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John B. Sanfilippo & Son, Inc. Reports Fiscal 2025 First Quarter Results

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John B. Sanfilippo & Son (NASDAQ: JBSS) reported mixed fiscal 2025 first quarter results. Sales volume increased 24.5% to 91.2 million pounds, while net sales rose 18.0% to $276.2 million, primarily driven by the Lakeville Acquisition. However, gross profit declined 18.4% to $46.5 million, and diluted EPS decreased 33.8% to $1.00 per share.

The consumer distribution channel showed strong growth, with sales volume up 30.8%. The company faced challenges from increasing commodity costs and a one-time concession to a snack bar customer due to capacity constraints at the Lakeville facility, though these constraints have been resolved.

John B. Sanfilippo & Son (NASDAQ: JBSS) ha riportato risultati misti per il primo trimestre fiscale 2025. Il volume delle vendite è aumentato del 24,5%, raggiungendo 91,2 milioni di libbre, mentre le vendite nette sono cresciute del 18,0%, toccando $276,2 milioni, principalmente grazie all'acquisizione di Lakeville. Tuttavia, il profitto lordo è diminuito del 18,4%, scendendo a $46,5 milioni, e l'EPS diluito è calato del 33,8%, arrivando a $1,00 per azione.

Il canale di distribuzione al consumatore ha mostrato una forte crescita, con un aumento del volume delle vendite del 30,8%. L'azienda ha affrontato sfide a causa dell'aumento dei costi delle materie prime e di una concessione temporanea a un cliente di barrette snack a causa di limitazioni di capacità presso lo stabilimento di Lakeville, sebbene queste limitazioni siano state risolte.

John B. Sanfilippo & Son (NASDAQ: JBSS) informó resultados mixtos para el primer trimestre fiscal de 2025. El volumen de ventas aumentó un 24.5% alcanzando 91.2 millones de libras, mientras que las ventas netas subieron un 18.0% a $276.2 millones, impulsadas principalmente por la adquisición de Lakeville. Sin embargo, el beneficio bruto disminuyó un 18.4% a $46.5 millones, y las ganancias por acción diluidas cayeron un 33.8% a $1.00 por acción.

El canal de distribución al consumidor mostró un fuerte crecimiento, con un aumento del 30.8% en el volumen de ventas. La compañía enfrentó desafíos debido al aumento de los costos de las materias primas y una concesión única a un cliente de barras de snacks debido a limitaciones de capacidad en la instalación de Lakeville, aunque estas limitaciones han sido resueltas.

존 B. 샌필리포 & 아들 (NASDAQ: JBSS)는 2025 회계연도 첫 분기에 대한 혼합된 실적을 발표했습니다. 판매량은 24.5% 증가하여 9120만 파운드에 달했고, 순매출은 18.0% 상승하여 $276.2 백만에 이르렀으며, 이는 주로 레이크빌 인수 덕분입니다. 하지만, 총 이익은 18.4% 감소하여 $4650만으로 줄었고, 희석된 주당 순이익(EPS)은 33.8% 감소하여 주당 $1.00로 떨어졌습니다.

소비자 유통 채널은 판매량이 30.8% 증가하며 강력한 성장을 보였습니다. 회사는 원자재 비용 상승과 레이크빌 공장의 용량 제약으로 인해 스낵 바 고객에게 단기적으로 양보를 해야 했지만, 이 제약은 해결되었습니다.

John B. Sanfilippo & Son (NASDAQ: JBSS) a annoncé des résultats mitigés pour le premier trimestre de l'exercice 2025. Le volume des ventes a augmenté de 24,5 % pour atteindre 91,2 millions de livres, tandis que les ventes nettes ont crû de 18,0 % pour atteindre 276,2 millions de dollars, principalement grâce à l'acquisition de Lakeville. Cependant, le bénéfice brut a diminué de 18,4 % pour s'établir à 46,5 millions de dollars, et le BPA dilué a baissé de 33,8 % pour atteindre 1,00 $ par action.

Le canal de distribution aux consommateurs a affiché une forte croissance, avec un volume des ventes en hausse de 30,8 %. L'entreprise a dû faire face à des défis dus à l'augmentation des coûts des matières premières et a consenti une concession unique à un client de barres de snacks en raison de contraintes de capacité dans l'établissement de Lakeville, bien que ces contraintes aient été résolues.

John B. Sanfilippo & Son (NASDAQ: JBSS) berichtete über gemischte Ergebnisse im ersten Quartal des Geschäftsjahres 2025. Das Verkaufsvolumen stieg um 24,5% auf 91,2 Millionen Pfund, während der Nettoumsatz um 18,0% auf 276,2 Millionen US-Dollar zunahm, hauptsächlich bedingt durch die Übernahme von Lakeville. Der Bruttogewinn hingegen fiel um 18,4% auf 46,5 Millionen US-Dollar, und das verwässerte Ergebnis pro Aktie sank um 33,8% auf 1,00 US-Dollar pro Aktie.

Der Vertriebskanal für Endverbraucher zeigte ein starkes Wachstum, mit einem Anstieg des Verkaufsvolumens um 30,8%. Das Unternehmen sah sich Herausforderungen durch steigende Rohstoffkosten gegenüber und gewährte einem Snackbar-Kunden aufgrund von Kapazitätsengpässen in der Lakeville-Anlage eine einmalige Nachlass, wobei diese Engpässe mittlerweile behoben wurden.

Positive
  • Sales volume increased 24.5% to 91.2 million pounds
  • Net sales grew 18.0% to $276.2 million
  • Consumer distribution channel volume increased 30.8%
  • Private brand sales volume up 36.1%
  • Operating expenses decreased by $2.9 million
Negative
  • Gross profit decreased 18.4% to $46.5 million
  • Diluted EPS declined 33.8% to $1.00 per share
  • Gross profit margin dropped to 16.9% from 24.4%
  • Higher commodity acquisition costs for peanuts and tree nuts
  • One-time price concession impact due to Lakeville facility capacity constraints

Insights

The Q1 FY2025 results show concerning trends despite top-line growth. While net sales increased 18.0% to $276.2 million, this was primarily driven by the Lakeville Acquisition. The core business showed minimal organic growth of just 0.7%. More worrying is the significant decline in profitability, with gross profit dropping 18.4% and diluted EPS falling 33.8% to $1.00.

Key concerns include margin compression from higher commodity costs, competitive pricing pressures and operational issues at the Lakeville facility. Gross margin deteriorated substantially from 24.4% to 16.9%. While some cost savings initiatives are underway, rising input costs and potential need for further price increases could continue pressuring margins in coming quarters.

The integration of the Lakeville Acquisition is facing significant operational challenges. Capacity constraints led to a one-time customer concession, impacting profitability. While management claims these issues are resolved, the situation requires monitoring. The 11.3% inventory increase, primarily from Lakeville-related stock, suggests potential supply chain inefficiencies.

The shift toward private brand production, now representing 88% of consumer channel volume, increases operational complexity and margin pressure. The company needs to demonstrate it can efficiently manage this expanded production scope while maintaining quality and profitability.

First Quarter Sales Volume Increased 24.5% and Net Sales Increased 18.0% to $276.2M Driven by Snack Bar Sales from the Lakeville Acquisition1

ELGIN, Ill.--(BUSINESS WIRE)-- John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) (the “Company”) today announced financial results for its fiscal 2025 first quarter ended September 26, 2024.

First Quarter Summary1

  • Sales volume increased 18.0 million pounds, or 24.5%, to 91.2 million pounds
  • Net sales increased $42.1 million, or 18.0%, to $276.2 million
  • Gross profit decreased 18.4% to $46.5 million
  • Diluted EPS decreased 33.8% to $1.00 per share

CEO Commentary

“We were encouraged by sales volume increases across all three of our distribution channels in the first quarter. The consumer distribution channel delivered its strongest quarterly sales volume growth (excluding the impact from the Lakeville Acquisition) in the past eight quarters, as the overall core nut and trail mix category continues to stabilize and recover. We remain optimistic that the strategic pricing actions we initiated last quarter will continue to drive positive momentum in our consumer distribution channel. However, the category may be challenged by increasing commodity costs and corresponding selling price increases in the next few quarters,” stated Jeffrey T. Sanfilippo, Chief Executive Officer.

“In addition to the impact from our strategic pricing actions, our profitability in the quarter was impacted by a one-time concession to a snack bar customer due to capacity constraints at our Lakeville facility. We believe these capacity constraints have been resolved. However, we continue to focus on identifying and implementing cost savings and operational efficiencies to enhance our future profitability,” Mr. Sanfilippo concluded.

_____________________________

1

Results include the impact of the acquisition of the TreeHouse Foods snack bar business (the “Lakeville Acquisition”) which was completed on September 29, 2023, the first day of our second fiscal quarter of fiscal 2024.

First Quarter Results

Net Sales

Net sales for the first quarter of fiscal 2025 increased $42.1 million, or 18.0%, to $276.2 million, including approximately $40.5 million of net sales from the Lakeville Acquisition. Excluding the Lakeville Acquisition, net sales increased $1.6 million, or 0.7%. This increase was driven by slight increases in sales volume, defined as pounds sold to customers, and the weighted average sales price per pound.

Sales Volume

Consumer Distribution Channel + 30.8% (+3.4% excluding the impact of the Lakeville Acquisition)

  • Private Brand + 36.1%

The increase in sales volume was primarily driven by the Lakeville Acquisition, which predominantly consists of private brand snack bars. Excluding the impact of the Lakeville Acquisition, sales volume grew by 3.9%. This growth was mainly due to new peanut butter and nutrition bar distribution, as well as increased volumes of mixed nuts and snack and trail mix at a mass merchandising retailer, which resulted mainly from retail pricing adjustments and rotational distributions. Private brand sales volume, including the Lakeville Acquisition, represented approximately 88% of total sales volume in this channel.

  • Branded2 + 5.4%

The increase in sales volume was mainly due to higher sales volume of Southern Style Nuts at a club store, as they returned to normalized inventory levels compared to the same quarter last year.

Commercial Ingredients Distribution Channel + 1.2% (- 0.6% excluding the impact of the Lakeville Acquisition)

The sales volume increase was mainly driven by the Lakeville Acquisition. Excluding the Lakeville Acquisition, sales volume remained relatively unchanged, decreasing by less than one percent.

Contract Manufacturing Distribution Channel + 13.3% (-19.8% excluding the impact of the Lakeville Acquisition)

The increase in sales volume was driven by the increased granola volume processed in our Lakeville facility for a major customer in this channel. Excluding this granola volume, sales volume decreased by 19.8%. This decrease was mainly due to reduced peanut distribution by a major customer, resulting from soft consumer demand. Additionally, the prior year’s comparable quarter was positively impacted by a rotational distribution for a club customer, which did not reoccur in the current quarter.

_____________________________

2

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

Gross Profit

Gross profit decreased by $10.5 million to $46.5 million, which includes the $0.4 million positive impact from the Lakeville Acquisition. This decrease was mainly due to lower selling prices caused by competitive pricing pressures and strategic pricing decisions, as well as higher commodity acquisition costs for peanuts and most tree nuts. Additionally, a one-time price concession to a snack bar customer and increased manufacturing spending due to capacity constraints at our Lakeville facility contributed to the overall decrease in gross profit. These factors were partially offset by increased manufacturing efficiencies at our other facilities. Gross profit margin decreased to 16.9% of net sales from 24.4% in the comparable quarter of the previous year. This decrease was primarily due to the reasons noted above and the higher net sales base as a result of the Lakeville Acquisition.

Operating Expenses

Total operating expenses decreased by $2.9 million compared to the prior comparable quarter. Excluding the Lakeville Acquisition, total operating expenses decreased by $4.9 million. This decrease was primarily due to lower advertising expenses and incentive compensation expenses, which was partially offset by an increase in rent expense related to our new distribution center. Total operating expenses, as a percentage of net sales, decreased to 10.7% from 13.9% in the prior comparable quarter, due to the higher net sales base as a result of the Lakeville Acquisition. Excluding the impact of the Lakeville Acquisition, total operating expenses, as a percentage of net sales, decreased to 11.7% from 13.9%, due to the reasons noted above.

Inventory

The value of total inventories on hand at the end of the current first quarter increased by $19.8 million, or 11.3%. This increase was mainly due to $21.1 million of additional inventory associated with the Lakeville Acquisition. Excluding the Lakeville Acquisition, the value of total inventories on hand decreased $1.4 million, or 0.8%, year over year. The weighted average cost per pound of raw nut and dried fruit input stock on hand, excluding the impact of the Lakeville Acquisition, did not change significantly.

In closing, Mr. Sanfilippo commented, “We will continue to execute on our strategic plan as we navigate through the upcoming fiscal quarters. Moving forward, our main priorities will be to optimize commodity acquisition costs and selling price alignment, drive category growth for snack and trail mix, increase our snack and nutrition bar distribution, and identify additional operational efficiencies. I believe we have the right strategy and a best-in-class team to create long-term shareholder value.”

Conference Call

The Company will host an investor conference call and webcast on Thursday, October 31, 2024, 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/BIdf4da70deef84255952fdc65da1fbc41

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.

Upcoming Event

The Company will be presenting at the Southwest IDEAS conference in Dallas, Texas on November 20, 2024. Qualified investors that would like to schedule a meeting with management should contact Three Part Advisors at the phone number below.

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 or snack bar categories 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; (iii) the impact of any fixed price commitments with customers; (iv) the ability to pass on price increases to customers if and when commodity costs rise and the potential for a negative impact on demand for, and sales of, our products from price increases; (v) the ability to accurately 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 adjustments, respectively; (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 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 adverse effect of work slowdowns or stoppages, strikes, boycotts or other types of labor unrest; (x) the adverse effect of litigation and/or legal settlements, including potential unfavorable outcomes exceeding any amounts accrued; (xi) losses due to significant disruptions at any of our production, processing or warehouse facilities; (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 and further integrate the acquired snack bar related assets at our Lakeville facility 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

 

 

September 26,
2024

 

 

September 28,
2023

Net sales

 

$

276,196

 

 

$

234,105

Cost of sales

 

 

229,652

 

 

 

177,083

Gross profit

 

 

46,544

 

 

 

57,022

Operating expenses:

 

 

 

 

 

Selling expenses

 

 

19,839

 

 

 

21,992

Administrative expenses

 

 

9,698

 

 

 

10,453

Total operating expenses

 

 

29,537

 

 

 

32,445

Income from operations

 

 

17,007

 

 

 

24,577

Other expense:

 

 

 

 

 

Interest expense

 

 

516

 

 

 

227

Rental and miscellaneous expense, net

 

 

411

 

 

 

356

Pension expense (excluding service costs)

 

 

361

 

 

 

350

Total other expense, net

 

 

1,288

 

 

 

933

Income before income taxes

 

 

15,719

 

 

 

23,644

Income tax expense

 

 

4,060

 

 

 

6,056

Net income

 

$

11,659

 

 

$

17,588

Basic earnings per common share

 

$

1.00

 

 

$

1.52

Diluted earnings per common share

 

$

1.00

 

 

$

1.51

Weighted average shares outstanding

 

 

 

 

 

— Basic

 

 

11,630,405

 

 

 

11,594,960

— Diluted

 

 

11,714,362

 

 

 

11,674,742

 

JOHN B. SANFILIPPO & SON, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

 

 

September 26,
2024

 

June 27,
2024

 

September 28,
2023

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash

 

$

442

 

 

$

484

 

 

$

838

 

Accounts receivable, net

 

 

83,787

 

 

 

84,960

 

 

 

68,363

 

Inventories

 

 

194,565

 

 

 

196,563

 

 

 

174,789

 

Prepaid expenses and other current assets

 

 

8,695

 

 

 

12,078

 

 

 

7,603

 

 

 

 

287,489

 

 

 

294,085

 

 

 

251,593

 

 

 

 

 

 

 

 

PROPERTIES, NET:

 

 

175,377

 

 

 

165,094

 

 

 

137,993

 

 

 

 

 

 

 

 

OTHER LONG-TERM ASSETS:

 

 

 

 

 

 

Intangibles, net

 

 

17,191

 

 

 

17,572

 

 

 

17,966

 

Deferred income taxes

 

 

3,680

 

 

 

3,130

 

 

 

3,461

 

Operating lease right-of-use assets

 

 

28,034

 

 

 

27,404

 

 

 

6,845

 

Other assets

 

 

7,596

 

 

 

8,290

 

 

 

6,995

 

 

 

 

56,501

 

 

 

56,396

 

 

 

35,267

 

TOTAL ASSETS

 

$

519,367

 

 

$

515,575

 

 

$

424,853

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS' EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Revolving credit facility borrowings

 

$

47,152

 

 

$

20,420

 

 

$

6,008

 

Current maturities of long-term debt

 

 

815

 

 

 

737

 

 

 

688

 

Accounts payable

 

 

59,575

 

 

 

53,436

 

 

 

51,922

 

Bank overdraft

 

 

1,315

 

 

 

545

 

 

 

669

 

Accrued expenses

 

 

30,976

 

 

 

50,802

 

 

 

30,014

 

 

 

 

139,833

 

 

 

125,940

 

 

 

89,301

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

 

 

Long-term debt, less current maturities

 

 

6,169

 

 

 

6,365

 

 

 

6,924

 

Retirement plan

 

 

26,463

 

 

 

26,154

 

 

 

26,788

 

Long-term operating lease liabilities

 

 

25,167

 

 

 

24,877

 

 

 

5,136

 

Other

 

 

10,932

 

 

 

9,626

 

 

 

9,337

 

 

 

 

68,731

 

 

 

67,022

 

 

 

48,185

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

Class A Common Stock

 

 

26

 

 

 

26

 

 

 

26

 

Common Stock

 

 

91

 

 

 

91

 

 

 

91

 

Capital in excess of par value

 

 

136,626

 

 

 

135,691

 

 

 

132,733

 

Retained earnings

 

 

174,220

 

 

 

186,965

 

 

 

155,925

 

Accumulated other comprehensive income (loss)

 

 

1,044

 

 

 

1,044

 

 

 

(204

)

Treasury stock

 

 

(1,204

)

 

 

(1,204

)

 

 

(1,204

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

310,803

 

 

 

322,613

 

 

 

287,367

 

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

 

$

519,367

 

 

$

515,575

 

 

$

424,853

 

 

Company:

Frank S. Pellegrino

Chief Financial Officer

847-214-4138

Investor Relations:

John Beisler or Steven Hooser

Three Part Advisors, LLC

817-310-8776

 

Source: John B. Sanfilippo & Son, Inc.

FAQ

What was JBSS's net sales growth in Q1 2025?

JBSS reported net sales growth of 18.0%, reaching $276.2 million in Q1 2025.

How did JBSS's earnings per share (EPS) perform in Q1 2025?

JBSS's diluted EPS decreased 33.8% to $1.00 per share in Q1 2025.

What was the impact of the Lakeville Acquisition on JBSS's Q1 2025 sales?

The Lakeville Acquisition contributed approximately $40.5 million to net sales in Q1 2025.

How did JBSS's gross profit margin change in Q1 2025?

JBSS's gross profit margin decreased to 16.9% from 24.4% in the comparable quarter of the previous year.

John B. Sanfilippo & SON

NASDAQ:JBSS

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964.61M
9.01M
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Packaged Foods
Sugar & Confectionery Products
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United States of America
ELGIN