SANFILIPPO JOHN B & SON INC Q4 FY2025 earnings call

• Honored the life and legacy of Mike Valentine, former President. - Navigated challenging operating environment in 2025, saw diluted EPS growth, increased net sales to record, and made investments in manufacturing. - Three key themes: - Navigating tariffs and rising costs: Proactively monitor trade, material costs, etc., and respond with agility. - Adapting to shifts in consumer behavior: Stay attuned to consumer trends, optimize price pack architecture, and expand private label programs. - Driving growth through innovation and portfolio expansion: Invest in manufacturing capabilities expansion to broaden product portfolio. - Focus for fiscal '26: Accelerate volume growth, rebuild nut and trail business, and expand manufacturing capabilities.

Fourth quarter of fiscal 2025 net sales decreased slightly by 0.2% to $269.1 million, compared to $269.6 million in the same period of fiscal 2024. The slight decline was due to a 5.9% decrease in sales volume of pounds sold, offset by a 6% increase in the weighted average sales price per pound. For the full year, net sales increased to a record $1.11 billion. Gross profit in the fourth quarter decreased by $1.2 million or 2.4% to $48.8 million, with a gross profit margin of 18.1% compared to 18.5% in the prior year's fourth quarter. Year-to-date, gross profit margin decreased from 20.1% to 18.4% of net sales. The consumer distribution channel sales volume decreased 11.5%, commercial ingredients distribution channel increased 8.7%, and contract manufacturing distribution channel increased 18.7%.

• Focus on accelerating volume growth by expanding private brand bar portfolio. - Rebuild nut and trail business through price pack architecture and innovation. - Expand manufacturing capabilities. - Confident in delivering strong operating results and creating long-term value through execution of long-range plan.

• External uncertainties including tariffs, inflation, unpredictable commodity costs, and broader macroeconomic challenge. These factors require staying agile and responsive.