John B. Sanfilippo & Son, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 26, 2013
January 29, 2014 at 04:10 pm EST
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John B. Sanfilippo & Son Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 26, 2013. Net income for the second quarter of fiscal 2014 was $9.2 million, or $0.83 per diluted share, compared to net income of $8.3 million, or $0.76 per diluted share, for the second quarter of fiscal 2013. Net sales for the second quarter of fiscal 2014 were $225.1 million compared to net sales of $215.6 million for the second quarter of fiscal 2013. The increase in Net Sales were attributable to a 12.0% increase in sales volume, which is measured as pounds sold to customers. The favorable impact upon net sales from the increase in sales volume was offset partially by lower selling prices for all major nut types except almonds. Sales volume increased in all four distribution channels led by a significant increase in sales volume in the consumer distribution channel. The increase in sales volume in the consumer distribution channel was attributable to increased sales of private brand snack nut and trail mix products with existing customers and a 28.5% increase in volume for Fisher recipe nuts from increased merchandising activity, which occurred as a result of significantly lower pecan prices compared to pecan prices that existed in the second quarter of fiscal 2013. Income from operations was $16.4 million against $14.4 million last year. Income before income taxes was $14.5 million against $13.0 million last year.
Net income for the six months was $16.0 million, or $1.44 per diluted share, compared to net income of $15.8 million, or $1.45 per diluted share last year. Net sales increased to $401.8 million from $393.1 million for the first two quarters of fiscal 2013. The increase in net sales in the year to date comparison was primarily attributable to a 12.9% increase in sales volume. The increase in net sales from the increase in sales volume was offset in part by lower selling prices for all major nut types except almonds. Sales volume increased in the consumer, commercial ingredients and contract packaging distribution channels while sales volume was down 2.4% in the export channel in the year to date comparison. As was the case in the quarterly comparison, the increase in sales volume in the consumer channel came mainly from increased sales of private brand snack nuts and trail mixes and a 17.5% increase in sales volume for Fisher recipe nuts. Sales volume also increased significantly in the commercial ingredients and contract packaging channels primarily due to increased volume with a major existing customer in each of those channels and higher pecan sales in the commercial ingredients channel as a result of significantly lower pecan prices compared to pecan prices that existed in the second quarter of fiscal 2013. Income from operations was $28.7 million against $28.3 million last year. Income before income taxes was $25.3 million against $25.1 million last year.
John B. Sanfilippo & Son, Inc. is a processor and distributor of peanuts, pecans, cashews, walnuts, almonds and other nuts in the United States. Its nuts are sold under its Fisher, Orchard Valley Harvest, Squirrel Brand and Southern Style Nuts brand names and under a variety of private brands. It also markets and distributes a diverse product line of food and snack products, including peanut butter, almond butter, cashew butter, candy and confections, snack and trail mixes, nutrition bars, snack bites, sunflower kernels, dried fruit, corn snacks, chickpea snacks, sesame sticks and other sesame snack products under its brand names and under private brands. Its products are raw and processed nuts. The nut product line includes almonds, pecans, peanuts, black walnuts, English walnuts, cashews, macadamia nuts, pistachios, pine nuts, Brazil nuts and filberts. Its products are sold through food retailers in the consumer channel, commercial ingredient users and contract packaging customers.