J.M. Smucker reports strong finances but Jif peanut butter recall will hurt fiscal 2023

J.M. Smucker Co. reported a profitable fourth quarter and full fiscal year for 2022, but said the recall of its Jif peanut butter products will impact company earnings and revenue in fiscal 2023.

The Orrville maker of people food, pet food and coffee on Tuesday said it had net income of $202.1 million, or $1.87 a share, on revenue of more than $2 billion for the fourth quarter ending April 30. That compares to net income of $147 million, or $1.35 a share, on revenue of $1.9 billion a year ago.

For the full year, J.M. Smucker reported net income of $631.7 million, or $5.83 on revenue of $8 billion. That compares to net income of $876.3 million, or $7.79 per share, on revenue of $8 billion for fiscal 2021.

'Strong financial results'

"Our fourth quarter and full-year results demonstrate the continued execution of our strategy and momentum of the business, amid a challenging and dynamic environment. Our strong financial results reflect sustained consumer demand for at-home food and coffee and consumers' desire for our trusted and iconic brands," Mark Smucker, president and chief executive officer, said in a news release. "During the year, we also made significant progress in strengthening our financial position, as we reduced our debt balance, while also returning cash to our shareholders through dividends and share repurchases."

The company for fiscal 2023 will be investing in growth-focused platforms that include Uncrustables, and restocking retailers with Jif peanut butter following a recent recall, Smucker said. The Jif recall lowered total sales for the quarter by about 1%, the company said.

The company in May issued a voluntary recall of Jif peanut butter products because of possible salmonella contamination.

Jif recall to have impact

The Jif recall is expected to lower full 2023 adjusted earnings by about 90 cents, and revenue by about 2%, the company said.

J.M. Smucker said revenue for 2023 is expected to grow 3.5% to 4.5% over 2022 results, with adjusted earnings of $7.85 to $8.25 per share, including the impact of the Jif recall.

Shares on Tuesday were up $7.33, or 6%, to $130.60 as of 2:14 p.m. Shares over the past 52 weeks have ranged from a low of $118.35 to a high of $146.74.

Beacon Journal reporter Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.

This article originally appeared on Akron Beacon Journal: J.M. Smucker reports strong finances but Jif recall will hurt 2023