Executive Summary
JBSS reported fiscal Q1 2025 net sales of $276.2 million, up 18% year over year, with approximately $40.5 million of that reflecting contribution from the Lakeville acquisition. Excluding Lakeville, net sales rose 0.7% on a combination of modest volume growth and favorable mix. Sales volume across distribution channels climbed notably, with the consumer channel up 30.8% largely due to Lakeville’s volume. The period showcased continued category stabilization in nut and trail mix as management highlighted pricing actions intended to offset commodity cost pressures. However, gross margins contracted sharply to 16.9% from 24.4% a year earlier, driven by lower selling prices from competitive pricing pressures, higher commodity costs for peanuts and tree nuts, a one-time concession at the Lakeville site, and increased Lakeville-related manufacturing spend. Net income declined to $11.7 million ($1.00 per diluted share) from $17.6 million ($1.51) a year ago. Cash flow was mixed: operating cash flow was $8.93 million, capex was $11.90 million, and free cash flow was negative at $2.97 million. The balance sheet remains solid, with total assets of $519.4 million, total liabilities $208.6 million, and stockholders’ equity $310.8 million; liquidity is comfortable (current ratio 2.06). Management signaled ongoing investments to support growth (e.g., a 446,000 sq ft Huntley, IL facility) and a strategic emphasis on cost reductions, supply chain optimization, and AI-enabled process improvements. The company also emphasized value-channel dynamics, private label growth, and new product introductions to drive future momentum. Looking ahead, JBSS plans to optimize commodity costs, align selling prices with costs, expand snack and nutrition bar distribution, and pursue further operational efficiencies, though near-term margin recovery remains contingent on macro commodity trends and channel dynamics.
Key Performance Indicators
QoQ: -6.20% | YoY:-18.38%
QoQ: 15.68% | YoY:-30.80%
QoQ: 16.44% | YoY:-33.71%
QoQ: 16.28% | YoY:-34.21%
Key Insights
Revenue performance: Net sales rose 18.0% to $276.196 million, including approximately $40.5 million from Lakeville. Excluding Lakeville, net sales increased 0.7% YoY, driven by a modest volume uptick and higher weighted-average price per pound. Gross profit: $46.544 million, down 18.4% YoY and down 6.2% QoQ, with gross margin at 16.9% vs 24.4% prior year. Operating income: $17.007 million, down 30.8% YoY but up 15.7% QoQ (as cost baselines and mix shifted). EBITDA: $23.864 million. Net income: ...
Financial Highlights
Revenue performance: Net sales rose 18.0% to $276.196 million, including approximately $40.5 million from Lakeville. Excluding Lakeville, net sales increased 0.7% YoY, driven by a modest volume uptick and higher weighted-average price per pound. Gross profit: $46.544 million, down 18.4% YoY and down 6.2% QoQ, with gross margin at 16.9% vs 24.4% prior year. Operating income: $17.007 million, down 30.8% YoY but up 15.7% QoQ (as cost baselines and mix shifted). EBITDA: $23.864 million. Net income: $11.659 million, down 33.7% YoY but up 16.4% QoQ. EPS: $1.00 diluted, down 34.2% YoY and up 16.3% QoQ. Margin context: gross margin 16.9%; operating margin 6.16%; pre-tax margin 5.69%; net margin 4.22%. Balance sheet and liquidity: cash and equivalents $0.442 million; total assets $519.367 million; total liabilities $208.564 million; stockholders’ equity $310.803 million; current ratio 2.06; quick ratio 0.665; cash ratio 0.00316. Cash flow: net cash provided by operating activities $8.934 million; capital expenditures $11.900 million; free cash flow negative $2.967 million; dividends paid ($24.404) million; net cash provided by financing activities $2.980 million; net change in cash $(0.042) million; cash at end of period $0.442 million. Inventory and working capital: ending inventories up $19.8 million (11.3%), driven by $21.1 million tied to Lakeville; excluding Lakeville, inventories declined modestly by <1%. Leverage and efficiency: total debt $80.618 million; net debt $80.176 million; debt-to-capitalization around 0.206; interest coverage ~32.96x. Market multiples (as of report date): P/E ~23.9x; P/B 3.59x; P/S 4.04x; dividend yield ~2.19%; free cash flow yield and cash-flow-based metrics show sensitivity to working capital and capex cycles.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
276.20M |
17.98% |
2.46% |
| Gross Profit |
46.54M |
-18.38% |
-6.20% |
| Operating Income |
17.01M |
-30.80% |
15.68% |
| Net Income |
11.66M |
-33.71% |
16.44% |
| EPS |
1.00 |
-34.21% |
16.28% |
Key Financial Ratios
operatingProfitMargin
6.16%
operatingCashFlowPerShare
$0.77
freeCashFlowPerShare
$-0.26
Management Commentary
Key insights from management commentary on the earnings call: Themes: Strategy and growth trajectory: “the highlight for this quarter is sales volume increased 24.5% to 91.2 million pounds,” underscoring broad-based volume strength across channels driven by Lakeville integration and new capacity. Management highlighted the expansion into Huntley, IL (a 446,000 sq ft facility) to increase manufacturing and packaging capacity and accommodate holiday-season demand. Market conditions and pricing: “the category may be challenged by increasing commodity costs and corresponding selling prices in the next few quarters, but we remain optimistic that the strategic pricing actions we initiated last quarter will continue to drive positive momentum” and emphasized ongoing price adjustments to balance margins with product quality. Margin and cost dynamics: “margin compression due to several factors,” including higher costs for chocolate, cashews and almonds, rising walnut costs, and a one-time concession in Lakeville due to capacity constraints. Efficiency and technology: “AI technology is already having an extraordinary impact… internal team to assess how JBSS can use AI to enhance our systems and processes” and focus on cost savings and supply-chain optimization. Category and brand performance: “Circana all-outlet panel data” showed first-quarter growth in the broader snack aisle; private label and club-channel momentum; Southern Style Nuts shipments up 57% in pounds; Orchard Valley Harvest up 14.3% in pounds; Lakeville’s private label growth contributing to increased distribution; emphasis on new product launches in Q2 FY25. Operational priorities: continue to optimize commodity costs and price alignment, grow snack and trail mix categories, expand snack and nutrition bar distribution, and pursue additional operational efficiencies. Investor takeaway: JBSS is scaling through Lakeville while actively addressing margin pressures with efficiency initiatives and strategic pricing; execution of integration and capacity expansion will be critical to sustaining growth and profitability.
The highlight for this quarter is sales volume increased 24.5% to 91.2 million pounds.
— Jeffrey Sanfilippo
margin compression due to several factors. To get back to normalized margins, a major priority is to continue to focus on operational efficiencies and optimizing our supply chain.
— Frank Pellegrino
Forward Guidance
Management outlined a pathway to normalized margins through ongoing cost-savings and supply-chain optimization, price alignment with input costs, and increased manufacturing efficiency. The company expects the Lakeville integration to contribute volume and channel growth while recognizing that commodity inflation and some nut-price volatility (e.g., walnuts, cashews, almonds) can exert pressure on margins in the near term. Strategic initiatives include incremental capacity from the Huntley distribution center, expanded private-label and club-channel penetration (OVH and Southern Style Nuts), and increased distribution of snack and nutrition bars. AI-driven process improvements are being pursued to reduce costs and enhance forecasting, procurement, and production scheduling. Investors should monitor: (1) commodity cost trends and the pace of selling-price realization, (2) the rate of capacity utilization at Lakeville and the new Huntley facility, (3) private-label mix and distribution gains, and (4) the progress and impact of AI initiatives on cost structures and reliability of supply.