J.M. Smucker to take $125 million hit from Jif peanut butter recall
2022.06.07 15:06
FILE PHOTO: Smucker’s Goober Strawberry and Jif peanut butter, brands owned by The J.M. Smucker Company, are seen for sale in a store in Manhattan, New York City, U.S., November 22, 2021. REUTERS/Andrew Kelly
(Reuters) – J.M. Smucker Co on Tuesday warned of a $125 million hit in the full year from the recall of certain Jif peanut butter products following possible salmonella contamination.
The recall would also have a 90 cent impact on the Folgers coffee maker’s profit, the Ohio-based company said, sending its shares down 3% in premarket trading.
Late in May, J.M. Smucker said it was recalling nearly 50 types of Jif peanut butter products sold in the United States after a Food and Drug Administration investigation into a multistate outbreak of Salmonella Senftenberg infections.
Manufacturing downtime, customer returns and unsaleable inventory resulting from the recall are expected to result in the $125 million hit in fiscal 2023.
The company expects adjusted earnings per share to range from $7.85 to $8.25 in fiscal year 2023, compared with analysts’ estimates of $8.91 per share, according to Refinitiv IBES.
For the fourth quarter ended April 30, net sales rose 6% to $2.03 billion, compared with estimates of $1.98 billion.
