John B Sanfilippo & Son (JBSS) investor relations material

Executive summary

• Net sales for Q2 FY26 rose 4.6% to $314.8M, with a 6.3% increase to $613.5M for the first half, driven by higher average selling prices despite a 9.7% decline in sales volume.

• Gross profit increased 13.2% to $59.2M, with gross margin up to 18.8% from 17.4% year-over-year.

• Diluted EPS rose 31.9% to $1.53 per share for Q2, and six-month diluted EPS increased 44.4% to $3.12.

• Net income for Q2 was $18M ($1.53 per diluted share), up from $13.6M ($1.16 per share) in Q2 FY25; six-month net income was $36.7M ($3.12 per share).

• Operating expenses as a percentage of net sales decreased to 10.5% in Q2, reflecting cost control and efficiency gains.

Financial highlights

• Q2 income from operations was $26.0M (8.3% of net sales), up from $19.4M (6.4%) year-over-year.

• Interest expense decreased to $500K in Q2 FY26 from $800K in Q2 FY25, due to lower average debt levels.

• Cash flow from operations for the first half was $94.6M, up from $19.9M in the prior year.

• Capital expenditures for the first half were $47.3M, with full-year capex expected at $112.0M.

• Inventory at quarter-end was $235.4M, up 14.4% year-over-year, mainly due to higher commodity costs and increased finished goods.

Outlook and guidance

• Management expects sufficient liquidity from operations, credit facility, and equipment loan to fund operations and capital expenditures for the next twelve months.

• Strategic investments in bar manufacturing and innovation are expected to drive future growth, with new equipment on track for July 2026 production.

• Management expects reduced trade tariffs on imported nuts, especially cashews, to lower selling prices and support future demand.

• Ongoing capital investments are focused on expanding production capacity, efficiency, and product innovation.

• Anticipates continued cost pressures from commodities, labor, and potential tariffs, with efforts to pass on price increases to customers.