John B. Sanfilippo & Son, Inc. (Nasdaq: JBSS):Quarterly Comparison Overview:
Net sales were virtually unchanged
Sales volume decreased by 13.0%
Gross profit dollars increased by 30.1%
Net income increased by 80.9%
John B. Sanfilippo & Son, Inc. (Nasdaq: JBSS) (the “Company”) today announced operating results for its fiscal 2012 second quarter. Net income for the second quarter of fiscal 2012 was $9.4 million, or $0.87 per share diluted, compared to net income of $5.2 million, or $0.48 per share diluted, for the second quarter of fiscal 2011. Net income for the first two quarters of fiscal 2012 was $11.8 million, or $1.09 per share diluted, compared to net income of $6.3 million, or $0.58 per share diluted, for the first two quarters of fiscal 2011. Net sales of $223.3 million for the second quarter of fiscal 2012 were virtually unchanged from net sales of $223.6 million for the second quarter of fiscal 2011. Sales volume, which is measured as pounds sold, decreased by 13.0%. Despite the decline in sales volume, net sales remained constant due to price increases that were implemented over the last twelve months for virtually all of the products that the Company sells. The decrease in sales volume in the quarterly comparison occurred primarily in the consumer distribution channel and decreased to a lesser extent in all other distribution channels. Sales volume declined for all major products except fruit and nut mixes. The sales volume decline in the quarterly comparison was mainly attributable to the impact of higher selling prices on consumer demand for the Company’s products. The decline in sales volume was also attributable in part to the loss of business with three private label customers who elected not to accept price increases. The gross profit associated with this lost business was not significant. The sales volume attributable to this lost business accounted for approximately 18% of the total sales volume decline. Limited supplies of walnuts and pecans also contributed to the total sales volume decline.