Vending

John B Sanfilippo lifts Q1 2023 sales, earnings take a hit

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November 2, 2022

John B. Sanfilippo & Son lifted its Q1 2023 sales over the prior year period, while earnings took a hit, according to an earnings report. Highlights include:

• Net sales increased 11.6% from $226.3 million in Q1 2022 to $252.6 million for the quarter ending Sept. 29, 2022, due to a 9.6% increase in the weighted average sales price per pound and a 1.8% increase in sales volume, which is defined as pounds sold to customers. The increase in the weighted average selling price mainly resulted from higher commodity acquisition costs for all major tree nuts and peanuts.
• Net income fell from $19.35 million to $15.5 million in the comparative quarters.
• Basic earnings per common share fell from $1.67 to $1.35, while diluted EPS fell from $1.66 to $1.34.
• Private brand sales fell 0.7%, primarily driven by the lost distribution with a private brand grocery customer that occurred in the fourth quarter of fiscal 2022.
• Branded sales rose 9.3% mainly attributable to a 20% increase in the sales volume of Fisher recipe nuts, which was due to increased distribution at a mass merchandising retailer and at two grocery store customers.
• The commercial ingredients distribution channel increased 2.4% primarily due to a 15% increase in sales volume to foodservice customers related to new distribution at existing customers and the overall continued recovery in the restaurant industry from the impacts of COVID-19 restrictions.
• The contract packaging distribution channel increased 19.3% due to timing of promotional activity by a major customer and business with a new customer.

Shares traded today at $79.67 against a 52-week range of $65.66-$90.23.

"Fiscal 2023 is off to a strong start, including record first quarter net sales and volume growth across multiple distribution channels and our consumer branded business," CEO Jeffrey Sanfilippo said in the press release. "We continue to see strong demand for our products despite the current inflationary environment, as sales volume in our consumer channel grew by nearly 3%, excluding the loss of a private brand grocery customer, and our Fisher recipe nuts volume grew 20%. Sales volume within our foodservice business increased 15% as we continue to grow the channel with new distribution at existing customers coupled with the continued easing of COVID-19 restrictions."