John B. Sanfilippo & Son, Inc. Reports Fiscal 2026 Second Quarter Results

Record Breaking Net Sales Drove a Diluted EPS Increase of 31.9% to $1.53 per Share

ELGIN, Ill.--(BUSINESS WIRE)--John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) (the “Company”) today announced financial results for its fiscal 2026 second quarter ended December 25, 2025.

Second Quarter Summary

• Net sales increased $13.7 million, or 4.6%, to $314.8 million
• Sales volume decreased 9.3 million pounds, or 9.7%, to 87.0 million pounds
• Gross profit increased 13.2% to $59.2 million
• Diluted EPS increased 31.9% to $1.53 per share

CEO Commentary

“We delivered strong top-line growth and achieved an approximately 32% increase in diluted earnings per share for the quarter, driven by executing our ongoing strategic initiatives of disciplined cost management, operational efficiencies and strategic pricing actions. While these results are encouraging, we continue to navigate headwinds from shifting consumer behavior, emerging health and wellness trends and elevated retail selling prices, which weighed on overall sales volume. However, we have a strong and diverse set of products that align with these emerging health and wellness trends and priorities, and we are further expanding our pipeline with new innovations to capitalize on these trends and growth opportunities. We believe that the recent reduction in trade tariffs on most imported nuts, primarily cashews, should help lower selling prices of certain products over time and support future demand. I am confident that we have the right team, capabilities and focus to navigate this dynamic environment successfully, capitalize on growth opportunities and deliver long-term value for our shareholders,” stated Jeffrey T. Sanfilippo, Chief Executive Officer.

Second Quarter Results

Net Sales

Net sales for the second quarter of fiscal 2026 increased $13.7 million, or 4.6%, to $314.8 million. This increase was primarily driven by a 15.8% increase in the weighted average selling price per pound, which was partially offset by a 9.7% decline in sales volume (pounds sold to customers). The increase in the weighted average selling price per pound was largely attributable to higher commodity acquisition costs for all major tree nuts and peanuts. Sales volume decreased across most major product types. Approximately half of the sales volume decline was attributable to granola sold in the contract manufacturing channel, a non-core and temporary business opportunity, while our core business of walnuts, almonds, and pecans achieved volume growth during the quarter.

Sales Volume

Consumer Distribution Channel -8.4%

The decrease in sales volume was primarily driven by a 7.9% decline in private brand sales, due to lower volumes in private label bars and, to a lesser extent, nuts and trail mix. Nuts and trail mix sales were impacted by higher retail prices, soft demand, including consumer downsizing, and reduced distribution at a major mass merchandiser. These declines were partially offset by new business with an existing customer and improved performance at another mass merchandiser. Bar sales declined as prior year’s volumes were elevated by low industry-wide inventory levels and the lingering impact of a national brand recall, which temporarily boosted private label bars demand. A strategic reduction in sales to one grocery retailer also contributed to the bars decline. Branded sales were negatively impacted by lost distribution of Orchard Valley Harvest at a major non-food customer and the timing of Fisher snack promotions also at a major non-food customer.

Commercial Ingredients Distribution Channel -1.1%

Sales volume remained relatively unchanged, with a decline of 1.1%.

Contract Manufacturing Distribution Channel -26.5%

This reduction in sales volume was primarily driven by the decreased granola volume processed at our Lakeville facility, which was partially offset by increased snack nut sales to a customer added during the second quarter of the prior year.

Gross Profit

Gross profit increased $6.9 million to $59.2 million and gross profit margin increased to 18.8% of net sales from 17.4% of net sales in the prior year’s second quarter. This improvement was primarily driven by higher net sales during the quarter, with selling prices more closely aligned with commodity acquisition costs compared to the second quarter of the prior year. Additionally, reduced manufacturing spending and operational efficiencies contributed to the overall increase in gross profit.

Operating Expenses, net

Total operating expenses were essentially flat compared to the prior year’s second quarter, increasing by $0.3 million. The slight increase was primarily driven by higher incentive compensation, largely offset by lower marketing, insights, freight, third-party warehouse and compensation costs. As a percentage of net sales, total operating expenses declined to 10.5% from 10.9% in the prior comparable quarter, reflecting the factors noted above, and a higher net sales base.

Inventory

The value of total inventories on hand at the end of the current second quarter increased $29.6 million, or 14.4%. The increase was driven by higher commodity acquisition costs across all major nut types except for peanuts and inshell walnuts, as well as greater on-hand quantities of work in process and finished goods inventory to support forecasted demand. The weighted average cost per pound of raw nut and dried fruit input stock on hand increased 11.8% year over year primarily due to higher acquisition costs for all major tree nuts except for inshell walnuts, partially offset by lower acquisition cost of peanuts and lower on-hand quantities of almonds and cashews.

Six Month Results

• Net Sales increased 6.3% to $613.5 million. The increase in net sales was primarily attributable to a 12.2% increase in weighted average selling price per pound, which was partially offset by a 5.3% decrease in sales volume.
• Sales volume decreased 5.3%, primarily due to lower sales volume in the consumer and contract manufacturing channels, partially offset by year-to-date growth in the commercial ingredient channel.
• Gross profit margin increased to 18.5% of net sales compared to 17.1% in the prior period. The increase was mainly attributable to the factors noted above and a one-time pricing concession in the prior year first quarter to a bar customer that did not recur in this fiscal year.
• Operating expenses decreased $2.1 million to $60.3 million. The decrease in total operating expenses was primarily driven by lower marketing and insights spending, reduced third-party warehouse costs, decreased freight expenses, lower compensation and lower third-party recruitment expenses. These savings were partially offset by an increase in incentive compensation.
• Diluted EPS increased 44.4%, or $0.96 per diluted share, to $3.12.

In closing, Mr. Sanfilippo commented, “We remain committed to driving growth and profitability to deliver long-term value to our shareholders. At the start of the third quarter, we distributed a special dividend of $1.00 per share, reflecting our strong financial position and disciplined capital allocation strategy. This return of capital to our shareholders occurred concurrently with one of the largest capital expenditure initiatives in our Company’s history. These strategic investments position us to enhance operational efficiency, expand production capacity and capture emerging market opportunities to support sustained growth and profitability.”

Conference Call

The Company will host an investor conference call and webcast on Friday, January 30, 2026, at 10:00 a.m. Eastern (9:00 a.m. Central) to discuss these results. To register for the call, please click on the Participant Registration by register using this link: Conference Registration. After registering, an email will be sent, including dial-in details and a unique access code required to join the live call. Please ensure you have registered at least 15 minutes prior to the conference call time.

This call is also being webcast by Notified and can be accessed at the Company’s website at www.jbssinc.com.

About John B. Sanfilippo & Son, Inc.

Based in Elgin, Illinois, John B. Sanfilippo & Son, Inc. is a processor, packager, marketer and distributor of nut and dried fruit products, bars, and dried cheese snacks, that are sold under the Company’s Fisher ®, Orchard Valley Harvest ®, Squirrel Brand ®, Southern Style Nuts ® and Just the Cheese ® brand names and under a variety of private brands.

Forward Looking Statements

Some of the statements in this release are forward-looking. These forward-looking statements may be generally identified by the use of forward-looking words and phrases such as “will”, “intends”, “may”, “believes”, “anticipates”, “should” and “expects” and are based on the Company’s current expectations or beliefs concerning future events and involve risks and uncertainties. Consequently, the Company’s actual results could differ materially. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where expressly required to do so by law. Among the factors that could cause results to differ materially from current expectations are: (i) sales activity for the Company’s products, such as a decline in sales to one or more key customers, or to customers or in the nut and bars categories generally, in some or all channels, a change in product mix to lower price products, a decline in sales of private brand products or changing consumer preferences, including a shift from higher margin products to lower margin products; (ii) changes in the availability and costs of raw materials and ingredients due to tariffs and other import restrictions and the impact of fixed price commitments with customers; (iii) the ability to pass on price increases to customers if commodity costs rise and the potential for a negative impact on demand for, and sales of, our products from price increases; (iv) the ability to measure and estimate bulk inventory, fluctuations in the value and quantity of the Company’s nut inventories due to fluctuations in the market prices of nuts and bulk inventory estimation adjustments, respectively; (v) the Company’s ability to appropriately respond to, or lessen the negative impact of, competitive and pricing pressures; (vi) losses associated with product recalls, product contamination, food labeling or other food safety issues, or the potential for lost sales or product liability if customers lose confidence in the safety of the Company’s products or in nuts or nut products in general, or are harmed as a result of using the Company’s products; (vii) the ability of the Company to control costs (including inflationary costs) and manage shortages or other disruptions in areas such as inputs, transportation and labor; (viii) uncertainty in economic conditions, including the potential for inflation or economic downturn leading to decreased consumer demand; (ix) the timing and occurrence (or nonoccurrence) of other transactions and events which may be subject to circumstances beyond the Company’s control; (x) the adverse effect of labor unrest or disputes, litigation and/or legal settlements, including potential unfavorable outcomes exceeding any amounts accrued; (xi) losses due to significant disruptions at any of our production or processing facilities, our inability to meet or fulfill customer orders on a timely basis, if at all, or employee unavailability due to labor shortages; (xii) the ability to implement our Long-Range Plan, including growing our branded and private brand product sales, diversifying our product offerings (including by the launch of new products) and expanding into alternative sales channels; (xiii) technology disruptions or failures or the occurrence of cybersecurity incidents or breaches; (xiv) the inability to protect the Company’s brand value, intellectual property or avoid intellectual property disputes; and (xv) our ability to manage the impacts of changing weather patterns on raw material availability due to climate change.

 

JOHN B. SANFILIPPO & SON, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
	For the Quarter Ended				For the Twenty-Six Weeks Ended
	December 25,		December 26,		December 25,		December 26,
	2025		2024		2025		2024
Net sales	$	314,777	$	301,067	$	613,460	$	577,263
Cost of sales		255,608		248,816		500,197		478,468
Gross profit		59,169		52,251		113,263		98,795
Operating expenses:
Selling expenses		21,143		22,620		39,023		42,459
Administrative expenses		12,051		10,262		21,248		19,960
Total operating expenses		33,194		32,882		60,271		62,419
Income from operations		25,975		19,369		52,992		36,376
Other expense:
Interest expense		503		772		1,487		1,288
Rental and miscellaneous expense, net		574		347		1,150		758
Pension expense (excluding service costs)		389		361		778		722
Total other expense, net		1,466		1,480		3,415		2,768
Income before income taxes		24,509		17,889		49,577		33,608
Income tax expense		6,552		4,294		12,894		8,354
Net income	$	17,957	$	13,595	$	36,683	$	25,254
Basic earnings per common share	$	1.54	$	1.17	$	3.14	$	2.17
Diluted earnings per common share	$	1.53	$	1.16	$	3.12	$	2.16
Weighted average shares outstanding
— Basic		11,690,152		11,647,791		11,680,669		11,640,598
— Diluted		11,739,426		11,710,091		11,743,313		11,713,727

 

JOHN B. SANFILIPPO & SON, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
	December 25,			June 26,			December 26,
	2025			2025			2024
ASSETS
CURRENT ASSETS:
Cash	$	2,400		$	585		$	336
Accounts receivable, net		79,823			76,656			81,200
Inventories		235,427			254,600			205,842
Prepaid expenses and other current assets		19,566			14,583			19,320
		337,216			346,424			306,698
PROPERTIES, NET:		187,613			178,219			174,129
OTHER LONG-TERM ASSETS:
Intangibles, net		15,560			16,178			16,807
Deferred income taxes		—			5,782			3,900
Operating lease right-of-use assets		26,941			27,824			29,019
Equipment deposits		40,475			12,438			7,203
Other assets		9,924			10,738			7,497
		92,900			72,960			64,426
TOTAL ASSETS	$	617,729		$	597,603		$	545,253
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving credit facility borrowings	$	10,000		$	57,584		$	49,753
Current maturities of long-term debt		3,131			941			834
Accounts payable		79,897			60,479			64,585
Bank overdraft		2,763			294			1,953
Dividends payable		11,704			—			—
Accrued expenses		40,911			36,748			32,937
		148,406			156,046			150,062
LONG-TERM LIABILITIES:
Long-term debt, less current maturities		28,839			14,564			5,969
Retirement plan		28,794			27,921			26,773
Long-term operating lease liabilities		23,142			24,224			25,754
Deferred income taxes		3,935			—			—
Other		14,489			14,151			11,064
		99,199			80,860			69,560
STOCKHOLDERS' EQUITY:
Class A Common Stock		26			26			26
Common Stock		92			92			92
Capital in excess of par value		141,665			139,724			137,858
Retained earnings		228,981			221,495			187,815
Accumulated other comprehensive income		564			564			1,044
Treasury stock		(1,204	)		(1,204	)		(1,204	)
TOTAL STOCKHOLDERS’ EQUITY		370,124			360,697			325,631
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	617,729		$	597,603		$	545,253