John B Sanfilippo Q1 sales fall on lower selling prices

Overview

• U.S. nut and dried fruit processor's fiscal Q1 net sales fell 3.5% yr/yr

• Diluted EPS for fiscal Q1 dropped 30.2% from prior year

• Gross profit declined due to pricing pressure and higher manufacturing expenses

Outlook

• Company expects to offset lost Consumer volume with increased Contract Manufacturing volume, impacting sales mix

• Company sees growth opportunities in nut, trail mix, and protein-forward bar categories

• Company is reviewing cost structure to improve efficiency amid changing market conditions

Result Drivers

• LOWER SELLING PRICES - Co said net sales decline was mainly due to lower average selling prices from product mix shift and lower prices for walnuts, trail mixes and peanuts

• HIGHER COSTS AND PRICING PRESSURE - Gross profit fell due to competitive pricing, delayed price changes, higher freight and maintenance costs, and an unfavorable product mix shift

• CONSUMER CHANNEL SOFTNESS - Lower private brand and bar sales in the consumer channel, driven by category softness, reduced promotions, and lost business, weighed on volume

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for John B. Sanfilippo & Son, Inc. is $100.00, about 49% above its October 27 closing price of $67.11

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)