JBSS John B Sanfilippo and Son Inc

Second Quarter Sales Volume Increased 7.1% with Volume Growth Across all Distribution Channels.

John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) (the “Company”) today announced financial results for its fiscal 2025 second quarter ended December 26, 2024.

Second Quarter Summary

• Net sales increased $9.8 million, or 3.4%, to $301.1 million
• Sales volume increased 6.4 million pounds, or 7.1%, to 96.3 million pounds
• Gross profit decreased 9.8% to $52.3 million
• Diluted EPS decreased 29.3% to $1.16 per share

CEO Commentary

“We are pleased to report our largest quarterly sales volume and highest quarterly net sales in our company’s history in the second quarter. This achievement was driven by the second consecutive quarter of sales volume increases across all three of our distribution channels as we execute on our Long-Range Plan. Additionally, our bars sales volume increased by approximately 28% over the prior year quarter. We remain encouraged by the sales volume growth across our company and are focused on enhancing profitability through operational efficiencies and optimized pricing strategies,” stated Jeffrey T. Sanfilippo, Chief Executive Officer.

Second Quarter Results

Net Sales

Net sales for the second quarter of fiscal 2025 increased $9.8 million, or 3.4%, to $301.1 million. This increase is attributed to a 7.1% increase in sales volume (pounds sold to customers) that was partially offset by a 3.4% decrease in the weighted average sales price per pound. The decrease in the weighted average selling price primarily resulted from higher sales volume of lower priced bars, granola and private brand recipe nuts (pecans and walnuts). Additionally, strategic pricing decisions and competitive pricing pressures contributed to the overall decrease in weighted average selling prices and contributed to increased sales volume.

Sales Volume

Consumer Distribution Channel + 2.9%

• Private Brand + 4.0% The sales volume increase was driven by a 27.6% growth in bars volume due to a mass merchandising retailer returning to normalized inventory levels. In addition, sales volume increases in pecans, walnuts and snack and trail mix, mainly due to new distribution, contributed to the increase, which was partially offset by a sales volume decrease due to soft consumer demand, as well as downsized pack sizes and the discontinuation of peanut butter, all at the same mass merchandising retailer. Furthermore, this volume increase was partially offset by soft consumer demand and decreased seasonal nut and trail mix volume at another mass merchandising retailer.
• Branded* + 3.4% The sales volume increase was primarily attributable to a 3.8% increase in the sales volume of Fisher recipe nuts, mainly due to increased merchandising activity at several customers. Additionally, sales volume of Southern Style Nuts increased 11.8% driven by a return to normalized inventory levels and increased sales velocity at a club store customer.

Commercial Ingredients Distribution Channel + 1.4%

The sales volume increase was primarily driven by higher sales of peanut crushing stock to peanut oil processors and distribution to a new food service customer, partially offset by lost business to another customer.

Contract Manufacturing Distribution Channel + 55.6%

The sales volume increase was driven by increased granola volume processed in our Lakeville facility. This increase was partially offset by reduced peanut and cashews sales volume to a major customer due to soft consumer demand.

________________________

* Includes Fisher recipe nuts, Fisher snack nuts, Orchard Valley Harvest and Southern Style Nuts.

 

Gross Profit

Gross profit decreased by $5.7 million to $52.3 million mainly due to lower selling prices caused by competitive pricing pressures and strategic pricing decisions as well as higher commodity acquisition costs for most tree nuts. This decrease was partially offset by the improved profitability of bars as compared to the corresponding quarter in the prior year, in which we acquired certain snack bar assets located at Lakeville, Minnesota (the “Lakeville Acquisition”). Gross profit margin decreased to 17.4% of net sales from 19.9% in the comparable quarter of the previous year due to the reasons noted above.

Operating Expenses, net

Total operating expenses increased $2.5 million in the quarterly comparison mainly due to a one-time $2.2 million bargain purchase gain associated with the Lakeville Acquisition, which did not recur in the current quarter. Additionally, increases in freight, rent and compensation expenses contributed to the increase, which were significantly offset by decreases in incentive compensation expense and consulting and marketing expense. Total operating expenses, as a percentage of net sales, increased to 10.9% from 10.4% in the prior comparable quarter due to the reasons noted above, which was partially offset by a higher net sales base.

Inventory

The value of total inventories on hand at the end of the current second quarter increased $8.5 million, or 4.3%. The increase was mainly due to higher commodity acquisition costs for almost all major tree nuts and chocolate as well as higher on hand quantities of almonds and cashews. These increases were partially offset by decreased bars related inventory. The weighted average cost per pound of raw nut and dried fruit input stock on hand increased 33.7% year over year, mainly due higher commodity acquisition costs for almost all major tree nuts.

Six Month Results

• Net sales increased 9.9% to $577.3 million. Excluding the fiscal 2025 first quarter impact of the Lakeville Acquisition, which was completed on September 29, 2023 (the first day of our second fiscal quarter of fiscal 2024), net sales increased 2.2% to $536.8 million. The increase in net sales was primarily attributable to a 4.1% increase in sales volume, which was partially offset by a 1.9% decrease in weighted average selling price per pound.
• Sales volume increased 14.9%. Sales volume increased in all three distribution channels resulting mainly from the impact of the Lakeville Acquisition.
• Gross profit margin decreased 4.8% to 17.1% of net sales. The decrease was mainly attributable to lower selling prices due to competitive pricing pressures and strategic pricing decisions, as well as increased commodity acquisition costs for almost all major nut commodities. This was partially offset by the improved profitability of bars.
• Operating expenses were relatively unchanged at $62.4 million compared to $62.8 million in the prior year to date period.
• Diluted EPS decreased 31.4%, or $0.99 per diluted share, to $2.16.

In closing, Mr. Sanfilippo commented, “As we look ahead to the second half of fiscal 2025, we plan to complete the consolidation of our Elgin and Lakeville distribution operations into our new location in Huntley, Illinois. Additionally, we will continue to execute on our plan to add manufacturing equipment with the goal of increasing our production capabilities and increasing efficiency. This is an exciting time for our company as we execute on our future growth strategies. We are committed to creating long-term shareholder value through these strategic initiatives and continued operational excellence. I want to extend my heartfelt thanks to all our employees for their hard work and dedication, which have been instrumental in achieving these milestones.”

Conference Call

The Company will host an investor conference call and webcast on Thursday, January 30, 2025, at 10:00 a.m. Eastern (9:00 a.m. Central) to discuss these results. To participate in the call via telephone, please register using the following Participant Registration link: https://register.vevent.com/register/BI9570d6572fdf44bd8a9e9eeda859df93. Once registered, attendees will receive a dial-in number and their own unique PIN number. This call is also being webcast by Notified and can be accessed at the Company’s website at www.jbssinc.com.

About John B. Sanfilippo & Son, Inc.

Based in Elgin, Illinois, John B. Sanfilippo & Son, Inc. is a processor, packager, marketer and distributor of nut and dried fruit products, snack bars, and dried cheese snacks, that are sold under the Company’s Fisher ®, Orchard Valley Harvest ®, Squirrel Brand ®, Southern Style Nuts ® and Just the Cheese ® brand names and under a variety of private brands.

Forward Looking Statements

Some of the statements in this release are forward-looking. These forward-looking statements may be generally identified by the use of forward-looking words and phrases such as “will”, “intends”, “may”, “believes”, “anticipates”, “should” and “expects” and are based on the Company’s current expectations or beliefs concerning future events and involve risks and uncertainties. Consequently, the Company’s actual results could differ materially. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where expressly required to do so by law. Among the factors that could cause results to differ materially from current expectations are: (i) sales activity for the Company’s products, such as a decline in sales to one or more key customers, or to customers or in the nut category generally, in some or all channels, a change in product mix to lower price products, a decline in sales of private brand products or changing consumer preferences, including a shift from higher margin products to lower margin products; (ii) changes in the availability and costs of raw materials and ingredients and the impact of fixed price commitments with customers; (iii) the ability to pass on price increases to customers if commodity costs rise and the potential for a negative impact on demand for, and sales of, our products from price increases; (iv) the ability to measure and estimate bulk inventory, fluctuations in the value and quantity of the Company’s nut inventories due to fluctuations in the market prices of nuts and bulk inventory estimation adjustments, respectively; (v) the Company’s ability to appropriately respond to, or lessen the negative impact of, competitive and pricing pressures; (vi) losses associated with product recalls, product contamination, food labeling or other food safety issues, or the potential for lost sales or product liability if customers lose confidence in the safety of the Company’s products or in nuts or nut products in general, or are harmed as a result of using the Company’s products; (vii) the ability of the Company to control costs (including inflationary costs) and manage shortages or other disruptions in areas such as inputs, transportation and labor; (viii) uncertainty in economic conditions, including the potential for inflation or economic downturn leading to decreased consumer demand; (ix) the timing and occurrence (or nonoccurrence) of other transactions and events which may be subject to circumstances beyond the Company’s control; (x) the adverse effect of labor unrest or disputes, litigation and/or legal settlements, including potential unfavorable outcomes exceeding any amounts accrued; (xi) losses due to significant disruptions at any of our production or processing facilities or employee unavailability due to labor shortages; (xii) the ability to implement our Long-Range Plan, including growing our branded and private brand product sales, diversifying our product offerings (including by the launch of new products) and expanding into alternative sales channels; (xiii) technology disruptions or failures or the occurrence of cybersecurity incidents or breaches; (xiv) the inability to protect the Company’s brand value, intellectual property or avoid intellectual property disputes; (xv) our ability to manage the impacts of changing weather patterns on raw material availability due to climate change; and (xvi) our ability to operate the acquired snack bar related assets of TreeHouse and realize efficiencies and synergies from such acquisition.

 

JOHN B. SANFILIPPO & SON, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the Quarter Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

December 26, 2024

 

 

December 28, 2023

 

 

December 26, 2024

 

 

December 28, 2023

 

Net sales

 

$

301,067

 

 

$

291,222

 

 

$

577,263

 

 

$

525,327

 

Cost of sales

 

 

248,816

 

 

 

233,283

 

 

 

478,468

 

 

 

410,366

 

Gross profit

 

 

52,251

 

 

 

57,939

 

 

 

98,795

 

 

 

114,961

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling expenses

 

 

22,620

 

 

 

21,001

 

 

 

42,459

 

 

 

42,993

 

Administrative expenses

 

 

10,262

 

 

 

11,563

 

 

 

19,960

 

 

 

22,016

 

Bargain purchase gain, net

 

 

—

 

 

 

(2,226

)

 

 

—

 

 

 

(2,226

)

Total operating expenses

 

 

32,882

 

 

 

30,338

 

 

 

62,419

 

 

 

62,783

 

Income from operations

 

 

19,369

 

 

 

27,601

 

 

 

36,376

 

 

 

52,178

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

772

 

 

 

1,055

 

 

 

1,288

 

 

 

1,282

 

Rental and miscellaneous expense, net

 

 

347

 

 

 

260

 

 

 

758

 

 

 

616

 

Pension expense (excluding service costs)

 

 

361

 

 

 

350

 

 

 

722

 

 

 

700

 

Total other expense, net

 

 

1,480

 

 

 

1,665

 

 

 

2,768

 

 

 

2,598

 

Income before income taxes

 

 

17,889

 

 

 

25,936

 

 

 

33,608

 

 

 

49,580

 

Income tax expense

 

 

4,294

 

 

 

6,765

 

 

 

8,354

 

 

 

12,821

 

Net income

 

$

13,595

 

 

$

19,171

 

 

$

25,254

 

 

$

36,759

 

Basic earnings per common share

 

$

1.17

 

 

$

1.65

 

 

$

2.17

 

 

$

3.17

 

Diluted earnings per common share

 

$

1.16

 

 

$

1.64

 

 

$

2.16

 

 

$

3.15

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

— Basic

 

 

11,647,791

 

 

 

11,611,409

 

 

 

11,640,598

 

 

 

11,603,185

 

— Diluted

 

 

11,710,091

 

 

 

11,667,555

 

 

 

11,713,727

 

 

 

11,671,149

 

 

JOHN B. SANFILIPPO & SON, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

 

 

 

December 26, 2024

 

 

June 27, 2024

 

 

December 28, 2023

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

 

Cash

 

$

336

 

 

$

484

 

 

$

1,975

 

Accounts receivable, net

 

 

81,200

 

 

 

84,960

 

 

 

77,416

 

Inventories

 

 

205,842

 

 

 

196,563

 

 

 

197,335

 

Prepaid expenses and other current assets

 

 

19,320

 

 

 

12,078

 

 

 

13,040

 

 

 

 

306,698

 

 

 

294,085

 

 

 

289,766

 

 

 

 

 

 

 

 

 

 

 

PROPERTIES, NET:

 

 

174,129

 

 

 

165,094

 

 

 

161,743

 

 

 

 

 

 

 

 

 

 

 

OTHER LONG-TERM ASSETS:

 

 

 

 

 

 

 

 

 

Intangibles, net

 

 

16,807

 

 

 

17,572

 

 

 

18,334

 

Deferred income taxes

 

 

3,900

 

 

 

3,130

 

 

 

562

 

Operating lease right-of-use assets

 

 

29,019

 

 

 

27,404

 

 

 

6,867

 

Other assets

 

 

14,700

 

 

 

8,290

 

 

 

7,187

 

 

 

 

64,426

 

 

 

56,396

 

 

 

32,950

 

TOTAL ASSETS

 

$

545,253

 

 

$

515,575

 

 

$

484,459

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

 

Revolving credit facility borrowings

 

$

49,753

 

 

$

20,420

 

 

$

32,052

 

Current maturities of long-term debt

 

 

834

 

 

 

737

 

 

 

704

 

Accounts payable

 

 

64,585

 

 

 

53,436

 

 

 

62,955

 

Bank overdraft

 

 

1,953

 

 

 

545

 

 

 

1,500

 

Accrued expenses

 

 

32,937

 

 

 

50,802

 

 

 

31,080

 

 

 

 

150,062

 

 

 

125,940

 

 

 

128,291

 

 

 

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

 

 

 

 

 

Long-term debt, less current maturities

 

 

5,969

 

 

 

6,365

 

 

 

6,742

 

Retirement plan

 

 

26,773

 

 

 

26,154

 

 

 

27,338

 

Long-term operating lease liabilities

 

 

25,754

 

 

 

24,877

 

 

 

5,141

 

Other

 

 

11,064

 

 

 

9,626

 

 

 

9,710

 

 

 

 

69,560

 

 

 

67,022

 

 

 

48,931

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

 

Class A Common Stock

 

 

26

 

 

 

26

 

 

 

26

 

Common Stock

 

 

92

 

 

 

91

 

 

 

91

 

Capital in excess of par value

 

 

137,858

 

 

 

135,691

 

 

 

133,432

 

Retained earnings

 

 

187,815

 

 

 

186,965

 

 

 

175,096

 

Accumulated other comprehensive income (loss)

 

 

1,044

 

 

 

1,044

 

 

 

(204

)

Treasury stock

 

 

(1,204

)

 

 

(1,204

)

 

 

(1,204

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

325,631

 

 

 

322,613

 

 

 

307,237

 

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

 

$

545,253

 

 

$

515,575

 

 

$

484,459

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129828592/en/

Company: Frank S. Pellegrino Chief Financial Officer 847-214-4138

Investor Relations: John Beisler or Steven Hooser Three Part Advisors, LLC 817-310-8776