Hormel has said it expects the planned sale of its whole-bird turkey business to dent annual net sales by about $50 million, but minimally impact income for the period.

The group recently agreed to offload the unit to Minnesota-based Life-Science Innovations, although it has not yet provided any financial details on the transaction. The deal is expected to close in the second quarter of Hormel’s current fiscal year.

Hormel, whose brands include Skippy peanut butter and Spam lunch meats, added that guidance around the agreement does not reflect any items that are unknown at this time, “including the impacts of gains/losses on the transaction that we are unable to reasonably estimate while evaluating the accounting implications.”

President John Ghingo said the move, which comes after the sale of Hormel’s majority interest in Justin’s branded business of nut butters and organic chocolate snacks, is part of a broader portfolio shift to focus on protein offerings.

Ghingo said Hormel’s Jennie-O ground turkey brand remains a “strategic” portion of the business, and the LSI deal allows for accelerated growth in “value-added turkey categories where we have a clear consumer advantage.”

Hormel has been grappling with an uptick in raw material input costs as well as higher logistics expenses, weighing on profit at its key retail segment. A recent strain of bird flu hit the chicken supply chain last year, while U.S. tariffs on Brazil have contributed to an uptick in beef prices.

In response, Hormel has, along with rival Tyson Foods, raised prices for osme products.

Group-wide net sales grew by 1.3% to $3.03 billion. Wall Street expectations had seen the figure at $3.07 billion.

Adjusted earnings per share stood at $0.35, compared to $0.35 a year prior and Bloomberg consensus estimates of $0.32.

Shares of Hormel were lower in premarket U.S. trading on Thursday.