In This Article:
-
Net Sales: Increased 3.4% to $301.1 million from $291.2 million in Q2 fiscal 2024.
-
Sales Volume: Increased 7.1%, partially offset by a 3.4% decrease in weighted average sales price per pound.
-
Gross Profit: Decreased $5.7 million or 9.8% compared to the previous year.
-
Gross Profit Margin: Decreased to 17.4% from 19.9% in Q2 fiscal 2024.
-
Operating Expenses: Increased $2.5 million, reaching 10.9% of net sales from 10.4% in the prior year.
-
Interest Expense: $800,000, down from $1.1 million in Q2 fiscal 2024.
-
Net Income: $13.6 million or $1.16 per diluted share, down from $19.2 million or $1.64 per diluted share in Q2 fiscal 2024.
-
Inventory Value: Increased $8.5 million or 4.3% year-over-year.
-
Weighted Average Cost per Pound: Increased 33.7% year-over-year.
-
Year-to-Date Net Sales: Increased 9.9% to $577.3 million.
-
Year-to-Date Gross Profit Margin: Decreased to 17.1% of net sales.
-
Year-to-Date Net Income: $25.3 million or $2.16 per diluted share, down from $36.8 million or $3.15 per diluted share.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
John B Sanfilippo & Son Inc (NASDAQ:JBSS) reported its largest quarterly sales volume and highest net sales in the company's history for the second quarter.
-
Sales volume increased across all three distribution channels, with a notable 28% increase in bar sales volume over the prior-year quarter.
-
The Fisher recipe brand had a successful holiday season, outperforming the category and enhancing the baking category with its branded program.
-
The company successfully relocated its warehouse distribution to a new facility, freeing up space for expanded production capabilities.
-
JBSS is focused on enhancing profitability through operational efficiencies, optimized pricing strategies, and cost optimization initiatives.
Negative Points
-
Gross profit and margins were negatively impacted by competitive pricing pressure and strategic pricing decisions, leading to decreased average selling prices.
-
Input costs for commodities like chocolate and walnuts remain elevated, causing significant margin compression.
-
The weighted average sales price per pound decreased by 3.4%, primarily due to higher sales volume of lower-priced products.
-
Operating expenses increased due to higher freight, rent, and compensation expenses, despite decreases in incentive compensation and marketing expenses.
-
Net income for the second quarter decreased to $13.6 million from $19.2 million in the same quarter of the previous year.