John B. Sanfilippo & Son See Private Label Gains in Q2 2023
John B. Sanfilippo & Son, a manufacturer of nut and dried fruit-based private label products, has shared its most recent quarterly results highlighted by increased net sales, including its private label items.
For the second quarter of fiscal 2023 ended Dec. 29, 2022, the Elgin, Ill.-based manufacturer saw net sales increase 8.3% year-over-year to $274.3 million, while sales volume decreased 3.8% year-over-year to 80.4 million pounds. Gross profit increased 8.2% compared to Q2 2022, reaching $56.5 million.
“Our strong quarterly performance resulted from numerous continuous improvement initiatives, a focus on reducing our operating costs and selling price alignment efforts initiated last fiscal year as a response to inflationary cost increases,” said CEO Jeffrey T. Sanfilippo. “We continue to see strong demand for our products, especially from our private brand customers in our consumer channel. Our private brand sales volume grew over 3% in the consumer channel, excluding the one-time loss of a private brand grocery customer, compared to an overall decline in the snack nut category.”
In the quarter, the company saw its private label sales volume increase 0.7%, driven by a new private brand peanut butter business at a mass merchandising retailer and increased seasonal distribution at another mass merchandising retailer. Branded product sales grew 5.0%. In addition to acquiring Just the Cheese, John B. Sanfilippo & Son launched a new line of private label nutrition bars in the quarter.
“I am also proud to announce that during the third quarter, we began to ship our new product line of private brand nutrition bars, which our team members across the organization have worked tirelessly over the last several years to develop and bring to market,” added Sanfilippo. “We start the second half of fiscal 2023 with excitement and optimism as we begin to see stabilization in the supply chain, modest downward pressure in the acquisition costs of tree nuts and the continuation of our journey to diversify our product offerings."