JM Smucker raised its full-year net sales forecast after a strong fiscal first quarter, with net sales expected to grow 3-5%. Despite a 1% decrease in net sales to $2.11bn, the company’s gross profit fell 40% to $474.7m due to high commodity costs. Operating income declined by 87% to $45.6m.

The company’s CEO, Mark Smucker, highlighted the positive momentum of the business and the agility of its teams. JM Smucker kept its forecast for annual adjusted earnings per share unchanged at $8.50-9.50. However, the share price fell in pre-market trading due to the outlook for adjusted EPS.

In June, JM Smucker announced plans to “narrow its priorities” in the sweet snacks division after recording impairment charges of $980m. The company acquired Hostess Brands two years ago in a $5.6bn deal, which has since faced questions on Wall Street. Additionally, the sale of the Voortman business raised concerns among analysts.

The first-quarter results showed a 24% drop in net sales from the sweet-baked snacks division to $253.2m. Excluding assets sold, net sales fell 10% with volume/mix declining by 8%. Net sales from the US retail pet foods and US frozen handheld and spreads divisions also decreased, while the US retail coffee business unit saw a 15% increase in net sales.

JM Smucker remains focused on investing in key growth platforms to deliver long-term growth and increase shareholder value. The company’s sustained momentum led to the decision to raise net sales expectations for the fiscal year.

Read more at Yahoo Finance: JM Smucker lifts FY sales forecast