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Jun 25, 2020
Sanfilippo Q4 2020 Earnings Report
EPS was $0.89 per share diluted and net sales decreased by 5.8%.
Key Takeaways
John B. Sanfilippo & Son, Inc. reported a decrease in net sales by 5.8% and net income decreased by 8.9% for the fourth quarter of fiscal 2020. Diluted EPS was $0.89 compared to $0.98 for the same quarter last year.
Net sales decreased by 5.8% due to a decline in the weighted average selling price per pound and a decrease in sales volume.
Sales volume decreased by 2.6% overall, with increases in the consumer distribution channel offset by declines in the commercial ingredients and contract packaging channels.
Gross profit decreased by 6.6% primarily due to declines in food service and contract packaging sales volume.
COVID-19 had mixed impacts, with increased internet sales and a shift to smaller store formats, but negative impacts on the food service business.
Sanfilippo
Sanfilippo
Forward Guidance
The company believes they are well-positioned to take advantage of changes in consumer preferences with product line diversity and manufacturing capabilities and bolstered marketing and innovation leadership.
Positive Outlook
- Strong evidence of a shift in consumer preferences to shop in smaller store formats like grocery stores and via the Internet.
- Consumers are doing much more cooking and baking at home.
- Internet-based sales for our brands increased by 365% led by strong increases in our market-leading Fisher recipe nut line.
- Significant improvement in food service business as some re-openings occurred in the fourth quarter.
- The shift to larger package sizes allowed the company to capture significant efficiencies in manufacturing and distribution
Challenges Ahead
- Closures for restaurants and other food service establishments throughout the country negatively impacted our food service business.
- Food service sales volume declined by 90% compared to April 2019.
- In snack nuts and snack and trail mixes, there was a significant shift to lower priced private label products from branded products.
- Fisher recipe nut pound volume declined by 10% in the quarter due to lost distribution at a major customer in the mass merchandiser sector.
- Pound volume declined at retail by 30% in the quarter for Orchard Valley Harvest brand due to some lost distribution at one customer.