Lakeville Acquisition Boosts John B. Sanfilippo & Son Q3 Revenue
John B. Sanfilippo & Son, Inc. closed out its 2024 fiscal year by hitting a corporate milestone as it exceeded $1 billion in sales for the first time in company history.
The sales highwater market came as the company reported a fourth quarter net sales increase of 15.1% to $269.6 million. Gross profit decreased 8.6% to $50 million with diluted earnings per share down 31.7% to $0.86.
Fourth quarter net sales included approximately $44.2 million in sales from the company’s Lakeville acquisition. Excluding sales from the acquisition, Sanfilippo & Son’s sales in the fourth quarter were down 3.8%.
In October of 2023, Sanfilippo & Son completed the acquisition of TreeHouse Foods’ Lakeville, Minn., manufacturing facility and snack bars business for approximately $61 million in cash.
Sanfilippo & Son officials said the decline was due to a 1.9% decrease in sales volume, which is defined as pounds sold to customers, and a 1.9% decrease in the weighted average sales price per pound. The decrease in the weighted average selling price primarily resulted from lower selling prices for all major nut types due to competitive pricing pressures and strategic pricing decisions.
Sales volume declined for peanuts, almonds, pecans and walnuts, which was partially offset by sales volume increases for cashews and snack and trail mix in the fourth quarter.
“Our fourth quarter results, although strong, were impacted by investments we made with our customers that we anticipate will deliver future benefits through category growth and increased sales volume,” said Jeffrey T. Sanfilippo, company CEO. “Additionally, we recognized and rewarded our talented team members for their outstanding contributions in executing our strategic plan.”
For the full fiscal year, net sales increased 6.7% to $1.07 billion. Excluding the impact of the Lakeville Acquisition, net sales decreased 5.3% to $946.9 million. The decrease in net sales was primarily attributable to a 3.3% decline in sales volume and a 2% decrease in weighted average selling price per pound.
“Looking ahead to fiscal 2025, we will continue to execute on our strategic plan,” said Sanfilippo. “We will focus on creating volume growth opportunities with our key customers, embracing innovation, capitalizing on opportunities to increase distribution of our private brand snack and nutrition bars, maximizing operational efficiencies, leveraging technology, and investing in our team members.”
