John B. Sanfilippo & Son Reports Q3 Fiscal 2025 Results with Decrease in Net Sales

John B. Sanfilippo & Son, Inc. reported its financial results for the third quarter of fiscal 2025, revealing a net sales figure of $260.9 million, a decrease of 4.0% from $271.9 million in the same quarter of the previous year. For the first thirty-nine weeks of fiscal 2025, net sales increased by 5.1% to $838.2 million, compared to $797.2 million for the same period in fiscal 2024. The company attributed the overall increase in year-to-date sales primarily to the acquisition of snack bar assets in the previous fiscal year, although sales volume for the third quarter declined by 7.9% year-over-year.

The company's gross profit for the third quarter rose to $55.9 million, up from $49.2 million in the prior year, reflecting a gross profit margin increase to 21.4% from 18.1%. However, for the first thirty-nine weeks, gross profit decreased to $154.7 million from $164.1 million, with the gross profit margin declining to 18.5% from 20.6%. Operating expenses for the third quarter decreased by 10.2% to $27.7 million, contributing to an operating income of $28.2 million, compared to $18.4 million in the same quarter of the previous year.

In terms of operational metrics, the company reported a significant increase in inventory levels, which rose by 22.4% year-over-year to $257.8 million. This increase was driven by higher acquisition costs and quantities of finished goods and work-in-process items. The company also noted a rise in its employee headcount, which has contributed to increased labor costs, a trend expected to continue in the coming quarters.

Strategically, John B. Sanfilippo & Son has focused on expanding its product offerings and enhancing its production capabilities. The company completed additional acquisitions of snack bar production assets in the first quarter of fiscal 2025, which are expected to support growth in its bar business. The company plans to invest approximately $90 million in capital expenditures to further enhance its production capabilities and efficiency.

Looking ahead, the company anticipates challenges related to inflation, changing consumer preferences, and competitive pressures in the snack food industry. The management has indicated that it will continue to adapt its strategies to address these challenges while focusing on growth through product innovation and strategic acquisitions. The outlook remains cautious, with expectations of fluctuating commodity prices and potential impacts from economic conditions on consumer demand.