John B Sanfilippo & Son (JBSS) investor relations material

Executive summary

• Net sales rose 8.1% year-over-year to $298.7 million, driven by higher average selling prices despite a slight volume decline.

• Gross profit increased 16.2% to $54.1 million, with gross margin improving to 18.1% from 16.9% last year.

• Diluted EPS surged 59% to $1.59, reflecting operational efficiencies and improved business mix.

• Board approved a special $1 per share cash dividend, returning $11.7 million to shareholders, payable December 30, 2025.

• Continued execution of long-range plan amid challenging snack food environment and evolving consumer behavior.

Financial highlights

• Net income increased to $18.7 million ($1.59 per diluted share) from $11.7 million ($1 per diluted share) year-over-year.

• Operating income rose to $27.0 million from $17.0 million year-over-year.

• Operating expenses decreased by $2.5 million, now 9.1% of net sales versus 10.7% last year.

• Interest expense doubled to $1 million due to higher average debt levels.

• Inventory value increased 20.6% to $234.7 million, reflecting higher commodity costs and seasonal build-up.

Outlook and guidance

• Management expects sustaining the current EPS growth rate may be challenging due to macroeconomic uncertainty and snack food market trends.

• Focus remains on growing sales volume, delivering best-in-class service, and driving profitability improvements.

• Priorities include optimizing commodity acquisition costs, expanding snack and nutrition bar distribution, and operational efficiencies.

• Expectation of significantly higher acquisition costs for walnuts and increases for most major tree nuts and peanuts in the 2025 crop year.

• Management anticipates sufficient liquidity from operations and credit lines to fund operations and investments over the next twelve months.