J.M. Smucker expects to take $125M loss over Jif peanut butter recall

J.M. Smucker Co. revealed on Tuesday, June 7, that it could be hit with a $125 million loss in the full year due to the recent recall of products under the Jif peanut butter brand. Many of the variants of the popular spread have been recalled due to possible salmonella contamination.

As per Reuters, the Jif recall will affect J.M. Smuckers' profit by some percentage. With this news, the company's shares were said to have plunged three percent in the premarket trading.

The American food manufacturer headquartered in Orrville, Ohio, issued a voluntary recall in late May. The company listed almost 50 kinds of Jif peanut butter products that were mostly sold in the United States.

The recall was announced after the U.S. Food and Drug Administration launched a probe on Salmonella Senftenberg infections that were reported in various states. It was later reported that an outbreak occurred in multiple states, and it is being investigated by the USFDA and the Centers for Disease Control (CDC) if the Jif peanut butter products caused the infections.

During the recent company earnings call, J.M. Smucker's president and CEO said that they are working with the health agencies to get its plant in Lexington to operate normally again. The company's production facility in Memphis, Tennessee, continues to make Jif Peanut Butter spreads, but it still needs to open its other plant now to recapture some losses.

In any case, J.M. Smucker said that it is committed to the safety of the consumers and will make sure that its facilities will comply with the requirements of food and health regulators.

"Looking ahead to the fiscal year 2023, we are focused on continuing the momentum of the business, investing in growth focused platforms such as Uncrustables, partnering with retailers to restock Jif products following the recent recall, and supporting our talented employees who are instrumental to our success," Mark Timothy Smucker, J.M. Smucker's chief executive officer, said in a press release as the company remained optimistic despite the loss brought about by the recall.

He went on to say, "With strong underlying momentum across our portfolio of brands, we remain confident in our ability to execute our strategic priorities and support long-term shareholder value creation."