Vending

John B. Sanfilippo & Son boosts Q2 2023 sales, earnings on price hikes

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February 2, 2023

John B. Sanfilippo & Son Inc. lifted its Q2 2023 sales and earnings over the prior year period boosted by price increases, according to an earnings report. Highlights include:

• Net sales increased 8.3%, from $253.2 million in Q2 2022 to $274.3 million for the quarter ending Dec. 29, 2022, due to a 12.7% increase in the weighted average sales price per pound. This increase was partially offset by a 3.8% decrease in sales volume, which is defined as pounds sold to customers.
• Sales volume for peanuts and all major tree nuts except pecans declined in the second quarter. The increase in the weighted average selling price primarily resulted from higher commodity acquisition costs for pecans, cashews, peanuts and dried fruit.
• Net income rose from $13.25 million to $16.9 million in the comparative quarters.
• Basic EPS rose from $1.15 to $1.46, while diluted EPS rose 27.2% from $1.14 to $1.45.
• Private brand volume increased 0.7%, mostly driven by new private brand peanut butter business at a mass merchandising retailer and increased seasonal distribution at another mass merchandising retailer. This increase was substantially offset by lost distribution with a private brand grocery customer that occurred in the fourth quarter of fiscal 2022.
• Branded sales volume fell 5%, mainly due to a 24.1% decrease in the sales volume of Fisher snack nuts due to competitive pricing pressure at two grocery store retailers and lost distribution at another grocery store retailer. Additionally, sales volume for Orchard Valley Harvest decreased 14.5%, due to the timing of sales to a major customer in the non-food sector who delayed orders into the third quarter of fiscal 2023.

Shares traded Wednesday at $83.95 against a 52-week range of $64.89-$86.62.

"We continue to see strong demand for our products, especially from our private brand customers in our consumer channel," Jeffrey Sanfilippo, CEO, said in the press release. "Our private brand sales volume grew over 3% in the consumer channel, excluding the one-time loss of a private brand grocery customer, compared to an overall decline in the snack nut category."