John B. Sanfilippo & Son, Inc. Reports Fiscal 2025 Second Quarter Results
Second Quarter Sales Volume Increased
Second Quarter Summary
-
Net sales increased
, or$9.8 million 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 per share$1.16
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
Second Quarter Results
Net Sales
Net sales for the second quarter of fiscal 2025 increased
Sales Volume
Consumer Distribution Channel +
-
Private Brand +
4.0%
The sales volume increase was driven by a27.6% 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 a3.8% 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 increased11.8% driven by a return to normalized inventory levels and increased sales velocity at a club store customer.
Commercial Ingredients Distribution Channel +
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 +
The sales volume increase was driven by increased granola volume processed in our
________________________
* Includes Fisher recipe nuts, Fisher snack nuts, Orchard Valley Harvest and Southern Style Nuts. |
|
Gross Profit
Gross profit decreased by
Operating Expenses, net
Total operating expenses increased
Inventory
The value of total inventories on hand at the end of the current second quarter increased
Six Month Results
-
Net sales increased
9.9% to . 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$577.3 million 2.2% to . The increase in net sales was primarily attributable to a$536.8 million 4.1% increase in sales volume, which was partially offset by a1.9% 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% to17.1% 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
compared to$62.4 million in the prior year to date period.$62.8 million -
Diluted EPS decreased
31.4% , or per diluted share, to$0.99 .$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
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
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) |
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|
|
For the Quarter Ended |
|
|
For the Twenty-Six Weeks Ended |
|
||||||||||
|
|
December 26,
|
|
|
December 28,
|
|
|
December 26,
|
|
|
December 28,
|
|
||||
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,
|
|
|
June 27,
|
|
|
December 28,
|
|
|||
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
Source: John B. Sanfilippo & Son, Inc.