John B. Sanfilippo’s earnings per share fall 30.2% to $1.11 in first quarter
Key Facts
John B. Sanfilippo & Son reported results for the first quarter of fiscal 2027, ended September 24, 2026, with diluted earnings per share of $1.11, down 30.2% from the year-earlier period. Net sales were $288.1 million, down $10.5 million, or 3.5%, year over year. The company said a 3.6% decline in the weighted-average selling price per pound was the primary driver of the sales decline. By contrast, sales volume remained steady at 90.5 million pounds. The results reflect a divergence between stable volumes and pressure on prices and margins during the quarter.
The company attributed the lower average selling price to a shift in product mix toward lower-priced items and to lower prices for walnuts, trail mixes and snack mixes, and peanuts as commodity purchasing costs declined. The weighted-average cost per pound of raw nut and dried fruit inventory fell 20.6% year over year at quarter-end. The company said higher volumes of peanuts purchased at lower costs contributed to the decline in the average. This was partly offset by higher purchase costs for pecans and almonds. The change in inventory costs provides context for lower selling prices, while the effect of product mix remained evident in net sales.
Performance varied across distribution channels: sales volume in the commercial ingredients channel rose 3.7%, driven by higher sales of peanuts for crushing to peanut oil manufacturers. Contract manufacturing volume also increased 41.3%, supported by additional nut sales to an existing customer. By contrast, volume in the consumer channel fell 6.7%. Private-label sales in that channel declined 6.3%, amid weakness in the nut, snack mix and peanut categories. The company also cited reduced promotional activity and the impact of previously lost business among the reasons for the channel’s contraction.
Pricing pressure and the timing of pricing actions for some products weighed on gross profit, which fell $5.2 million to $48.9 million compared with the prior-year first quarter. Gross margin declined to 17.0% of sales from 18.1% in the year-earlier period. The company attributed the margin decline, alongside pricing pressure, to higher freight, equipment repair and maintenance, and rental costs. Total operating expenses rose $2.5 million year over year. Those expenses were 10.3% of net sales, compared with 9.1% in the year-earlier quarter; the increase included professional fees, freight, rent and compensation, partly offset by lower employee incentives.
Chief Executive Jasper Sanfilippo said sales volume had been stable or improved for the third consecutive quarter. He added that diluted earnings per share improved by more than 50% compared with the fourth quarter of fiscal 2026. The comparison follows the company’s annual sales of $1.18 billion in fiscal 2026, an increase of $68.4 million from fiscal 2025. The company reported earnings per share of $0.71 and revenue of $280.43 million in the fourth quarter of fiscal 2026. These comparative figures place the first quarter of fiscal 2027 in the context of a shift from the prior quarter’s results to weaker annual performance in earnings per share and sales.
Management said it expects to make up much of the lost consumer-channel volume with additional contract manufacturing volume. It acknowledged, however, that the shift will result in a less favorable sales mix, as gross margin has declined. The company added that it is evaluating its cost structure to improve efficiency. The company’s stock closed at $67.11 on October 27, 2026, before the results announcement. The company is scheduled to discuss first-quarter results on a conference call on October 29, 2026, at 10 a.m. Eastern Time, or 9 a.m. Central Time.