John B. Sanfilippo & Son Reports 3.4% Sales Increase in Q2 Fiscal 2025

John B. Sanfilippo & Son, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a net sales increase of 3.4% to $301.1 million, compared to $291.2 million in the same quarter of the previous year. For the first twenty-six weeks of fiscal 2025, net sales reached $577.3 million, marking a 9.9% increase from $525.3 million in the prior year. The growth in sales volume was notable, with a 7.1% increase in the second quarter and a 14.9% increase for the first half of the fiscal year. However, gross profit decreased by 9.8% to $52.3 million for the quarter, reflecting a decline in gross profit margin from 19.9% to 17.4%.

The company experienced significant changes in its operating expenses, which rose by 8.4% to $32.9 million in the second quarter, primarily due to increased selling expenses related to rent, freight, and compensation. Despite this increase, total operating expenses as a percentage of net sales improved slightly for the first half of the fiscal year, decreasing from 12.0% to 10.8%. The net income for the second quarter was $13.6 million, or $1.17 per share, down from $19.2 million, or $1.65 per share, in the same quarter last year. For the first twenty-six weeks, net income was $25.3 million, or $2.17 per share, compared to $36.8 million, or $3.17 per share, in the prior year.

Strategically, the company has focused on expanding its product offerings and enhancing its production capabilities. The acquisition of snack bar production assets in the first quarter of fiscal 2025 and the Lakeville Acquisition in the previous fiscal year have bolstered its ability to produce private brand snack bars. The company plans to invest approximately $90 million in capital expenditures to further enhance its production capabilities and efficiency. Additionally, it aims to grow its branded business through product innovation and increased distribution, particularly in e-commerce channels.

Operationally, the company reported an increase in total inventories, which rose by 4.3% to $205.8 million compared to the previous year. This increase was attributed to higher acquisition costs for tree nuts and increased quantities of almonds and cashews. The company also noted a decrease in the volume of raw nut and dried fruit input stocks, reflecting a shift in inventory management strategies. As of January 23, 2025, the company had 9,040,641 shares of common stock and 2,597,426 shares of Class A common stock outstanding.

Looking ahead, John B. Sanfilippo & Son, Inc. anticipates continued challenges, including rising commodity prices, labor costs, and potential economic downturns that could impact consumer demand. The company remains committed to executing its Long-Range Plan, which includes diversifying its product offerings and expanding its market presence while navigating the complexities of the current economic landscape.