The J.M. Smucker’s (SJM) Newest Acquisition Expands Portfolio – November 8, 2023

The J.M. Smucker’s (SJM) Newest Acquisition Expands Portfolio – November 8, 2023


The J. M. Smucker Co. (SJM Free Report) actively pursues strategic acquisitions to increase its presence. On this regard, the corporate concluded the beforehand introduced (On Sep 11, 2023) acquisition of Hostess Manufacturers, a premier snacking firm.

In different information, Smucker introduced the formation of a brand new strategic enterprise space — Candy 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, innovation, provide chain administration and industrial activation.

TWNK Acquisition Holds Promise

The newest acquisition contains TWNK’s candy baked items manufacturers like Hostess Donettes, Twinkies and DingDongs and the Voortman cookie model, amongst others. The buyout additionally has manufacturing amenities in Emporia, KS; Burlington, Ontario; Chicago, IL; Columbus, GA; Indianapolis, IN; and Arkadelphia, AR. Administration additionally took over Hostess Manufacturers’ distribution facility in Edgerton, KS.

The transfer enhances SJM’s means to cater to rising client reliance on handy snacking choices. The acquisition of Hostess Manufacturers aids SJM in reaping rewards from the fast-growing candy baked items class. The transfer permits Smucker to leverage TWNK’s expanded distribution mannequin, a formidable innovation engine and appreciable manufacturing capabilities.

What’s Extra?

The Zacks Rank #3 (Maintain) firm is progressing nicely with core priorities, which embrace driving industrial excellence, reshaping portfolio, streamlining value construction and unleashing its group to win. Energy in such methods helps the corporate navigate complicated provide chain challenges.

Administration has all the time been dedicated to rising its focus and assets to reshape the portfolio to attain 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 Manufacturers to reshape the portfolio.  The transfer allows the corporate to extend give attention to the continued progress of its Client Meals enterprise.

Wrapping Up

The corporate has been coping with rising prices for some time. The continued value 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 business’s decline of 11.5%.

That being stated, the TWNK acquisition is more likely to drive The J. M. Smucker’s progress and innovation story.

3 Appetizing Picks

Lamb Weston (LW Free Report) , which affords frozen potato merchandise, at present sports activities a Zacks Rank #1 (Robust Purchase). LW delivered an earnings shock of 46.2% within the final reported quarter. You’ll be able to see the entire listing of in the present day’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 Meals (FLO Free Report) , a packaged bakery meals merchandise firm, at present has a Zacks Rank #2 (Purchase). FLO has a trailing four-quarter earnings shock of seven.6% on common.

The Zacks Consensus Estimate for Flowers Meals’ present fiscal-year gross sales suggests progress of 6.7% from the corresponding year-ago reported determine.

The Kraft Heinz Firm (KHC Free Report) , a meals and beverage product firm, at present 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.

5 Shares Set to Double

Every was handpicked by a Zacks skilled because the #1 favourite inventory to achieve +100% or extra in 2023. Earlier suggestions have soared +143.0%, +175.9%, +498.3% and +673.0%.

Many of the shares on this report are flying underneath Wall Avenue radar, which offers a terrific alternative to get in on the bottom ground.

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