John B. Sanfilippo & Son(US:JBSS)2025-04-30 20:16Financial 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].