John B. Sanfilippo Son, Inc. (JBSS) has reported 105.85 percent jump in profit for the quarter ended Mar. 30, 2017. The company has earned $6.34 million, or $0.55 a share in the quarter, compared with $3.08 million, or $0.27 a share for the same period last year. Revenue during the quarter dropped 19.64 percent to $173.38 million from $215.74 million in the previous year period. Gross margin for the quarter expanded 454 basis points over the previous year period to 16.40 percent. Total expenses were 93.98 percent of quarterly revenues, down from 97.47 percent for the same period last year. This has led to an improvement of 348 basis points in operating margin to 6.02 percent.
Operating income for the quarter was $10.43 million, compared with $5.47 million in the previous year period.
"As we have discussed in previous quarterly releases, commodity price decreases and the loss of a bulk almond butter customer in our commercial ingredients channel had an unfavorable impact on net sales during this quarter. To offset the negative impact on net income from this sales decline, we recognized early in the current fiscal year that we would have to increase gross profit margin, capture savings in our selling and administrative expenses and grow sales volume," stated Jeffrey T. Sanfilippo, chief executive officer. "Since last years third quarter, we made significant improvements in managing our walnut inventory, aligning our selling prices and acquisition costs and leveraging our commodity procurement expertise to drive the considerable increase in our gross profit margin that occurred in the quarterly comparison. We were also successful in reducing selling and administrative expenses,” Mr. Sanfilippo noted. “Though sales volume was generally down for our brands at retail, our Fisher recipe nut and Orchard Valley Harvest brands outperformed in their respective categories in the quarterly comparison according to IRi market data,” Mr. Sanfilippo stated. “Fisher recipe nut pound volume increased by 3%, while total category pound volume declined by 7%. Pound volume for our Orchard Valley Harvest brand grew by 55%, while the total produce category pound volume only grew by 12%,” Mr. Sanfilippo noted. “Pound volume for Fisher snack nuts declined by 3%, which mirrored the pound volume decline for the entire snack nut category,” Mr. Sanfilippo stated. “Going forward, we will continue our efforts to grow sales volume, especially for our brands and in alternative distribution channels. We also anticipate that the recent sales volume growth trends in our contract packaging channel should resume with the launch of new products by several of our customers in that channel, which are expected to occur in our fiscal 2017 fourth quarter,” Mr. Sanfilippo concluded.
Debt moves up marginally
John B. Sanfilippo Son, Inc. has witnessed an increase in total debt over the last one year. It stood at $93.79 million as on Mar. 30, 2017, up 2.43 percent or $2.22 million from $91.57 million on Mar. 24, 2016. Interest coverage ratio deteriorated to 12.07 for the quarter from 6.10 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
