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]
John B. Sanfilippo & Son(JBSS) - 2025 Q1 - Quarterly Report