J M Smucker Co (NYSE:SJM) stock fell 2.49% (As on March 1, 11:09:00 AM UTC-4, Source: Google Finance) after the company posts inline sales for the third quarter of FY 23. Strong top-line growth in the company’s coffee and pet food businesses combined with robust growth in the Uncrustables brand led sales and earnings higher. Gross profit increased $72.7 million, or 11 percent.

SJM in the third quarter of FY 23 has reported the adjusted earnings per share of $2.21, beating the analysts’ estimates for the adjusted earnings per share of $2.13. The company had reported the adjusted revenue growth of 7.7 percent to $2.22 billion in the third quarter of FY 23, which is inline with the analysts’ estimates for revenue of $2.22 billion. The increase in comparable net sales was driven by a 15 percentage point increase from net price realization, primarily reflecting list price increases for each of the Company’s U.S. Retail segments and for International and Away from Home, partially offset by a 4 percentage point decrease from volume/mix primarily driven by the U.S. Retail Coffee segment.

Smucker said its full-year net sales are expected to increase approximately 6% compared to the prior-year forecast of 5.5% to 6.5%. Adjusted earnings per share guidance was raised, to $8.55 to $8.75, up from an earlier forecast of $8.35 to $8.75.

Meanwhile, the company has entered into a definitive agreement to sell several pet food brands to Post Holdings, Inc., a consumer-packaged goods holding company headquartered in St. Louis, Missouri. The transaction is valued at approximately $1.2 billion, consisting of $700 million in cash and approximately 5.39 million shares of common stock of Post Holdings, Inc. The transaction includes the Rachael Ray Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe, and Gravy Train brands as well as the Company’s private label pet food business. The transaction includes relevant trademarks and licenses, and the Company’s manufacturing and distribution facilities in Bloomsburg, Pennsylvania, as well as its manufacturing facilities in Meadville, Pennsylvania and Lawrence, Kansas. The Company expects these brands to generate net sales of approximately $1.5 billion for the fiscal year ended April 30, 2023, which are primarily reported in the U.S. Retail Pet Foods segment. The Company expects the divestiture to be dilutive to its adjusted earnings per share by approximately $0.45 on a full-year basis. The Company anticipates replacing the divested earnings through the deployment of transaction proceeds and mitigating the impact of stranded overhead costs through initiatives within its Transformation Office over time. The transaction is anticipated to close in the fourth quarter of the Company’s current fiscal year ending April 30, 2023, subject to closing conditions including the receipt of required regulatory approvals.