Vending

John B Sanfilippo Q3 2022 earnings dip on sales gain

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April 28, 2022

John B. Sanfilppo & Son Inc. increased sales for Q3 2022 over the prior year period, but income declined due in part to inflation costs, according to a press release. Highlights include:

• Net sales increased 5.1% from $207.9 million in Q3 2021 to $218.6 million for the quarter ending March 24, 2022, driven by an 8.1% increase in the weighted average sales price per pound. The increase in net sales from higher selling prices was offset in part by a 2.8% decrease in sales pounds, which is defined as pounds sold to customers. The increase in the weighted average selling price was attributable to price increases implemented during the current third quarter in response to higher commodity acquisition costs for all major tree nuts and peanuts and increases in freight, labor and other input costs.
• Net income fell from $14.7 million, or $1.27 per share diluted, to $11.9 million, or $1.02 per share diluted, for the comparative quarters.
• Net income fell from $47.4 million, or $4.10 per share diluted in the first three quarters of 2021 to $44.4 million, or $3.83 per share diluted, for the first three quarters of fiscal 2022.
• Sales volume in the Q3 2022 commercial ingredients distribution channel increased 11.2% mainly due to a 19.9% increase in sales volume to foodservice customers.

The increase in foodservice sales volume was attributable to improved conditions in the restaurant industry from fewer COVID-19 restrictions. However, this increase was offset in part by the impact of the Omicron surge that occurred during the beginning of the current third quarter.

Sales volume increased 3.1% in the contract packaging distribution channel due to business with a new customer that started to ship in the third quarter.

Shares traded at $83.34 today against a 52-week range of $76.57-$92.61.

The $218.6 million in quarterly revenue beat analyst expectations by $3.1 million, while the GAAP EPS of $1.02 beat expectations by 3 cents, according to Seeking Alpha.

"As anticipated, the third quarter of fiscal 2022 was challenging as we continue to navigate through this unprecedented operating environment," CEO Jeffrey T. Sanfilippo said in the press release. "The quarter had many successes, and we believe the actions taken during the quarter should improve future operating performance. As discussed last quarter, our pricing actions to help offset the inflationary input costs were fully implemented during the third quarter, but we will not see a full quarter impact of these actions until the fourth quarter."