John B Sanfilippo Q1 sales fall on lower selling prices
JBSS•John B. Sanfilippo & Son’s fiscal first-quarter net sales fell 3.5% year over year to $288.14 million, while diluted EPS dropped 30.2% to $1.11.
1. Sales and earnings decline
Fiscal first-quarter net sales fell 3.5% year over year to $288.14 million, and diluted EPS declined 30.2% to $1.11. Gross profit was $48.90 million, with a gross margin of 17%.
2. Pricing and costs weigh
The company attributed the sales decline mainly to lower average selling prices tied to product mix shifts and lower prices for walnuts, trail mixes and peanuts. Gross profit fell amid competitive pricing, delayed price changes, higher freight and maintenance costs, and an unfavorable mix shift. Lower private-brand and bar sales in the consumer channel also weighed on volume.
3. Company outlook
The company expects increased contract manufacturing volume to offset lost consumer volume, affecting sales mix. It sees growth opportunities in nut, trail mix and protein-forward bar categories and is reviewing its cost structure to improve efficiency.
