John B. Sanfilippo & Son reports lower earnings
John B. Sanfilippo & Son Inc. of Elgin reported fiscal first-quarter earnings of $6.6 million compared to $10.7 million for the first quarter of fiscal 2018.
The peanut and tree nut producer posted revenue of $204.3 million in the period.
Net sales decreased to $204.3 million for the first quarter of fiscal 2019 from net sales of $215.7 million for the first quarter of fiscal 2018. The decrease in net sales resulted primarily from a 3.4 percent decline in sales volume, which is defined as pounds sold to customers. The decline in sales volume mainly came from our contract packaging distribution channel, including the loss of some bulk business with an existing contract packaging customer and a reduction in unit ounce weights implemented by another contract packaging customer for its entire product line. Sales volume also declined in the commercial ingredients distribution channel due to lower sales of bulk cashews, peanut butter and walnuts primarily as a result of lost business. Sales volume increased in the consumer distribution channel by 6.9 percent, which was primarily driven by increased sales of Orchard Valley Harvest produce products and private brand trail mixes and peanuts. The sales volume increase in the consumer distribution channel also was attributable to the inclusion of sales of Southern Style Nuts snack mix products in this channel in the current quarter. For the first quarter of fiscal 2018, prior to the acquisition of the Squirrel Brand business, sales of these products were included in the contract packaging distribution channel.