J.M. Smucker Co. (SJM) reported a net loss of $662.3 million, or $6.22 per diluted share, in the fiscal third quarter ended January 31, 2025, primarily due to noncash impairment charges of $1.0 billion related to the goodwill of the Sweet Baked Snacks reporting unit and the Hostess brand indefinite-lived trademark.

However, on an adjusted basis, the company reported earnings of $2.61 per diluted share, surpassing analysts' expectations of $2.37 per share. This increase of 5% from the prior year was driven by disciplined cost management and execution, despite challenges in the operating environment.

Net sales for the quarter declined 2% to $2.19 billion, falling short of the estimated $2.22 billion. The decrease was primarily due to a 5 percentage point decline in volume/mix, reflecting lower sales of coffee, dog snacks, and contract manufacturing sales related to divested pet food brands. This was partially offset by a 3 percentage point increase in net price realization, mainly driven by higher pricing for coffee.

The company updated its full-year fiscal 2025 guidance, lowering its expected net sales growth to 7.25% from the previous range of 7.5% to 8.5%. However, it raised its adjusted earnings per share outlook to $9.85 to $10.15 from the previous range of $9.70 to $10.10, reflecting the company's ability to manage costs effectively.