J.M. Smucker to Take $125 Million Hit From Jif Peanut Butter Recall

By Reuters
Reuters
Reuters
June 8, 2022 Updated: June 8, 2022

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 percent 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 percent to $2.03 billion, compared with estimates of $1.98 billion.

By Deborah Sophia

Reuters