J M SMUCKER Co 10-K form for the fiscal year ended 2022-04-30, page 28: 
Results of Operations


This discussion and analysis deals with comparisons of material changes in the consolidated financial statements for the years ended April 30, 2022 and 2021. For the comparisons of the years ended April 30, 2021 and 2020, see the Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our 2021 Annual Report on Form 10-K.
|    |                                                 |                      |         |      |      |                      |         |      |    |
|---:|:------------------------------------------------|:---------------------|:--------|:-----|:-----|:---------------------|:--------|:-----|:---|
|  1 |                                                 | Year Ended April 30, |         |      |      |                      |         |      |    |
|  2 |                                                 | 2022                 |         | 2021 |      | % Increase(Decrease) |         |      |    |
|  3 | Net sales                                       | $                    | 7,998.9 |      |      | $                    | 8,002.7 | -    | %  |
|  4 | Gross profit                                    | $                    | 2,700.7 |      |      | $                    | 3,138.7 | (14) |    |
|  5 | % of net sales                                  | 33.8                 | %       |      | 39.2 | %                    |         |      |    |
|  6 | Operating income                                | $                    | 1,023.8 |      |      | $                    | 1,386.8 | (26) |    |
|  7 | % of net sales                                  | 12.8                 | %       |      | 17.3 | %                    |         |      |    |
|  8 | Net income:                                     |                      |         |      |      |                      |         |      |    |
|  9 | Net income                                      | $                    | 631.7   |      |      | $                    | 876.3   | (28) |    |
| 10 | Net income per common share – assuming dilution | $                    | 5.83    |      |      | $                    | 7.79    | (25) |    |
| 11 | Adjusted gross profit (A)                       | $                    | 2,744.6 |      |      | $                    | 3,048.5 | (10) |    |
| 12 | % of net sales                                  | 34.3                 | %       |      | 38.1 | %                    |         |      |    |
| 13 | Adjusted operating income (A)                   | $                    | 1,440.1 |      |      | $                    | 1,528.8 | (6)  |    |
| 14 | % of net sales                                  | 18.0                 | %       |      | 19.1 | %                    |         |      |    |
| 15 | Adjusted income: (A)                            |                      |         |      |      |                      |         |      |    |
| 16 | Income                                          | $                    | 962.2   |      |      | $                    | 1,025.0 | (6)  |    |
| 17 | Earnings per share – assuming dilution          | $                    | 8.88    |      |      | $                    | 9.12    | (3)  |    |
(A)We use non-GAAP financial measures to evaluate our performance. Refer to "Non-GAAP Financial Measures" in this discussion and analysis for a reconciliation to the comparable generally accepted accounting principles ("GAAP") financial measure.

Net Sales
|    |                                                                    |                      |         |      |         |                     |         |        |    |       |    |    |
|---:|:-------------------------------------------------------------------|:---------------------|:--------|:-----|:--------|:--------------------|:--------|:-------|:---|:------|:---|:---|
|  1 |                                                                    | Year Ended April 30, |         |      |         |                     |         |        |    |       |    |    |
|  2 |                                                                    | 2022                 |         | 2021 |         | Increase (Decrease) |         | %      |    |       |    |    |
|  3 | Net sales                                                          | $                    | 7,998.9 |      |         | $                   | 8,002.7 |        | $  | (3.8) | -  | %  |
|  4 | Crisco divestiture                                                 | -                    |         |      | (198.9) |                     |         | 198.9  |    | 2     |    |    |
|  5 | Natural Balance divestiture                                        | -                    |         |      | (156.7) |                     |         | 156.7  |    | 2     |    |    |
|  6 | Private label dry pet food divestiture                             | -                    |         |      | (40.7)  |                     |         | 40.7   |    | 1     |    |    |
|  7 | Natural beverage and grains divestiture                            | -                    |         |      | (35.5)  |                     |         | 35.5   |    | -     |    |    |
|  8 | Foreign currency exchange                                          | (17.1)               |         |      | -       |                     |         | (17.1) |    | -     |    |    |
|  9 | Net sales excluding divestitures and foreign currency exchange (A) | $                    | 7,981.8 |      |         | $                   | 7,570.9 |        | $  | 410.9 | 5  | %  |
Amounts may not add due to rounding.
(A)Net sales excluding divestitures and foreign currency exchange is a non-GAAP financial measure used to evaluate performance internally. This measure provides useful information to investors because it enables comparison of results on a year-over-year basis. 
Net sales in 2022 was comparable to the prior year, which includes $431.8 of noncomparable net sales in the prior year related to divestitures. Net sales excluding divestitures and foreign currency exchange increased $410.9, or 5 percent, which was primarily due to higher net price realization across each of our U.S. Retail segments and for International and Away From Home, reflecting list price increases during 2022.
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Question: What does the Gross Profit Margin for JM Smucker in 2022 indicate about its efficiency in managing production and procurement costs relative to revenue generation?
Answer: The Gross Profit Margin for JM Smucker in 2022 was 33.8%, compared to 39.2% in 2021. This decline was primarily due to higher costs driven by inflationary pressures across commodities, packaging, transportation, and manufacturing. The unfavorable impact of unsaleable inventory and estimated customer returns related to the Jif peanut butter recall also contributed significantly to the gross profit reduction. Additionally, increased operating inefficiencies amidst supply chain challenges exacerbated the situation​