On August 20, 2024, John B Sanfilippo & Son Inc (JBSS, Financial) released its 8-K filing detailing the financial results for its fiscal 2024 fourth quarter and full fiscal year ended June 27, 2024. John B Sanfilippo & Son Inc is a leading processor and distributor of peanuts, pecans, cashews, walnuts, almonds, and other nuts in the United States, marketed under various private brands and the Fisher, Orchard Valley Harvest, and Sunshine Country brand names. The company also manufactures and distributes a diverse range of food and snack products.
Fourth Quarter Performance
John B Sanfilippo & Son Inc (JBSS, Financial) reported a significant increase in sales volume and net sales for the fourth quarter of fiscal 2024. Sales volume surged by 23.5% to 91.6 million pounds, while net sales increased by 15.1% to $269.6 million. This growth was primarily driven by the Lakeville Acquisition, which contributed approximately $44.2 million in net sales. However, excluding the Lakeville Acquisition, net sales decreased by 3.8% due to a 1.9% decline in sales volume and a 1.9% decrease in the weighted average sales price per pound.
Full Year Performance
For the full fiscal year, John B Sanfilippo & Son Inc (JBSS, Financial) achieved a milestone by exceeding $1 billion in annual net sales for the first time in its history. Net sales increased by 6.7% to $1.07 billion, driven by the Lakeville Acquisition. Excluding the acquisition, net sales decreased by 5.3% to $946.9 million. Sales volume increased by 12.3%, but excluding the acquisition, it decreased by 3.3%.
Financial Achievements and Challenges
Despite the impressive sales growth, the company faced challenges in maintaining its profit margins. Gross profit for the fourth quarter decreased by 8.6% to $50.0 million, and diluted EPS fell by 31.7% to $0.86 per share. For the full year, gross profit increased slightly by 1.2% to $214.1 million, but diluted EPS decreased by 4.6% to $5.15 per share. The decline in profit margins was attributed to lower selling prices, reduced sales volume, and product mix manufacturing inefficiencies.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Sales | $269.6M | $234.2M | $1.07B | $999.7M |
| Gross Profit | $50.0M | $54.7M | $214.1M | $211.6M |
| Diluted EPS | $0.86 | $1.26 | $5.15 | $5.40 |
CEO Commentary
"I am proud to report a successful and historic fiscal 2024 as we exceeded $1 billion in annual net sales for the first time in our company’s history. We also successfully executed a key component of our strategic plan by further diversifying our product offering through the acquisition, integration, and optimization of our Lakeville bar facility and operations. Our snack and nutrition bar offering generated approximately $131.0 million in net sales for the fiscal year, of which $120.0 million was related to the Lakeville Acquisition. In addition, we made substantial progress in optimizing the operations in Lakeville, ahead of schedule, and are excited about the expected impact it will have on our operating results in fiscal 2025 and beyond." - Jeffrey T. Sanfilippo, Chief Executive Officer
Analysis and Outlook
John B Sanfilippo & Son Inc (JBSS, Financial) demonstrated strong sales growth driven by strategic acquisitions and product diversification. However, the company faces challenges in maintaining profit margins due to competitive pricing pressures and manufacturing inefficiencies. The successful integration of the Lakeville Acquisition and the optimization of its operations are expected to positively impact future performance. The company's focus on innovation, operational efficiencies, and strategic customer relationships will be crucial in navigating the challenging operating environment and delivering long-term value to shareholders.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from John B Sanfilippo & Son Inc for further details.
