J M Smucker Co (NYSE:SJM) stock fell 1.55% (As on June 8, 12:34:18 AM UTC-4, Source: Google Finance) after the company 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. Net income increased 37% to $202.1 million. JM Smucker posted sales growth across all its segments, on a reported basis, except for US Retail Consumer Foods where sales fell 5% due to the Jif peanut butter recall. Brands that are growing or maintaining dollar share accounted for 86% of its US Retail business in Q4, up from 57% in the prior-year period. The US Retail Pet Foods segment benefited from double-digit growth in cat food and single-digit growth in both dog food and dog snacks. Within Pet Food, the Meow Mix brand gained nearly 3 points of share in Q4, growing over two times the category rate. In dog food, sales for the Nutrish brand grew 14%. SJM is seeing strong momentum in its coffee portfolio as pandemic-fueled coffee habits continue and at-home coffee consumption remains high. In Q4, the company saw sales growth for its Café Bustelo, Dunkin and Folgers brands. Sales growth in the Consumer Foods business was driven by gains in Smuckers fruit spreads, Uncrustables frozen sandwiches and Sahale snacks. Total net sales for Uncrustables was approx. $130 million in Q4 for the combined US Retail and Away From Home businesses and SJM believes it can grow to a $1 billion brand in annual net sales over the next five years. The International and Away From Home segment recorded 12% sales growth in the quarter. The company had reported the adjusted revenue growth of 6 percent to $2.03 billion in the fourth quarter of FY 22.

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

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