Financial Performance - Net sales for Q2 fiscal 2025 increased by $9.8 million, or 3.4%, to $301.1 million, driven by a 7.1% increase in sales volume [3] - Sales volume increased by 6.4 million pounds, or 7.1%, totaling 96.3 million pounds, with bars sales volume up approximately 28% year-over-year [4] - Gross profit decreased by $5.7 million to $52.3 million, resulting in a gross profit margin decline to 17.4% from 19.9% in the prior year [8] - Diluted EPS decreased by 29.3% to $1.16 per share [4] - Total operating expenses increased by $2.5 million, with operating expenses as a percentage of net sales rising to 10.9% from 10.4% [9] Inventory and Costs - The value of total inventories increased by $8.5 million, or 4.3%, primarily due to higher commodity acquisition costs [10] - The weighted average cost per pound of raw nut and dried fruit input stock increased by 33.7% year-over-year [10] - Inventories increased to $205.842 million in December 2024, compared to $196.563 million in June 2024, representing a rise of 4.1% [22] Operational Changes - The company plans to consolidate distribution operations into a new location in Huntley, Illinois, and add manufacturing equipment to increase production capabilities [13] - The company remains focused on enhancing profitability through operational efficiencies and optimized pricing strategies [2] Sales Growth - The company reported a 14.9% increase in sales volume for the first six months of fiscal 2025, attributed mainly to the impact of the Lakeville Acquisition [16] Assets and Liabilities - Total assets increased to $545.253 billion in December 2024, up from $515.575 billion in June 2024, representing a growth of 5.3% [22] - Cash decreased significantly to $336 million in December 2024 from $1.975 billion in December 2023, indicating a decline of 83.0% [22] - Accounts receivable increased to $81.2 million in December 2024, compared to $77.416 million in December 2023, reflecting a growth of 4.6% [22] - Current liabilities rose to $150.062 million in December 2024, up from $125.940 million in June 2024, marking an increase of 19.2% [22] - Long-term debt, less current maturities, decreased slightly to $5.969 million in December 2024 from $6.365 million in June 2024, a reduction of 6.2% [22] - Stockholders' equity increased to $325.631 million in December 2024, up from $322.613 million in June 2024, showing a growth of 0.6% [22] - Accrued expenses decreased to $32.937 million in December 2024 from $50.802 million in June 2024, a decline of 35.2% [22] - The company reported a total of $64.426 million in other long-term assets in December 2024, up from $56.396 million in June 2024, indicating a growth of 14.4% [22] - The company maintained its Class A Common Stock at 26 million shares, unchanged from previous periods [22]

Core Viewpoint - John B. Sanfilippo & Son, Inc. is set to discuss its second quarter fiscal year 2025 operating results in a conference call scheduled for January 30, 2025, following the release of results on January 29, 2025 [1]. Company Overview - John B. Sanfilippo & Son, Inc. is based in Elgin, Illinois, and operates as a processor, packager, marketer, and distributor of nut and dried-fruit products, snack bars, and dried cheese [3]. - The company markets its products under several brand names, including Fisher, Orchard Valley Harvest, Squirrel Brand, Southern Style Nuts, and Just the Cheese, as well as various private brands [3].

Financial Data and Key Metrics Changes - Net sales for Q1 fiscal 2025 increased by 18% to $276.2 million compared to $234.1 million in Q1 fiscal 2024, including approximately $40.5 million from the Lakeville acquisition [16] - Sales volume increased by 24.5% to 91.2 million pounds, with significant growth across all distribution channels [5][16] - Gross profit decreased by $10.5 million or 18.4% to $46.5 million, primarily due to lower selling prices and higher commodity costs [22] - Net income for Q1 fiscal 2025 was $11.7 million or $1 per diluted share, down from $17.6 million or $1.51 per diluted share in Q1 fiscal 2024 [26] Business Line Data and Key Metrics Changes - Consumer distribution channel sales volume increased by 30.8%, driven largely by the Lakeville acquisition [17] - Branded products sales volume increased by 5.4%, mainly due to higher sales of Southern Style Nuts [19] - Contract manufacturing distribution channel sales volume increased by 13.3%, but decreased by 19.8% when excluding Lakeville granola volume [21] Market Data and Key Metrics Changes - The snack nut and trail mix category grew by 1.8% in pounds, while dollar sales decreased by 1.4% [36] - The snack bar category declined by 1.8% in pounds but increased by 0.6% in dollars [42] - Private label bars saw a significant increase, with shipments up 12% in pounds and 13% in dollars [43] Company Strategy and Development Direction - The company is focusing on operational efficiencies and optimizing the supply chain to stabilize margins [12][44] - Strategic investments and initiatives over the past three years are expected to drive future strong operating results [31] - The company is expanding its manufacturing footprint with a new 446,000 square foot facility in Huntley, Illinois [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing headwinds from shifts in consumer behavior and commodity inflation but expressed confidence in navigating these challenges [45] - The company is optimistic about the strategic pricing actions initiated to drive positive momentum in consumer and distribution channels [6][14] Other Important Information - The company plans to report on brand and private label performance based on internal shipment data to align with broader market views [32] - AI technology is being explored to enhance systems and processes within the company [13] Q&A Session Summary - The call concluded without any recorded questions or answers, indicating a wrap-up of the conference call [47][48]

Financial Performance - Net sales for the first quarter of fiscal 2025 increased by 18.0% to $276.2 million, up from $234.1 million in the first quarter of fiscal 2024[73] - Gross profit margin decreased to 16.9% for the first quarter of fiscal 2025, down from 24.4% in the same quarter of fiscal 2024[74] - Income from operations was $17.0 million, or 6.2% of net sales, for Q1 FY2025, down from $24.6 million, or 10.5% of net sales, in Q1 FY2024[89] - Net income for Q1 FY2025 was $11.7 million, or $1.00 per common share, compared to $17.6 million, or $1.52 per common share, in Q1 FY2024[94] - Cash provided by operating activities was $8.9 million in Q1 FY2025, a decrease from $21.9 million in the same period last year[96] Sales and Volume - Sales volume, measured as pounds sold to customers, increased by 24.5% compared to the first quarter of fiscal 2024, primarily due to the Lakeville Acquisition[78] - Private brand sales volume increased by 36.1%, primarily driven by the Lakeville Acquisition, with a 3.9% increase excluding this acquisition[81] - Sales volume of Southern Style Nuts increased by 57.3% due to sales to a club store customer returning to normalized inventory levels[81] - Net sales in the consumer distribution channel increased by 24.4%, with sales volume up by 30.8% in the first quarter of fiscal 2025 compared to the same quarter last year[81] - The Lakeville Acquisition contributed approximately $40.5 million to quarterly net sales, increasing sales volume by 17.6 million pounds, or 24.1%[78] - Net sales in the contract manufacturing distribution channel decreased by $1.7 million, or 8.0%, with sales volume increasing by 13.3% in Q1 FY2025 compared to Q1 FY2024[83] Operating Expenses - Total operating expenses decreased by 9.0% to 10.7% of net sales in the first quarter of fiscal 2025, compared to 13.9% in the first quarter of fiscal 2024[74] - Gross profit decreased by $10.5 million, or 18.4%, to $46.5 million for Q1 FY2025, with gross profit margin dropping to 16.9% from 24.4% in Q1 FY2024[85] - Total operating expenses decreased by $2.9 million, or 9.0%, to $29.5 million, representing 10.7% of net sales in Q1 FY2025 compared to 13.9% in Q1 FY2024[86] Inventory and Cash Flow - The total value of inventories on hand at the end of the first quarter of fiscal 2025 increased by 11.3% to $194.8 million compared to the same period last year[75] - Total inventories were $194.6 million at September 26, 2024, a decrease of $2.0 million, or 1.0%, from the previous quarter, but an increase of $19.8 million, or 11.3%, year-over-year[97] - Cash used in investing activities was $12.0 million in Q1 FY2025, compared to $6.0 million in the same period last year, with expected total capital expenditures for FY2025 at approximately $33.0 million[99] - Cash provided by financing activities was $3.0 million in Q1 FY2025, compared to cash used of $16.9 million in the same period last year, with net borrowings under the Credit Facility increasing to $26.7 million[100] Market Conditions and Risks - Cocoa prices remain sharply elevated compared to the previous year, influenced by speculation of a production deficit due to adverse weather and crop disease[71] - The company has identified several risks that could cause actual results to differ materially from current expectations, including changes in sales activity and consumer preferences[114] - There is a potential impact on demand and sales due to the inability to pass on price increases to customers if commodity costs rise[114] - The company is focused on implementing its Long-Range Plan, which includes growing branded and private brand product sales and diversifying product offerings[114] - The company has not reported any material changes in its assessment of sensitivity to market risk since the last annual report[116] Credit Facility - The weighted average interest rate for the Credit Facility was 7.0% as of September 26, 2024, with $97.7 million of available credit under the facility[108]

Sales Performance - First quarter sales volume increased by 24.5% to 91.2 million pounds, with net sales rising 18.0% to $276.2 million, driven primarily by the Lakeville Acquisition[1][3] - Net sales from the Lakeville Acquisition contributed approximately $40.5 million, while excluding this impact, net sales increased by only 0.7%[3][4] - Consumer distribution channel sales volume grew by 30.8%, with private brand sales volume increasing by 36.1%[4][5] Profitability - Gross profit decreased by 18.4% to $46.5 million, resulting in a gross profit margin decline to 16.9% from 24.4% in the prior year[1][6] - Diluted earnings per share (EPS) fell by 33.8% to $1.00, compared to $1.51 in the same quarter last year[1][15] Operating Expenses - Total operating expenses decreased by $2.9 million year-over-year, with operating expenses as a percentage of net sales dropping to 10.7% from 13.9%[7] Inventory and Assets - Inventory value increased by $19.8 million, or 11.3%, primarily due to the Lakeville Acquisition[8] - Total assets increased to $519,367 thousand as of September 26, 2024, up from $424,853 thousand a year ago, representing a growth of 22.3%[16] - Accounts receivable increased to $83,787 thousand, up from $68,363 thousand, reflecting a growth of 22.6%[16] - Inventories slightly decreased to $194,565 thousand from $196,563 thousand, a decrease of 1.0%[16] Liabilities and Equity - Current liabilities rose to $139,833 thousand, compared to $89,301 thousand a year ago, an increase of 56.6%[16] - Long-term debt, less current maturities, decreased to $6,169 thousand from $6,924 thousand, a reduction of 10.9%[16] - Retained earnings decreased to $174,220 thousand from $155,925 thousand, a decline of 11.7%[16] - Total stockholders' equity decreased to $310,803 thousand from $287,367 thousand, an increase of 8.2%[16] Borrowings and Financial Strategy - Revolving credit facility borrowings increased significantly to $47,152 thousand from $6,008 thousand, an increase of 684.5%[16] - Operating lease right-of-use assets increased to $28,034 thousand from $6,845 thousand, a growth of 309.5%[16] - The company plans to focus on optimizing commodity acquisition costs and enhancing operational efficiencies moving forward[9] Upcoming Events - The company will host an investor conference call on October 31, 2024, to discuss these results[10] - The company is scheduled to present at the Southwest IDEAS conference on November 20, 2024[11]

Core Insights - Daniel Mellado is an economist with a Master's Degree in Statistics, specializing in agricultural commodities and financial investment portfolios [1] - He has experience managing trading and data analysis teams, focusing on investments in bonds, equities, and ETFs [1] - Mellado will provide analysis and valuation for companies in commodities, banking, technology, and pharmaceuticals sectors [1] - The investment recommendations will be based on financial statements, regulations, and macroeconomic variables [1]

Elgin, IL, Oct. 23, 2024 (GLOBE NEWSWIRE) -- John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS), a major processor and distributor of snack and recipe nut products and snack bar manufacturer, will hold its quarterly conference call to discuss its first quarter fiscal year 2025 operating results on Thursday, October 31, 2024 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). First quarter fiscal 2025 results are expected to be released after the market closes on Wednesday, October 30, 2024. To register for the ...

I first wrote about John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS ) on June 14 of this year. In that initial thesis, I argued that "Managers are properly incentivized to pursue shareholder interests, and they have done so, increasing the firm's economic profitability, generating An economics graduate with a passion for financial history; I apply my knowledge to markets in an effort to hopelessly predict trends and spot value. All opinions are my own and should not be taken seriously. Analyst's Disclosure: I/ ...

John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) Q4 2024 Earnings Call Transcript August 21, 2024 10:00 AM ET Company Participants Jeffrey Sanfilippo - CEO Frank Pellegrino - CFO Jeffrey Sanfilippo [Technical Difficulty] 2024 Fourth Quarter Earnings Conference Call. Thank you for joining us. On the call with me today is Frank Pellegrino, our CFO; and Jasper Sanfilippo, our COO. We may make some forward-looking statements today. These statements are based on our current expectations and they involve certain risk ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 27, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 0 ...