all times been dedicated to growing its focus and assets to reshape the portfolio to realize sustainable progress throughout pet meals and pet snacks, espresso and snacking classes. On Nov 1, 2023, Smucker bought the Sahale Snacks model to Second Nature Brands to reshape the portfolio. The transfer permits the corporate to extend concentrate on the continued progress of its Consumer Foods business.
Wrapping Up
The firm has been coping with rising prices for some time. The ongoing cost inflation, supply-chain bottlenecks and the broader macroeconomic panorama proceed to have an effect on the corporate’s outcomes and trigger dangers for fiscal 2024. SJM’s shares have dropped 25.7% up to now three months in contrast with the trade’s decline of 11.5%.
That being stated, the TWNK acquisition is prone to drive The J. M. Smucker’s progress and innovation story.
3 Appetizing Picks
Lamb Weston LW, which provides frozen potato merchandise, at the moment sports activities a Zacks Rank #1 (Strong Buy). LW delivered an earnings shock of 46.2% within the final reported quarter. You can see the entire listing of right now’s Zacks #1 Rank shares right here.
The Zacks Consensus Estimate for Lamb Weston’s present financial-year gross sales and earnings suggests progress of 28.3% and 24.8%, respectively, from the year-ago reported numbers.
Flowers Foods FLO, a packaged bakery meals merchandise firm, at the moment has a Zacks Rank #2 (Buy). FLO has a trailing four-quarter earnings shock of seven.6% on common.
The Zacks Consensus Estimate for Flowers Foods’ present fiscal-year gross sales suggests progress of 6.7% from the corresponding year-ago reported determine.
The Kraft Heinz Company KHC, a meals and beverage product firm, at the moment carries a Zacks Rank #2. KHC has a trailing four-quarter earnings shock of 9.9% on common.
The Zacks Consensus Estimate for Kraft Heinz’s present fiscal yr gross sales suggests progress of 1.3% from the corresponding year-ago reported determine.
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The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Flowers Foods, Inc. (FLO) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
Lamb Weston (LW) : Free Stock Analysis Report
