FY24 Year End Investor Update NASDAQ: JBSS Proprietary & Confidential | John B. Sanfilippo & Son, Inc. Forward-Looking Statements Some of the statements in this presentation and any statements by management constitute "forward-looking statements" about John B. Sanfilippo & Son, Inc. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. In some cases, you can identify forward-looking statemen ...

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Summary of John B Sanfilippo & Son (JBSS) FY Conference Call Company Overview - John B Sanfilippo & Son (JBSS) is a 102-year-old company specializing in nut processing and snack bar manufacturing, trading on Nasdaq under the ticker symbol JBSS [1] - The company operates the largest nut processing facilities globally and is vertically integrated in pecans, walnuts, and peanuts [4][6] Financial Performance - JBSS reported nearly $1.1 billion in revenue, with 82% of sales coming from the consumer channel [4][12] - Sales volume has grown at a 4% CAGR over the last ten years, while diluted EPS has increased at 8.1% [6] - EBITDA has consistently reached $100 million annually over the last three years [7] - The company has a strong balance sheet, with reduced debt-to-equity and debt-to-EBITDA ratios [9][10] Product and Sales Insights - Nut and trail mixes account for approximately 25% of the product portfolio, with snack bars increasing from 11% to 14% of gross sales year-over-year [5] - The consumer channel saw an 11% increase in sales, driven by private label growth and e-commerce [12][13] - The commercial ingredients channel experienced a 10% decline in sales due to competitive pricing issues [13] - The contract manufacturing channel also saw a decrease in sales, primarily due to a canceled product launch by the largest customer [14] Market Trends and Challenges - Retail nut prices have increased, negatively impacting category volume and dollar share [15] - Current fiscal year trends show consumers opting for cheaper snacks or leaving the snack category altogether, resulting in flat to declining sales volume [16] - The nut and trail category has historically grown at a 1% to 3% CAGR, but recent economic conditions have led to a decline [50][51] Strategic Initiatives - JBSS aims to expand consumer reach, particularly in e-commerce and private label segments [18][19] - The company is investing in the bar category, expecting growth from $150 million to between $300 million and $500 million over the next three to five years [27] - Investments in machinery are aimed at increasing production capacity and reducing costs, with new equipment expected to triple output [28] Brand and Product Development - JBSS's brands account for 15% of sales, with Fisher recipe nuts being the category leader [30] - The company is focusing on health and wellness trends, particularly with the Orchard Valley Harvest brand [34] - Consumer insights play a crucial role in product development, helping JBSS align offerings with market trends [36][37] Future Outlook - The company is exploring opportunities in other snack categories, including cookies, crackers, and pretzels [42] - JBSS is committed to maintaining strong relationships with key retailers and expanding its private label offerings [39][40] - The management team anticipates potential acquisition opportunities in the nut and trail category due to market dynamics [75] Technology and Innovation - JBSS is investing in AI and robotics to enhance operational efficiency and reduce costs [87] - The company has implemented advanced technology in its manufacturing processes, significantly reducing manual labor [88]

John B Sanfilippo & Son (JBSS) Q3 2025 Earnings Call May 01, 2025 10:00 AM ET Company Participants Jeffrey Sanfilippo - Chairman & CEOFrank Pellegrino - CFO, Executive VP of Finance & Administration and Treasurer Conference Call Participants Nick Otton - Senior Research AnalystNone - Analyst Operator Thank you for standing by. My name is Gail, and I will be your operator for today's call. At this time, I would like to welcome each and every one of you to the John B. Sanfilippo and Son, Inc. Third Quarter Fi ...

Financial Data and Key Metrics Changes - Net sales for Q3 FY2025 decreased by 4% to $260.9 million compared to $271.9 million in Q3 FY2024, driven by a 7.9% decrease in sales volume, partially offset by a 4.2% increase in the weighted average sales price per pound [12][17] - Gross profit increased by $6.7 million or 13.7% to $55.9 million, with gross profit margin as a percentage of net sales rising to 21.4% from 18.1% in the prior year [15][16] - Net income for Q3 FY2025 was $20.2 million or $1.72 per diluted share, compared to $13.5 million or $1.15 per diluted share in Q3 FY2024 [17] Business Line Data and Key Metrics Changes - Sales volume decreased by 9.2% in the consumer distribution channel, primarily due to an 8.3% decrease in private brand volume, with a significant decline in bars volume [13] - Sales volume for branded products decreased by 12.9%, mainly due to a 33.8% reduction in Orchard Valley Harvest sales [14] - Sales volume increased by 6% in the contract manufacturing distribution channel, driven by increased granola volume processed [14] Market Data and Key Metrics Changes - The snack, nut, and trail mix category saw a 2% decrease in pounds but a 2% increase in dollars, indicating rising prices [24] - Fisher snack and trail mix experienced a 17% decline in pound shipments, while Southern Style Nut Brand saw a 10% increase in pound shipments [24][25] - The recipe nut category was down 1% in pounds but up 10% in dollars, reflecting increased prices for walnuts and pecans [27] Company Strategy and Development Direction - The company plans to invest approximately $90 million in equipment to expand domestic production capabilities and improve infrastructure by the end of FY2026 [5][6] - The focus remains on adapting strategies to meet evolving customer needs and managing costs amid rising commodity prices and tariffs [5][10] - The company is committed to innovation and cost-saving opportunities to mitigate commodity pressures while expanding distribution and brand awareness [11][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macroeconomic environment impacting demand for nuts and snacks, emphasizing the need for strategic execution [5][6] - There is confidence in the investments made in production and infrastructure to drive efficiencies and deliver innovation [6][30] - The company anticipates potential declines in commodity prices due to demand destruction from high retail prices, which may stabilize costs in the future [55] Other Important Information - The total value of inventories increased by 22.4% year-over-year, primarily due to higher quantities and costs of finished goods and raw materials [18] - The weighted average cost per pound of raw nuts and dried fruit increased by 33.9% year-over-year, reflecting higher commodity acquisition costs [18] Q&A Session Summary Question: Tariff exposure and passing costs to customers - Management indicated that discussions are ongoing with key customers to pass on tariff costs, particularly for high-volume items [33][34] Question: Profitability of cashew and mixed nuts segment - The cashew and mixed nuts segment remains profitable, but higher tariffs could challenge price increases and consumer demand [38][39] Question: Inventory transition and gross margin expectations - Management expects gross margins to stabilize, with inventory valuation adjustments providing a clearer picture of future profitability [44][56] Question: Investment in bar business - The $90 million investment includes expanding bar infrastructure, indicating growth potential in the bar category [45][46] Question: Strategy for upcoming quarters - The company is focusing on promotional programs and pricing strategies to navigate market volatility and ensure the right product mix [62]

Financial Performance - Net sales for the third quarter of fiscal 2025 decreased by $11.0 million, or 4.0%, to $260.9 million compared to $271.9 million in the third quarter of fiscal 2024[76]. - Net sales for the first thirty-nine weeks of fiscal 2025 increased by $41.0 million, or 5.1%, to $838.2 million compared to the same period in fiscal 2024[76]. - For the third quarter of fiscal 2025, net sales decreased by $10.98 million, or 4.0%, to $260.91 million compared to $271.88 million in the same quarter of fiscal 2024[86]. - Consumer distribution channel sales decreased by $11.24 million, or 5.0%, in the third quarter of fiscal 2025, with a sales volume decrease of 9.2%[88]. - For the first thirty-nine weeks of fiscal 2025, net sales in the consumer distribution channel increased by $43.81 million, or 6.7%, to $695.5 million[87]. - The commercial ingredients distribution channel saw a decrease in net sales of $4.7 million, or 5.6%, for the first thirty-nine weeks of fiscal 2025[91]. - Contract manufacturing distribution channel net sales increased by $1.8 million, or 2.9%, for the first thirty-nine weeks of fiscal 2025, with a sales volume increase of 25.2%[93]. Profitability - Gross profit margin increased to 21.4% for the third quarter of fiscal 2025, up from 18.1% in the same quarter of fiscal 2024[78]. - Gross profit for the third quarter of fiscal 2025 increased by $6.7 million, or 13.7%, to $55.9 million, with a gross profit margin of 21.4% compared to 18.1% in the same quarter of fiscal 2024[94]. - Income from operations for the third quarter of fiscal 2025 was $28.2 million, or 10.8% of net sales, compared to $18.4 million, or 6.7% of net sales, in the same quarter of fiscal 2024[102]. - Net income for the third quarter of fiscal 2025 was $20.2 million, or $1.73 per share, compared to $13.5 million, or $1.16 per share, in the same quarter of fiscal 2024[108]. Expenses and Costs - Total operating expenses decreased by $3.1 million, or 10.2%, in the third quarter of fiscal 2025 compared to the same quarter in fiscal 2024[79]. - Total operating expenses for the third quarter of fiscal 2025 decreased by $3.1 million, or 10.2%, to $27.7 million, representing 10.6% of net sales[96]. - The weighted average cost per pound of raw nut input stocks increased by 33.9% at the end of the third quarter of fiscal 2025 compared to the end of the third quarter of fiscal 2024[115]. Inventory and Capital Expenditures - The total value of inventories on hand at the end of the third quarter of fiscal 2025 increased by $47.1 million, or 22.4%, compared to the end of the third quarter of fiscal 2024[80]. - Total inventories increased to $257.8 million at March 27, 2025, reflecting a rise of $61.2 million, or 31.2%, from June 27, 2024[114]. - Capital asset purchases amounted to $37.2 million during the first thirty-nine weeks of fiscal 2025, compared to $17.5 million for the same period in fiscal 2024[116]. - The company plans to invest approximately $90.0 million in capital expenditures to expand production capabilities and enhance product offerings starting in the second quarter of fiscal 2025[111]. Cash Flow and Financing - Cash used in operating activities was $6.0 million for the first thirty-nine weeks of fiscal 2025, a decrease of $72.4 million compared to $66.4 million provided in the same period of fiscal 2024[113]. - Cash used in investing activities was $37.3 million during the first thirty-nine weeks of fiscal 2025, down from $76.5 million in the same period last year[116]. - Cash provided by financing activities was $44.1 million during the first thirty-nine weeks of fiscal 2025, compared to $8.5 million for the same period last year[117]. - Net borrowings under the Credit Facility were $69.2 million during the first thirty-nine weeks of fiscal 2025, up from $32.1 million in the same period of fiscal 2024[117]. - The available credit under the Credit Facility increased to $150.0 million as of September 29, 2023, with a maturity date extended to September 29, 2028[123]. - As of March 27, 2025, the company had $55.7 million of available credit under the Credit Facility, maintaining compliance with all covenants[126]. Challenges and Strategic Plans - The company faces challenges from higher food prices, supply chain issues, and changing consumer preferences impacting sales volume[66][67]. - The company plans to invest significant additional capital in fiscal 2025 to purchase new equipment and improve infrastructure to expand production capabilities[63]. - The Lakeville Acquisition contributed to the increase in net sales for the first thirty-nine weeks of fiscal 2025[84]. - The weighted average sales price per pound increased by 4.2% primarily due to higher commodity acquisition costs for all major tree nuts[84].

Financial Performance - Net sales for Q3 fiscal 2025 decreased by $11.0 million, or 4.0%, to $260.9 million, attributed to a 7.9% decrease in sales volume [3] - Diluted EPS increased by 49.6% to $1.72 per share, reflecting improved gross profit despite a decline in sales volume [4] - Gross profit increased by $6.7 million to $55.9 million, with gross margin rising to 21.4% from 18.1% in the prior year [9] - Gross profit margin decreased from 20.6% to 18.5% for the nine-month period, mainly due to increased commodity acquisition costs [17] Inventory and Assets - The value of total inventories increased by $47.1 million, or 22.4%, primarily due to higher quantities and costs of finished goods [11] - Inventories increased to $257,798 million in March 2025, up from $196,563 million in June 2024, reflecting a rise of 31.1% [23] - Total assets increased to $589,976 million in March 2025, up from $515,575 million in June 2024, representing a growth of 14.5% [23] - Cash reserves rose significantly to $1,295 million in March 2025, compared to $484 million in June 2024, marking an increase of 168.6% [23] - Accounts receivable decreased to $74,538 million in March 2025 from $84,960 million in June 2024, a decline of 12.2% [23] - The company reported a significant increase in prepaid expenses and other current assets, rising to $15,565 million in March 2025 from $12,078 million in June 2024, a growth of 28.3% [23] - The operating lease right-of-use assets increased to $28,871 million in March 2025, compared to $27,404 million in June 2024, reflecting a rise of 5.3% [23] Liabilities and Equity - Current liabilities rose to $173,991 million in March 2025, compared to $125,940 million in June 2024, an increase of 38.1% [23] - Total stockholders' equity increased to $346,613 million in March 2025, up from $322,613 million in June 2024, a growth of 7.4% [23] - Long-term debt decreased slightly to $5,765 million in March 2025 from $6,365 million in June 2024, a reduction of 9.4% [23] - Retained earnings increased to $207,968 million in March 2025, compared to $186,965 million in June 2024, an increase of 11.2% [23] Operational Insights - Sales volume in the consumer distribution channel decreased by 9.2%, driven by a 16.0% reduction in bars volume [5] - The commercial ingredients distribution channel saw an 8.3% decrease in sales volume, mainly due to competitive pricing pressures [7] - The company plans to invest approximately $90 million in equipment to expand domestic production capabilities by the end of fiscal 2026 [2] - The company is monitoring the impact of import tariffs on 15-20% of raw material purchases and is working with suppliers to manage cost increases [14] - Operating expenses decreased by $3.5 million to $90.1 million, driven by reductions in incentive compensation and advertising expenses [17]

Company Overview - John B. Sanfilippo & Son, Inc. is a major processor and distributor of snack and recipe nut products, as well as a snack bar manufacturer [3] - The company is based in Elgin, Illinois and markets products under various brand names including Fisher, Orchard Valley Harvest, Squirrel Brand, Southern Style Nuts, and Just the Cheese [3] Upcoming Financial Event - The company will hold its quarterly conference call to discuss its third quarter fiscal year 2025 operating results on May 1, 2025, at 10:00 a.m. Eastern Time [1] - Third quarter fiscal 2025 results are expected to be released after the market closes on April 30, 2025 [1] Conference Call Details - Dial-in numbers for the call are 1-888-596-4144 from the U.S. and 1-646-968-2525 internationally, with a participant pass code of 9901839 [2] - The call will be webcast and accessible via the company's website at www.jbssinc.com [2]

Company Overview - John B. Sanfilippo & Son, Inc. is a major processor and distributor of snack and recipe nut products, as well as a snack bar manufacturer [3] - The company is based in Elgin, Illinois and markets products under several brand names including Fisher®, Orchard Valley Harvest®, Squirrel Brand®, Southern Style Nuts®, and Just the Cheese® [3] Upcoming Financial Events - The company will hold its quarterly conference call to discuss its third quarter fiscal year 2025 operating results on May 1, 2025, at 10:00 a.m. Eastern Time [1] - Third quarter fiscal 2025 results are expected to be released after the market closes on April 30, 2025 [1] Conference Call Details - Dial-in numbers for the call are 1-888-596-4144 from the U.S. and 1-646-968-2525 internationally, with a participant pass code of 9901839 [2] - The call will be webcast and accessible via the company's website at www.jbssinc.com [2] Investor Relations Contacts - Frank Pellegrino serves as the Chief Financial Officer and can be contacted at 847-214-4138 [4] - Investor relations can also be reached through John Beisler or Steven Hooser at Three Part Advisors, LLC, phone number 817-310-8776 [4]

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