Vending

John B. Sanfilippo boosts earnings despite lower sales in Q2 2021

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January 28, 2021

John B. Sanfilippo & Son Inc. managed to boost earnings for the second quarter of fiscal 2021 ended Dec. 24, 2020 despite net sales falling to $233.6 million from $246.4 million for the second quarter of fiscal 2020, according to an earnings release. The decline in net sales was primarily attributable to lower selling prices for tree nuts, which resulted from lower commodity acquisition costs.

Net income for the second quarter of fiscal 2021 was $19.9 million, or $1.72 per share diluted, compared to net income of $17.5 million, or $1.52 per share diluted, for the second quarter of fiscal 2020.

Revenue missed market expectations by $2.5 million, according to Seeking Alpha, while diluted earnings per share beat expected EPS by 29 cents. Shares traded at $78.57 on Wednesday against a 52-week range of $67.75-$90.90.

Sales volume in the commercial ingredients distribution channel decreased 23.6% due to a 29.4% decline in sales volume in the foodservice business. The decline in foodservice sales volume was due to a decline in air travel, nationwide restrictions on indoor restaurant dining and restaurant closures, all of which were attributable to COVID-19.

Sales volume in the contract packaging distribution channel decreased 14.1% primarily due to the unfavorable impact of lower convenience store foot traffic in one customer's business as a result of COVID-19.

A decrease in sales volume for Fisher recipe nuts was due to lost distribution at some customers, which was offset in part by increased sales with an Internet retailer.

A decrease in sales volume for Orchard Valley Harvest was primarily driven by lower foot traffic at a major customer in the nonfood sector due to COVID-19, reduced promotional activity and lost distribution at some customers.

Sales volume increased 9.9% in the consumer distribution channel mainly due to a 13.3% increase in sales volume for private brand peanuts, trail mixes and snack mixes as consumer preferences have shifted to lower priced products due to current economic conditions. Increased sales for Fisher snack nuts also contributed to the sales volume increase in the consumer distribution channel.

"This is a considerable accomplishment given the trio of challenges we faced in our foodservice business, in our contract packaging distribution channel and with our Orchard Valley Harvest brand from the impact of COVID-19," CEO Jeffrey T. Sanfilippo said in the earnings release.

For an update on how the coronavirus pandemic has affected convenience services, click here.