JBSS reported a strong fourth quarter (Q4’24) with net sales of $269.6 million, up 15.1% year over year driven by the Lakeville acquisition, which contributed approximately $44.2 million of net sales in the quarter. Excluding Lakeville, Q4 net sales declined 3.8% due to a 1.9% drop in pounds sold and a 1.9% reduction in the weighted average selling price per pound, reflecting competitive pricing pressure across major nut types. The quarterly gross profit declined 8.6% to $50.0 million, with the gross margin compressing to 18.5% from 23.4% in the prior-year quarter; excluding Lakeville, gross margin would have been roughly 20.7% (reflecting the mix impact from the acquisition).
Net income for Q4’24 was $10.0 million, or $0.86 per diluted share, down from $14.7 million or $1.26 per diluted share in Q4’23. Management attributed the margin compression and near-term profitability impact to the Lakeville-related base, higher incentive compensation, and strategic investments that are expected to deliver category growth and higher sales volumes in fiscal 2025 and beyond. Net sales for the full year 2024 rose to $1.07 billion, up 6.7% largely due to Lakeville, while excluding the acquisition, 2024 net sales declined 5.3% to $946.9 million, driven by a 3.3% volume decline and a 2% decrease in average selling price per pound.
Management commentary emphasizes a multi-year growth trajectory anchored by private-brand bar expansion, product portfolio diversification, and manufacturing capacity expansion. The company outlined a long-range plan to become a $2 billion business, supported by strategic moves such as relocating and expanding manufacturing capacity, including a 400,000 square foot warehouse at Huntley, Illinois to unlock roughly 250,000 square feet for production expansion. The fiscal 2024 earnings call highlighted ongoing headwinds in the snack category (inflation and demand shifts) and commodity cost pressures (notably chocolate and cashews), while stressing continued focus on cost optimization, brand investments, and category-driven promotions. Overall, the quarter and year set up JBSS for mid-to-long-term growth despite near-term margin compression and higher working-capital needs.