US nut maker John B. Sanfilippo & Son has reported a jump in quarterly profits despite a dip in revenue.
The company, which sells brands including Fisher’s and Orchard Valley Harvest, yesterday (1 February) posted an 81% jump in second-quarter net income as it had more success “aligning selling prices and acquisition costs”, chairman and CEO Jeffrey Sanfilippo said.
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The firm’s net income in the quarter to 29 December was up 80.9% on the year at $9.4m.
However, net sales reached $223.3m in the quarter, compared to $223.6m. The company said its sales volumes fell 13% year-on-year as its price increases hit sales and led to the loss of three private-label contracts.
Nevertheless, Sanfilippo said the fall in the company’s sales in the consumer channel echoed that seen in the wider market.
“Higher selling prices and difficult economic conditions combined to have a negative impact, not only on consumer demand for many of our products, but also on the nut category as a whole,” he said. “Our sales volume decrease in the consumer distribution channel in the quarterly comparison that was attributable to the impact of higher selling prices was similar to the volume decline in the total category data.”
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By GlobalDataThe second-quarter results led to a jump in Sanfilippo’s half-year earnings. The company reported a first-half net income of $11.8m, compared to $6.3m a year earlier. Net sales increased 2.6% to $380.1m.
Looking ahead, Mr Sanfilippo said cashew prices would decline in the next three months, although walnut and peanut prices could continue to increase due to global demand.
