Sales increase offsets lower prices for Sanfilippo in 1Q

Business Wire

ELGIN - John B. Sanfilippo & Son Inc. said net sales for the first quarter of fiscal year 2017 was down 1.5 percent amid lower prices for its nut products, but increases sales boosted overall income.

However, income for the quarter was $10.2 million, or 89 cents per share diluted, up from $8 million, or 71 cents per share diluted, for the first quarter of fiscal 2016.

Net sales were $222.3 million for the first quarter, down from $225.8 million for the first quarter of fiscal 2016. The decline in net sales primarily resulted from lower selling prices for products containing walnuts and almonds due to lower commodity acquisition costs for those nuts.

Sales volume, which is defined as pounds sold to customers, rose by 9.7 percent in the quarterly comparison. The sales volume increase was driven mainly by increases in sales of peanuts, walnuts, pecans and almonds, and sales volume increased in all distribution channels.

The majority of the total sales volume increase occurred in the consumer distribution channel primarily from increased sales of our branded products.

"Net income and diluted earnings per share reached record levels for a first quarter due to a significant increase in sales volume and improved gross profit margin," said CEO Jeffrey T. Sanfilippo. "Approximately 50 percent of the total sales volume increase came from increased sales of our branded products. As was the case in fiscal 2016, sales volume growth for our brands continues to outpace sales volume growth for our private brand products."