JBSS 8-K
Sanfilippo John B & Son Inc (JBSS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 2025 ( |
(Exact name of Registrant as Specified in Its Charter)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition”.
On April 30, 2025, John B. Sanfilippo & Son, Inc. issued a press release regarding its financial results for the third quarter and thirty-nine weeks ended March 27, 2025. This press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The exhibits furnished herewith are listed in the Exhibit Index of this Current Report on Form 8-K.
EXHIBIT INDEX
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Exhibits |
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Description |
99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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JOHN B. SANFILIPPO & SON, INC. |
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Date: |
April 30, 2025 |
By: |
/s/ Frank S. Pellegrino |
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Frank S. Pellegrino |
Exhibit 99.1
John B. Sanfilippo & Son, Inc. Reports Fiscal 2025 Third Quarter Results
Diluted EPS Increased by 49.6% to $1.72 per Diluted Share
Elgin, IL, April 30, 2025 -- John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) (the “Company”) today announced financial results for its fiscal 2025 third quarter ended March 27, 2025.
Third Quarter Summary
CEO Commentary
“Although we saw a decrease in sales volume during the third quarter, we improved our gross profit and achieved a 50% increase in diluted earnings per share. This was driven by, among other things, strategically controlling our costs and the continued alignment of our selling prices with increasing commodity acquisition costs. Like other snack food companies, our third quarter performance was impacted by a challenging macroeconomic and consumer environment. The sales volume decline, coupled with the risk of additional declines due to rising retail selling prices and changing consumer behavior, underscores our strategic priority to execute on our Long-Range Plan and adapt our strategies to meet evolving customer needs. To support this, we are committed to investing in our future growth, planning to spend approximately $90 million on equipment to expand our domestic production capabilities and improve our related infrastructure by the end of fiscal 2026. This historic investment in production equipment and infrastructure in our U.S. facilities reflects our confidence in domestic manufacturing” stated Jeffrey T. Sanfilippo, Chief Executive Officer.
Third Quarter Results
Net Sales
Net sales for the third quarter of fiscal 2025 decreased $11.0 million, or 4.0%, to $260.9 million. This decline is attributed to a 7.9% decrease in sales volume (pounds sold to customers) that was partially offset by a 4.2% increase in the weighted average selling price per pound. The increase in the weighted average selling price primarily resulted from higher commodity acquisition costs for all major tree nuts. Sales volume declined for substantially all major product types in the third quarter.
1
Sales Volume
Consumer Distribution Channel -9.2%
This sales volume decrease was driven by a 16.0% reduction in bars volume, mainly due to reduced sales to a mass merchandising retailer following an increase in bar sales due to a national brand recall in the same quarter of the previous year. Our strategic decision to reduce sales to a grocery store retailer and lost distribution at another grocery retailer further contributed to the decline in bars volume. Additionally, decreases in sales of almonds, snack nuts and trail mix caused by increased retail prices and the discontinuation of peanut butter at the same mass merchandising retailer contributed to the overall reduction in sales volume. However, these declines were partially mitigated by increased sales of walnuts and pecans at the same retailer, along with new distribution at two grocery store customers.
The sales volume decrease was primarily driven by a 33.8% reduction in Orchard Valley Harvest sales, mainly due to delayed orders from a major customer in the non-food sector.
Commercial Ingredients Distribution Channel -8.3%
This sales volume decrease was mainly driven by decreased sales volume due to competitive pricing pressures and decreased foodservice peanut butter sales.
Contract Packaging Distribution Channel +6.0%
This sales volume increase was driven by the increased granola volume processed at our Lakeville facility. Sales to a new customer and an opportunistic sale to a current customer contributed to the overall increase. These gains were significantly offset by reduced peanut sales volume to a major customer due to soft consumer demand.
Gross Profit
Gross profit increased by $6.7 million to $55.9 million. This increase was primarily due to inventory valuation adjustments that we anticipated, driven by rising commodity input costs, which may not recur next quarter. The inventory valuation adjustment was primarily driven by the transition from a lower-cost to a higher-cost crop year for walnuts and pecans. To a lesser extent, gross profit was also impacted by favorable manufacturing efficiencies. These gains were partially offset by higher commodity acquisition costs for all major tree nuts. Gross profit margin increased to 21.4% of net sales from 18.1% of net sales in the prior comparable quarter, mainly due to the factors mentioned above.
Operating Expenses, net
Gross profit increased by $6.7 million to $55.9 million. This increase was primarily due to inventory valuation adjustments that we anticipated, driven by rising commodity input costs, which may not recur next quarter. The inventory valuation adjustment was primarily driven by the transition from a lower-cost to a higher-cost crop year for walnuts and pecans. To a lesser extent, gross profit was also impacted by favorable manufacturing efficiencies. These gains were partially offset by higher commodity acquisition costs for all major tree nuts. Gross profit margin increased to 21.4% of net sales from 18.1% of net sales in the prior comparable quarter, mainly due to the factors mentioned above.
Inventory
The value of total inventories on hand at the end of the current third quarter increased $47.1 million, or 22.4%. The increase was primarily due to higher quantities and costs of finished goods, work-in-process and almonds. Additionally, higher commodity acquisition costs for walnuts and pecans contributed to the overall increase. The weighted average cost per pound of raw nut and dried fruit input stock on hand increased 33.9% year over year mainly due to higher acquisition costs for almost all tree nuts.
* Includes Fisher recipe nuts, Fisher snack nuts, Orchard Valley Harvest and Southern Style Nuts.
2
Nine Month Results
In closing, Mr. Sanfilippo commented “As we look ahead, maintaining agility and swiftly adapting to the dynamic external environment is imperative to our business. We continue to monitor the impact and timing of import tariffs on internationally sourced items, which represent approximately 15-20% of all our raw material purchases. We are proactively working with strategic suppliers to quantify the potential impact of tariffs and develop solutions to manage cost increases while ensuring minimal disruptions to our supply chain. Additionally, we are collaborating closely with customers to assess the impact of tariffs on retail selling prices and consumer demand, and to identify solutions to attempt to mitigate the impact. Furthermore, we will continue to rigorously pursue opportunities to enhance internal efficiencies and drive long-term shareholder value.”
Conference Call
The Company will host an investor conference call and webcast on Thursday, May 1, 2025, at 10:00 a.m. Eastern (9:00 a.m. Central) to discuss these results. The dial-in numbers for this call are 1-888-596-4144 from the U.S. or 1-646-968-2525 internationally and enter the participant pass code of 9901839. This call is also being webcast by Notified and can be accessed at the Company’s website at www.jbssinc.com.
About John B. Sanfilippo & Son, Inc.
Based in Elgin, Illinois, John B. Sanfilippo & Son, Inc. is a processor, packager, marketer and distributor of nut and dried fruit products, snack bars, and dried cheese snacks, that are sold under the Company’s Fisher ®, Orchard Valley Harvest ®, Squirrel Brand ®, Southern Style Nuts ® and Just the Cheese ® brand names and under a variety of private brands.
3
Forward Looking Statements
Some of the statements in this release are forward-looking. These forward-looking statements may be generally identified by the use of forward-looking words and phrases such as “will”, “intends”, “may”, “believes”, “anticipates”, “should” and “expects” and are based on the Company’s current expectations or beliefs concerning future events and involve risks and uncertainties. Consequently, the Company’s actual results could differ materially. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where expressly required to do so by law. Among the factors that could cause results to differ materially from current expectations are: (i) sales activity for the Company’s products, such as a decline in sales to one or more key customers, or to customers or in the nut category generally, in some or all channels, a change in product mix to lower price products, a decline in sales of private brand products or changing consumer preferences, including a shift from higher margin products to lower margin products; (ii) changes in the availability and costs of raw materials and ingredients due to tariffs and other import restrictions and the impact of fixed price commitments with customers; (iii) the ability to pass on price increases to customers if commodity costs rise and the potential for a negative impact on demand for, and sales of, our products from price increases; (iv) the ability to measure and estimate bulk inventory, fluctuations in the value and quantity of the Company’s nut inventories due to fluctuations in the market prices of nuts and bulk inventory estimation adjustments, respectively; (v) the Company’s ability to appropriately respond to, or lessen the negative impact of, competitive and pricing pressures; (vi) losses associated with product recalls, product contamination, food labeling or other food safety issues, or the potential for lost sales or product liability if customers lose confidence in the safety of the Company’s products or in nuts or nut products in general, or are harmed as a result of using the Company’s products; (vii) the ability of the Company to control costs (including inflationary costs) and manage shortages or other disruptions in areas such as inputs, transportation and labor; (viii) uncertainty in economic conditions, including the potential for inflation or economic downturn leading to decreased consumer demand; (ix) the timing and occurrence (or nonoccurrence) of other transactions and events which may be subject to circumstances beyond the Company’s control; (x) the adverse effect of labor unrest or disputes, litigation and/or legal settlements, including potential unfavorable outcomes exceeding any amounts accrued; (xi) losses due to significant disruptions at any of our production or processing facilities or employee unavailability due to labor shortages; (xii) the ability to implement our Long-Range Plan, including growing our branded and private brand product sales, diversifying our product offerings (including by the launch of new products) and expanding into alternative sales channels; (xiii) technology disruptions or failures or the occurrence of cybersecurity incidents or breaches; (xiv) the inability to protect the Company’s brand value, intellectual property or avoid intellectual property disputes; (xv) our ability to manage the impacts of changing weather patterns on raw material availability due to climate change; and (xvi) our ability to operate our acquired snack bar assets and realize efficiencies and synergies from such acquisition.
Contacts:
Company: |
Investor Relations: |
Frank S. Pellegrino |
John Beisler or Steven Hooser |
Chief Financial Officer |
Three Part Advisors, LLC |
847-214-4138 |
817-310-8776 |
-more-
4
JOHN B. SANFILIPPO & SON, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
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For the Quarter Ended |
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For the Thirty-Nine Weeks Ended |
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March 27, |
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March 28, |
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March 27, |
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March 28, |
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Net sales |
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$ |
260,907 |
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$ |
271,884 |
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$ |
838,170 |
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$ |
797,211 |
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Cost of sales |
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205,014 |
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222,707 |
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683,482 |
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633,073 |
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Gross profit |
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55,893 |
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49,177 |
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154,688 |
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164,138 |
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Operating expenses: |
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Selling expenses |
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18,630 |
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18,654 |
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61,089 |
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61,647 |
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Administrative expenses |
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9,066 |
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12,171 |
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29,026 |
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34,187 |
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Bargain purchase gain, net |
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— |
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— |
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— |
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(2,226 |
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Total operating expenses |
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27,696 |
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30,825 |
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90,115 |
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93,608 |
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Income from operations |
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28,197 |
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18,352 |
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64,573 |
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70,530 |
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Other expense: |
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Interest expense |
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1,055 |
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785 |
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2,343 |
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2,067 |
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Rental and miscellaneous expense, net |
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638 |
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324 |
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1,396 |
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940 |
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Pension expense (excluding service costs) |
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362 |
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350 |
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1,084 |
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1,050 |
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Total other expense, net |
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2,055 |
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1,459 |
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4,823 |
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4,057 |
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Income before income taxes |
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26,142 |
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16,893 |
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59,750 |
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66,473 |
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Income tax expense |
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5,989 |
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3,416 |
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14,343 |
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16,237 |
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Net income |
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$ |
20,153 |
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$ |
13,477 |
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$ |
45,407 |
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$ |
50,236 |
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Basic earnings per common share |
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$ |
1.73 |
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$ |
1.16 |
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$ |
3.90 |
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$ |
4.33 |
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Diluted earnings per common share |
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$ |
1.72 |
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$ |
1.15 |
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$ |
3.87 |
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$ |
4.30 |
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Weighted average shares outstanding |
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— Basic |
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11,669,939 |
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11,626,886 |
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11,650,378 |
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11,614,388 |
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— Diluted |
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11,735,709 |
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11,698,531 |
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11,721,054 |
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11,683,579 |
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5
JOHN B. SANFILIPPO & SON, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
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March 27, |
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June 27, |
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March 28, |
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ASSETS |
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CURRENT ASSETS: |
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Cash |
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$ |
1,295 |
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$ |
484 |
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$ |
377 |
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Accounts receivable, net |
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74,538 |
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84,960 |
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75,638 |
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Inventories |
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257,798 |
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196,563 |
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210,672 |
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Prepaid expenses and other current assets |
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15,565 |
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12,078 |
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9,636 |
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349,196 |
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294,085 |
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296,323 |
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PROPERTIES, NET: |
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174,383 |
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165,094 |
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162,393 |
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OTHER LONG-TERM ASSETS: |
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Intangibles, net |
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16,490 |
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17,572 |
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17,953 |
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Deferred income taxes |
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3,605 |
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3,130 |
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651 |
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Operating lease right-of-use assets |
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28,871 |
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27,404 |
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7,409 |
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Other assets |
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17,431 |
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8,290 |
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7,199 |
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66,397 |
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56,396 |
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33,212 |
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TOTAL ASSETS |
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$ |
589,976 |
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$ |
515,575 |
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$ |
491,928 |
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LIABILITIES & STOCKHOLDERS' EQUITY |
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CURRENT LIABILITIES: |
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Revolving credit facility borrowings |
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$ |
89,602 |
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$ |
20,420 |
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$ |
32,093 |
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Current maturities of long-term debt |
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790 |
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737 |
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721 |
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Accounts payable |
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51,966 |
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53,436 |
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51,458 |
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Bank overdraft |
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942 |
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545 |
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1,351 |
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Accrued expenses |
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30,691 |
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50,802 |
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34,767 |
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173,991 |
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125,940 |
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120,390 |
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LONG-TERM LIABILITIES: |
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Long-term debt, less current maturities |
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5,765 |
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6,365 |
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6,555 |
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Retirement plan |
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27,082 |
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26,154 |
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27,570 |
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Long-term operating lease liabilities |
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25,304 |
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24,877 |
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5,553 |
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Other |
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11,221 |
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9,626 |
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10,048 |
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69,372 |
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67,022 |
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49,726 |
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STOCKHOLDERS' EQUITY: |
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Class A Common Stock |
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26 |
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26 |
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26 |
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Common Stock |
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92 |
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91 |
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91 |
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Capital in excess of par value |
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138,687 |
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135,691 |
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134,530 |
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Retained earnings |
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207,968 |
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186,965 |
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188,573 |
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Accumulated other comprehensive income (loss) |
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1,044 |
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1,044 |
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(204 |
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Treasury stock |
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(1,204 |
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(1,204 |
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(1,204 |
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TOTAL STOCKHOLDERS’ EQUITY |
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346,613 |
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322,613 |
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|
321,812 |
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TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY |
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$ |
589,976 |
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$ |
515,575 |
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$ |
491,928 |
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6