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Dec 23, 2021
Sanfilippo Q2 2022 Earnings Report
Net sales increased due to volume growth in all distribution channels, but net income decreased due to manufacturing inefficiencies and inflationary cost increases.
Key Takeaways
John B. Sanfilippo & Son, Inc. reported an increase in net sales for the second quarter of fiscal 2022, driven by a rise in sales volume across all distribution channels. However, net income decreased due to manufacturing scheduling inefficiencies, inflationary cost increases, and increased operating expenses.
Net sales increased by 8.4% compared to the second quarter of fiscal 2021.
Sales volume increased by 6.0%, with growth in all distribution channels.
Net income decreased by 33.4% compared to the second quarter of fiscal 2021.
Gross profit decreased by 1.1%, with gross profit margin decreasing to 20.6%.
Sanfilippo
Sanfilippo
Forward Guidance
The company expects that pricing actions implemented by the early part of the third quarter are intended to significantly offset inflationary input costs. However, additional pricing action may be required if these inflationary costs exceed current expectations.
Positive Outlook
- Pricing actions are expected to fully implemented by the early part of the third quarter
- Pricing actions are intended to significantly offset inflationary input costs
- Company continues to focus on long-term strategic plan
- Company is investing in brands and customers
- Company is exploring potential acquisitions
Challenges Ahead
- Inefficiencies from supply chain issues
- Higher than anticipated inflationary input costs
- Labor shortages
- These factors had a negative impact on profitability
- These factors outpaced pricing actions in respect to timing