Vending

John B Sanfilippo boosts Q1 2022 sales, earnings

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October 26, 2021

John B. Sanfilippo & Son Inc. net sales increased to $226.3 million for the first quarter of fiscal 2022 from $210.3 million for the first quarter of fiscal 2021, according to an earnings report.

Net income for the first quarter ending Sept. 23, 2021 was $19.2 million, or $1.66 per share diluted, compared to $12.8 million, or $1.11 per share diluted, for the comparative 2021 quarter.

The sales increase resulted from a 14% increase in sales volume, which is defined as pounds sold to customers. The increase was partially offset by a 5.6% decrease in the weighted average selling price per pound. The decline in the weighted average selling price resulted from a decline in commodity acquisition costs for all major tree nuts except cashews.

Sales increased in the consumer distribution channel by 13% primarily from a 20.4% increase in private brand sales volume for trail and snack mixes and mixed nuts from new distribution at existing customers. The increase in private brand sales was partially offset by a sales decline in branded products.

Sales in the consumer distribution channel accounted for 75.1% of total sales in the current first quarter.

Sales increased 37.2% in the commercial ingredients distribution channel mainly due to a 47.8% increase in sales to foodservice customers. The increase in foodservice sales was attributable to the improved conditions in the restaurant industry from fewer COVID-19 restrictions.

Sales in the contract packaging distribution channel decreased 3.9% due to promotional activity by a customer in the first quarter of fiscal 2021 that did not repeat in the current first quarter.

The $226.3 million in quarterly revenue beat analyst expctations by $8.3 million and the GAAP EPS of $1.66 beat expectations by 27 cents, according to Seeking Alpha.

Shares traded at $84.45 Monday against a 52-week range of $67.35-$92.61.

"In the current first quarter, we reported record net income and diluted earnings per share for the fourth consecutive quarter," CEO Jeffrey T. Sanfilippo said in the press release. "The record results were driven by strong volume growth for private brands in our consumer distribution channel, the continued recovery of our foodservice business in our commercial ingredients distribution channel and lower commodity acquisition costs for most major tree nuts."