John B. Sanfilippo & Son(JBSS) - 2025 Q4 - Annual Results

Executive Summary & Highlights Fiscal 2025 Fourth Quarter Highlights John B. Sanfilippo & Son, Inc. reported a 33.7% increase in diluted EPS to $1.15 per share for the fourth quarter of fiscal 2025, despite a slight decrease in net sales and gross profit. Sales volume saw a decline | Metric | FY25 Q4 Value | Change | Prior Q4 Value | Source Chunk | | :----- | :------------ | :----- | :------------- | :----------- | | Sales volume | 86.2 million pounds | -5.9% | 91.6 million pounds | [4] | | Net sales | $269.1 million | -0.2% | $269.6 million | [4] | | Gross profit | $48.8 million | -2.4% | $50.0 million | [4] | | Diluted EPS | $1.15 per share | +33.7% | $0.86 per share | [4] | Fiscal 2025 Full Year Highlights For the full fiscal year 2025, the Company achieved record net sales of $1.11 billion, an increase of 3.8%, driven by higher sales volume. However, gross profit decreased, and diluted EPS saw a slight decline | Metric | FY25 Full Year Value | Change | Prior Full Year Value | Source Chunk | | :----- | :------------------- | :----- | :-------------------- | :----------- | | Sales volume | 358.3 million pounds | +3.4% | 346.5 million pounds | [4] | | Net sales | $1.11 billion | +3.8% | $1.07 billion | [4] | | Gross profit | $203.5 million | -5.0% | $214.1 million | [4] | | Diluted EPS | $5.03 per share | -2.3% | $5.15 per share | [4] | CEO Commentary & Strategic Outlook The CEO acknowledged a challenging operating environment but highlighted positive momentum in the latter half of fiscal 2025, marked by significant diluted EPS growth in Q3 and Q4. The company achieved record net sales, made substantial investments in manufacturing, and increased shareholder returns through dividends. Looking ahead to fiscal 2026, the focus remains on executing the strategic plan, growing sales volume across all channels, disciplined cost management, and operational efficiencies, while acknowledging ongoing external uncertainties - Diluted EPS growth showed positive momentum, increasing by 49.6% in Q3 and 33.7% in Q4, despite financial performance falling short of initial expectations for the full year[3] - Net sales reached a record $1.11 billion, surpassing the $1 billion mark for the second consecutive year[3] Dividend Increases | Dividend Type | Change | New Amount ($ per share) | Payment Date | Source Chunk | | :------------ | :----- | :----------------------- | :----------- | :----------- | | Annual Dividend | +5.9% | $0.90 | September 11, 2025 | [3] | | Special Dividend | N/A | $0.60 | September 11, 2025 | [3] | - The company is committed to executing its strategic plan for fiscal year 2026, focusing on growing sales volume across all three distribution channels, disciplined cost management, and driving further operational efficiencies[16] - Significant external uncertainties, including tariffs, inflation, unpredictable commodity costs, and broader macroeconomic challenges, are recognized as factors requiring agility and responsiveness[16] Fiscal 2025 Fourth Quarter Results Net Sales Net sales for the fourth quarter of fiscal 2025 slightly decreased by $0.5 million, or 0.2%, to $269.1 million. This decline was primarily due to a 5.9% decrease in sales volume, largely offset by a 6.0% increase in the weighted average selling price per pound, driven by higher commodity acquisition costs Q4 Net Sales Breakdown | Metric | FY25 Q4 Value | Change (%) | Reason | Source Chunk | | :----- | :------------ | :--------- | :----- | :----------- | | Net Sales | $269.1 million | -0.2 | Primarily due to sales volume decrease, offset by price increase | [5] | | Sales Volume | N/A | -5.9 | Decrease across most product types, except peanuts, walnuts, pecans | [5] | | Weighted Average Selling Price per Pound | N/A | +6.0 | Mainly due to higher commodity acquisition costs for peanuts and most tree nuts (except pecans) | [5] | Sales Volume by Distribution Channel Fourth quarter sales volume showed varied performance across distribution channels, with significant declines in the Consumer channel, while Commercial Ingredients and Contract Manufacturing channels experienced notable growth Consumer Distribution Channel Sales volume in the Consumer Distribution Channel decreased by 11.5%, driven by reductions in both Private Brand (-10.7%) and Branded (-19.7%) sales. Key factors included reduced bar sales following a national brand recall in the prior year, strategic decisions to reduce sales to certain retailers, lost distribution, discontinuation of peanut butter, and softer demand for various snack products due to higher retail prices Q4 Consumer Channel Sales Volume Changes | Category | Change (%) | Key Reasons | Source Chunk | | :------- | :--------- | :---------- | :----------- | | Overall Consumer Channel | -11.5 | Driven by Private Brand and Branded declines | [6] | | Private Brand | -10.7 | 16.7% reduction in bars volume (due to prior year recall impact, reduced sales to grocery retailer, lost distribution); 8.5% decrease in other product types (peanut butter discontinuation, softer demand for snack/trail mix/mixed nuts/almonds) | [6] | | Branded | -19.7 | 42.9% reduction in Orchard Valley Harvest sales due to lost distribution to a major non-food customer | [7] | Commercial Ingredients Distribution Channel The Commercial Ingredients Distribution Channel experienced an 8.7% increase in sales volume, primarily fueled by higher peanut butter volume to existing customers and an increase in peanut volume - Sales volume increased by 8.7%, mainly due to increased peanut butter volume to existing customers and higher peanut volume[8] Contract Manufacturing Distribution Channel Sales volume in the Contract Manufacturing Distribution Channel grew by 18.7%, driven by increased granola volume processed at the Lakeville facility, new snack nut sales, and higher peanut sales to a major customer - Sales volume increased by 18.7%, driven by increased granola volume, snack nut sales to a new customer, and increased peanut sales volume to a major customer[9] Gross Profit Gross profit for the fourth quarter decreased by $1.2 million to $48.8 million, resulting in a margin decline from 18.5% to 18.1% of net sales. This was primarily due to higher commodity acquisition costs, partially offset by increased production volume and improved manufacturing efficiencies Q4 Gross Profit Performance | Metric | FY25 Q4 Value | FY24 Q4 Value | Change | Source Chunk | | :----- | :------------ | :------------ | :----- | :----------- | | Gross Profit | $48.8 million | $50.0 million | -$1.2 million | [10] | | Gross Profit Margin | 18.1% of net sales | 18.5% of net sales | -0.4 percentage points | [10] | | Primary Driver for Decrease | Higher commodity acquisition costs for nearly all tree nuts and peanuts | N/A | N/A | [10] | | Offsetting Factors | Increased production volume, lower manufacturing spending, improved manufacturing efficiencies | N/A | N/A | [10] | Operating Expenses, net Total operating expenses decreased by $6.7 million in the fourth quarter, falling to 10.6% of net sales from 13.1% in the prior year. This reduction was mainly due to lower incentive compensation, freight, third-party warehouse, and marketing expenses, partially offset by increased rent for a new facility Q4 Operating Expenses Performance | Metric | FY25 Q4 Value | FY24 Q4 Value | Change | Source Chunk | | :----- | :------------ | :------------ | :----- | :----------- | | Total Operating Expenses | $28.6 million | $35.3 million | -$6.7 million | [13, 23] | | As % of Net Sales | 10.6% | 13.1% | -2.5 percentage points | [13] | | Primary Drivers for Decrease | Lower incentive compensation, reduced freight expense, lower third-party warehouse expenses, lower marketing and insights spending | N/A | N/A | [13] | | Offsetting Factor | Higher rent associated with new facility in Huntley, Illinois | N/A | N/A | [13] | Inventory The value of total inventories at the end of the fourth quarter increased by $58.0 million, or 29.5%, primarily due to higher commodity acquisition costs across all major tree nuts and increased quantities of finished goods in anticipation of seasonal demand. The weighted average cost per pound of raw nut and dried fruit input stock rose by 30.4% year-over-year Q4 Inventory Changes | Metric | FY25 Q4 Value | FY24 Q4 Value | Change | Source Chunk | | :----- | :------------ | :------------ | :----- | :----------- | | Total Inventories | $254.6 million | $196.6 million | +$58.0 million (+29.5%) | [14, 25] | | Weighted Average Cost per Pound of Raw Nut and Dried Fruit Input Stock | +30.4% YoY | N/A | N/A | [14] | | Primary Drivers for Increase | Higher commodity acquisition costs across all major tree nuts, higher on-hand quantities of finished goods for anticipated seasonal demand | N/A | N/A | [14] | Fiscal 2025 Full Year Results Net Sales & Sales Volume For the full fiscal year 2025, net sales increased by 3.8% to $1.11 billion, and sales volume grew by 3.4%. Excluding the Lakeville Acquisition, net sales remained relatively unchanged, and sales volume decreased by 1.7%, reflecting a decline in the consumer channel partially offset by growth in contract manufacturing Full Year Net Sales & Sales Volume | Metric | FY25 Full Year Value | Change (%) | Notes | Source Chunk | | :----- | :------------------- | :--------- | :---- | :----------- | | Net Sales | $1.11 billion | +3.8 | Relatively unchanged excluding Lakeville Acquisition | [19] | | Sales Volume | N/A | +3.4 | Primarily due to Lakeville Acquisition. Excl. acquisition, volume decreased 1.7% (Consumer channel -4.0%, Contract Manufacturing +15.4%) | [19] | Gross Profit Margin The full-year gross profit margin decreased from 20.1% to 18.4% of net sales. This decline was mainly attributed to increased commodity acquisition costs for most major tree nuts, competitive pricing pressures, and strategic pricing decisions, though partially offset by improved profitability on bars due to manufacturing efficiencies Full Year Gross Profit Margin | Metric | FY25 Full Year Value | FY24 Full Year Value | Change | Source Chunk | | :----- | :------------------- | :------------------- | :----- | :----------- | | Gross Profit Margin | 18.4% of net sales | 20.1% of net sales | -1.7 percentage points | [19] | | Primary Drivers for Decrease | Increased commodity acquisition costs (most tree nuts except pecans), competitive pricing pressures, strategic pricing decisions | N/A | N/A | [19] | | Offsetting Factors | Improved profitability on bars due to manufacturing efficiencies | N/A | N/A | [19] | Operating Expenses Total operating expenses for the full year decreased by $10.2 million to $118.8 million. This reduction was primarily driven by lower incentive compensation, advertising, and consumer insight expenses, partially offset by the non-recurrence of a bargain purchase gain from the Lakeville Acquisition and increases in wages and rent Full Year Operating Expenses | Metric | FY25 Full Year Value | FY24 Full Year Value | Change | Source Chunk | | :----- | :------------------- | :------------------- | :----- | :----------- | | Total Operating Expenses | $118.8 million | $128.9 million | -$10.2 million | [19, 23] | | Primary Drivers for Decrease | Lower incentive compensation, advertising, and consumer insight expenses | N/A | N/A | [19] | | Offsetting Factors | Non-repeat of one-time bargain purchase gain from Lakeville Acquisition, increases in wages and rent expenses (Huntley, Illinois warehouse) | N/A | N/A | [19] | Diluted EPS Full-year diluted earnings per share decreased by 2.3%, or $0.12 per diluted share, to $5.03 Full Year Diluted EPS | Metric | FY25 Full Year Value | FY24 Full Year Value | Change | Source Chunk | | :----- | :------------------- | :------------------- | :----- | :----------- | | Diluted EPS | $5.03 per share | $5.15 per share | -2.3% (-$0.12) | [19, 23] | Corporate Information Conference Call Details The Company will host an investor conference call and webcast on August 21, 2025, to discuss the financial results. Registration is required for telephone participation, and a webcast will also be available - An investor conference call and webcast is scheduled for Thursday, August 21, 2025, at 10:00 a.m. Eastern (9:00 a.m. Central)[17] - Participants can register via a provided link for telephone access or access the webcast on the Company's website (www.jbssinc.com)[17](index=17&type=chunk) About John B. Sanfilippo & Son, Inc. John B. Sanfilippo & Son, Inc. is an Illinois-based company specializing in processing, packaging, marketing, and distributing nut and dried fruit products, snack bars, and dried cheese snacks under various proprietary and private brands - The company is a processor, packager, marketer, and distributor of nut and dried fruit products, snack bars, and dried cheese snacks[18] - Products are sold under proprietary brands including Fisher®, Orchard Valley Harvest®, Squirrel Brand®, Southern Style Nuts®, and Just the Cheese®, as well as under various private brands[18] Forward Looking Statements This section provides a standard disclaimer regarding forward-looking statements, emphasizing that actual results may differ materially due to various risks and uncertainties. The company does not undertake to update these statements unless legally required - Statements using words like "will," "intends," "may," "believes," "anticipates," "should," and "expects" are forward-looking and involve risks and uncertainties[20] - Actual results could differ materially from current expectations due to factors such as sales activity, raw material costs, pricing pressures, inventory fluctuations, product safety issues, cost control, economic conditions, and the ability to implement strategic plans[20] Contacts Contact information for investor relations is provided for inquiries regarding the company's financial results - Investor Relations contacts are Frank S. Pellegrino (Chief Financial Officer) and John Beisler or Steven Hooser (Three Part Advisors, LLC)[21] - Contact numbers are 847-214-4138 for the Company and 817-310-8776 for Investor Relations[21] Financial Statements Condensed Consolidated Statements of Operations This section presents the unaudited condensed consolidated statements of operations, detailing revenues, costs, and profits for the fourth quarter and full fiscal year ended June 26, 2025, compared to the prior year | | For the Quarter Ended | | For the Year Ended | | | :--- | :--- | :--- | :--- | :--- | | | June 26, 2025 | June 27, 2024 | June 26, 2025 | June 27, 2024 | | Net sales | $269,076 | $269,572 | $1,107,246 | $1,066,783 | | Cost of sales | 220,293 | 219,571 | 903,775 | 852,644 | | Gross profit | 48,783 | 50,001 | 203,471 | 214,139 | | Operating expenses: | | | | | | Selling expenses | 17,845 | 21,047 | 78,934 | 82,694 | | Administrative expenses | 10,800 | 14,297 | 39,826 | 48,484 | | Bargain purchase gain, net | — | — | — | (2,226) | | Total operating expenses | 28,645 | 35,344 | 118,760 | 128,952 | | Income from operations | 20,138 | 14,657 | 84,711 | 85,187 | | Other expense: | | | | | | Interest expense | 1,209 | 482 | 3,552 | 2,549 | | Rental and miscellaneous expense, net | 453 | 361 | 1,849 | 1,301 | | Pension expense (excluding service costs) | 361 | 350 | 1,445 | 1,400 | | Total other expense, net | 2,023 | 1,193 | 6,846 | 5,250 | | Income before income taxes | 18,115 | 13,464 | 77,865 | 79,937 | | Income tax expense | 4,588 | 3,451 | 18,931 | 19,688 | | Net income | $13,527 | $10,013 | $58,934 | $60,249 | | Basic earnings per common share | $1.16 | $0.86 | $5.06 | $5.19 | | Diluted earnings per common share | $1.15 | $0.86 | $5.03 | $5.15 | | Weighted average shares outstanding | | | | | | — Basic | 11,670,890 | 11,627,782 | 11,655,506 | 11,615,255 | | — Diluted | 11,734,572 | 11,709,372 | 11,724,433 | 11,687,546 | (Dollars in thousands, except per share amounts) Condensed Consolidated Balance Sheets This section provides the unaudited condensed consolidated balance sheets, presenting the company's assets, liabilities, and stockholders' equity as of June 26, 2025, and June 27, 2024 | | June 26, 2025 | June 27, 2024 | | :--- | :--- | :--- | | ASSETS | | | | CURRENT ASSETS: | | | | Cash | $585 | $484 | | Accounts receivable, net | 76,656 | 84,960 | | Inventories | 254,600 | 196,563 | | Prepaid expenses and other current assets | 14,583 | 12,078 | | | 346,424 | 294,085 | | PROPERTIES, NET: | 178,219 | 165,094 | | OTHER LONG-TERM ASSETS: | | | | Intangibles, net | 16,178 | 17,572 | | Deferred income taxes | 5,782 | 3,130 | | Operating lease right-of-use assets | 27,824 | 27,404 | | Other assets | 23,176 | 8,290 | | | 72,960 | 56,396 | | TOTAL ASSETS | $597,603 | $515,575 | | LIABILITIES & STOCKHOLDERS' EQUITY | | | | CURRENT LIABILITIES: | | | | Revolving credit facility borrowings | $57,584 | $20,420 | | Current maturities of long-term debt, net | 940 | 737 | | Accounts payable | 60,479 | 53,436 | | Bank overdraft | 294 | 545 | | Accrued expenses | 36,748 | 50,802 | | | 156,045 | 125,940 | | LONG-TERM LIABILITIES: | | | | Long-term debt, less current maturities | 14,565 | 6,365 | | Retirement plan | 27,921 | 26,154 | | Long-term operating lease liabilities | 24,224 | 24,877 | | Other | 14,151 | 9,626 | | | 80,861 | 67,022 | | STOCKHOLDERS' EQUITY: | | | | Class A Common Stock | 26 | 26 | | Common Stock | 92 | 91 | | Capital in excess of par value | 139,724 | 135,691 | | Retained earnings | 221,495 | 186,965 | | Accumulated other comprehensive income | 564 | 1,044 | | Treasury stock | (1,204) | (1,204) | | TOTAL STOCKHOLDERS' EQUITY | 360,697 | 322,613 | | TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $597,603 | $515,575 | (Dollars in thousands)