J.M. Smucker to take $125 million hit from Jif peanut butter recall

Smucker’s Goober Strawberry and Jif peanut butter, manufacturers owned by The J.M. Smucker Firm, are seen on the market in a retailer in Manhattan, New York Metropolis, U.S., November 22, 2021. REUTERS/Andrew Kelly

June 7 (Reuters) – J.M. Smucker Co (SJM.N) on Tuesday warned of a $125 million hit within the full 12 months from the recall of sure Jif peanut butter merchandise following doable salmonella contamination.

The recall would even have a 90 cent influence on the Folgers espresso maker’s revenue, the Ohio-based firm stated, sending its shares down 3% in premarket buying and selling.

Late in Could, J.M. Smucker stated it was recalling almost 50 kinds of Jif peanut butter merchandise bought in the US after a Meals and Drug Administration investigation right into a multistate outbreak of Salmonella Senftenberg infections. (https://bit.ly/3mnAjdu)

Manufacturing downtime, buyer returns and unsaleable stock ensuing from the recall are anticipated to consequence within the $125 million hit in fiscal 2023.

The corporate expects adjusted earnings per share to vary from $7.85 to $8.25 in fiscal 12 months 2023, in contrast with analysts’ estimates of $8.91 per share, based on Refinitiv IBES.

For the fourth quarter ended April 30, web gross sales rose 6% to $2.03 billion, in contrast with estimates of $1.98 billion.

Reporting by Deborah Sophia in Bengaluru; Enhancing by Devika Syamnath

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