Max Gumport's questions to J M SMUCKER (SJM) leadership • Q1 2026
Question
Max Gumport of BNP Paribas sought to reconcile the updated coffee assumptions, asking why the segment's profit outlook remains stable despite worse-than-expected volume impacts. He also requested more color on the company's GLP-1 research, questioning why no impact is being seen if the drugs are known to reduce food consumption.
Answer
CFO Tucker Marshall clarified the coffee financials, explaining that a $0.20 EPS benefit from better-than-expected elasticity was offset by a new $0.25 EPS headwind from increased tariffs, effectively bringing the segment's profit back to its original plan. CEO Mark Smucker added that GLP-1 research shows no impact because categories like coffee and pet are unaffected, while indulgent snacks like Hostess are still consumed as small rewards, a trend supported by continued consumer snacking habits.