John B. Sanfilippo & Son, the US Fisher nut maker, has booked a decrease in first-half sales on the back of “significantly” lower selling prices.
The company said revenue in the period fell to US$471.7m in the six months to 29 December, compared to $504.78m in the prior year. Sanfilippo said that sales volumes of its branded Orchard Harvest and Fisher nut products outpaced volumes of nut products produced for retailer’s private label lines.
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The company was able to improve its profit margins during the first six months of the year. Operating profit rose to $36.3m in the half, compared to $33.44m last year. However, pressure on pricing meant that operating profit growth moderated in the second quarter, remaining relatively flat at $19.7m. Sanfilippo attributed this slowdown to a “lower net sales base”. The group added that its operating profit was boosted by lower compensation and advertising expenses.
Net income increased to $23.1m from $20m last year thanks to lower interest and rental costs.
