John B. Sanfilippo & Son(JBSS) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 fiscal 2026 increased by $22.5 million, or 8.1%, to $298.7 million, driven by an 8.9% increase in the weighted average selling price per pound [3]. - Diluted earnings per share (EPS) rose 59% to $1.59, reflecting strong operational efficiencies and strategic execution [5]. - Gross profit increased by $7.6 million to $54.1 million, with gross profit margin improving to 18.1% from 16.9% year-over-year [8]. - Total operating expenses decreased by $2.5 million, resulting in a reduction of operating expenses as a percentage of net sales to 9.1% from 10.7% [9]. Sales Volume and Distribution Channels - Sales volume in the consumer distribution channel decreased by 5.1%, primarily due to a reduction in private brand sales volume [4]. - The commercial ingredients distribution channel saw a sales volume increase of 12.8%, driven by new business and higher peanut butter volume [6]. - The contract manufacturing distribution channel experienced an 18.4% increase in sales volume, attributed to increased granola and snack nut sales [7]. Inventory and Costs - Inventory value increased by $40.2 million, or 20.6%, due to higher commodity acquisition costs and preparation for anticipated holiday demand [10]. - The weighted average cost per pound of raw nut and dried fruit input stock increased by 24.8% year-over-year due to higher acquisition costs [10]. Assets and Liabilities - Total assets increased to $598.682 billion in September 2025, up from $597.603 billion in June 2025, and $519.367 billion in September 2024 [20]. - Current assets decreased to $333.518 billion in September 2025 from $346.424 billion in June 2025, while inventories decreased to $234.716 billion from $254.600 billion [20]. - Total stockholders' equity rose to $362.784 billion in September 2025, compared to $360.697 billion in June 2025 and $310.803 billion in September 2024 [20]. - Long-term debt, less current maturities, increased to $29.827 billion in September 2025 from $14.564 billion in June 2025, indicating a significant rise in leverage [20]. - Current liabilities decreased to $136.669 billion in September 2025 from $156.046 billion in June 2025, reflecting improved short-term financial health [20]. - The total liabilities increased to $236.898 billion in September 2025 from $236.906 billion in June 2025, reflecting a stable leverage position despite increased long-term debt [20]. Cash Flow and Expense Management - Cash accounts receivable, net, increased to $84.368 billion in September 2025 from $76.656 billion in June 2025, indicating better collection efficiency [20]. - Retained earnings grew to $222.728 billion in September 2025, up from $221.495 billion in June 2025, showing continued profitability [20]. - Accrued expenses decreased to $31.054 billion in September 2025 from $36.748 billion in June 2025, suggesting improved expense management [20]. - The company reported a decrease in accounts payable to $51.616 billion in September 2025 from $60.479 billion in June 2025, indicating a reduction in outstanding obligations [20]. Strategic Focus - The company aims to focus on growing sales volume, delivering customer value, and improving profitability moving forward [11].