John B. Sanfilippo & Son, Inc. reported second quarter net sales of $314.8 million, a 4.6% increase year-over-year driven by a 15.8% rise in weighted average selling price per pound. Despite a 9.7% decline in sales volume to 87.0 million pounds, gross profit rose 13.2% to $59.2 million, lifting gross margin to 18.8% from 17.4% a year ago. Diluted earnings per share climbed 31.9% to $1.53, outperforming analysts’ consensus of $1.36.

Volume in the consumer distribution channel fell 8.4%, primarily from lower private brand bars and nuts sales due to elevated retail prices and soft demand, while branded items faced lost distribution at key non-food retailers. The commercial ingredients channel held nearly flat with a 1.1% decline, and contract manufacturing volume plunged 26.5% amid reduced granola processing at Lakeville. Core walnut, almond and pecan volumes nevertheless recorded modest gains.

Operating expenses remained effectively unchanged, increasing by just $0.3 million, as higher incentive compensation was offset by reductions in marketing, freight and third-party warehouse costs. As a percentage of net sales, operating expenses fell to 10.5% from 10.9% in the prior year quarter. Inventory on hand rose 14.4% to support demand forecasts, reflecting higher commodity acquisition costs and greater work-in-process levels.

CEO Jeffrey T. Sanfilippo highlighted disciplined cost management, strategic pricing and tariff reductions on imported nuts as key drivers of margin improvement. The company distributed a $1.00 special dividend at the start of Q3 and initiated one of its largest capital expenditure programs to expand capacity and enhance efficiency. Management emphasized ongoing innovation in health-focused products to capture emerging market opportunities and deliver long-term shareholder value.