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Mar 24, 2022
Sanfilippo Q3 2022 Earnings Report
John B. Sanfilippo & Son, Inc. reported results for the fiscal third quarter of 2022, with net sales increasing by 5.1% to $218.6 million.
Key Takeaways
John B. Sanfilippo & Son, Inc. reported a 5.1% increase in net sales for the third quarter of fiscal 2022, reaching $218.6 million. Net income decreased to $11.9 million, or $1.02 per share diluted, compared to $14.7 million, or $1.27 per share diluted, for the same quarter last year. The increase in net sales was driven by an 8.1% increase in the weighted average sales price per pound, offset by a 2.8% decrease in sales pounds.
Net sales increased by 5.1% to $218.6 million due to higher selling prices.
Net income decreased by 19.2% to $11.9 million, or $1.02 per share diluted.
Sales volume decreased by 2.8%, primarily in the consumer distribution channel.
Gross profit margin decreased to 18.0% due to higher commodity acquisition and inflationary costs.
Sanfilippo
Sanfilippo
Forward Guidance
The company anticipates numerous challenges including ongoing and potential new supply chain issues and inflationary cost pressures due to the conflict in Ukraine and the potential impact on consumption from higher retail selling prices.
Positive Outlook
- Strategic investments in people
- Strategic investments in customers
- Strategic investments in capabilities
- Pricing actions to help offset the inflationary input costs were fully implemented during the third quarter, but we will not see a full quarter impact of these actions until the fourth quarter.
- Upgrade of our peanut butter line discussed above is expected to improve our peanut butter quality and manufacturing capabilities and efficiencies
Challenges Ahead
- Ongoing and potential new supply chain issues
- Inflationary cost pressures due to the conflict in Ukraine
- Potential impact on consumption from higher retail selling prices
- Difficult cost environment
- Additional inflationary cost pressures on pecans, fuel, aluminum-based lidding stock and certain ingredients, including roasting oil