Sanfilippo & Sons Reports Sales Drop In Q3
Net sales at John B. Sanfilippo & Son, Inc. were down 4% in the third quarter as an increase in the company’s weighted average selling price per pound could not offset the decrease in sales volume.
For the quarter ended March 27, net sales were $260.9 million, down 4%. Sales volume decreased 7.9% to 84.7 million pounds, while the weighted average selling price per pound was up 4.2%. Gross margin was up 3.3%, and diluted earnings per share increased 49.6% to $1.72 per share.
Company officials said the increase in the weighted average selling price resulted from higher commodity acquisition costs for all major tree nuts. Sales volume declined for substantially all major product types in the third quarter.
Sales in Sanfilippo’s Consumer Distribution Channel were down 9.2%, with its private label business down 8.3%. The decrease was driven by a 16% reduction in bars volume due to reduced sales to a mass retailer. The company’s strategic decision to reduce sales to a grocery store retailer and lost distribution at another grocery retailer further contributed to the decline in bars volume.
Additionally, decreases in sales of almonds, snack nuts, and trail mix caused by increased retail prices and the discontinuation of peanut butter at the same mass retailer contributed to the reduction in sales volume.
These declines were partially mitigated by increased sales of walnuts and pecans at the same retailer, along with new distribution at two grocery store customers.
“Like other snack food companies, our third quarter performance was impacted by a challenging macroeconomic and consumer environment,” said Jeffrey T. Sanfilippo, the company’s CEO. “The sales volume decline, coupled with the risk of additional declines due to rising retail selling prices and changing consumer behavior, underscores our strategic priority to execute on our Long-Range Plan and adapt our strategies to meet evolving customer needs.”
To support its Long-Range Plan, Sanfilippo said the company by the end of fiscal 2026 will spend approximately $90 million on equipment to expand its domestic product capabilities and improve related infrastructure.
“This historic investment in production equipment and infrastructure in our U.S. facilities reflects our confidence in domestic manufacturing,” he said.
