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Sep 24, 2020
Sanfilippo Q1 2021 Earnings Report
John B. Sanfilippo & Son, Inc. reported results for the first quarter of fiscal 2021, with diluted EPS of $1.11 and net income nearly equaling the record results of the previous year despite COVID-19 challenges.
Key Takeaways
John B. Sanfilippo & Son, Inc. announced its first quarter fiscal 2021 results, with net sales decreasing by 3.5% to $210.3 million and net income decreasing slightly to $12.8 million, or $1.11 per share diluted.
Net sales decreased by 3.5% due to a decline in sales volume.
Consumer distribution channel sales volume increased by 3.8%, driven by private brand and Fisher snack nuts.
Gross profit decreased by 6.9% due to the decrease in sales volume.
Net income for the quarter was $12.8 million, or $1.11 per share diluted.
Sanfilippo
Sanfilippo
Forward Guidance
The food service business has been impacted negatively as a result of COVID-19, particularly with respect to the air travel and restaurant industries. However, there has been some improvement in this business as the sales volume decline in this channel has slowed since the fourth quarter of fiscal 2020.
Positive Outlook
- Sales volume continues to grow in our consumer distribution channel primarily from distribution gains for private brand products and Fisher snack nuts
- Sales volume in our consumer distribution channel accounted for approximately 75.8% of total sales volume in the current first quarter
- Observed some improvement in the food service business as the sales volume decline in this channel has slowed since the fourth quarter of fiscal 2020
- Distribution gains for our Oven Roasted Never Fried product line
- Increased sales with Internet retailers and increased sales with other existing customers in the grocery sector offset lost distribution in Fisher recipe nuts
Challenges Ahead
- COVID-19 related challenges in our food service business
- Fisher recipe nut pound volume decreased 16%
- Orchard Valley Harvest pound volume declined 27% mainly from distribution losses
- Southern Style Nuts pound volume decreased 2% due to a distribution loss at a major retailer offset by growth in the club channel
- Net sales decreased 3.5%