John B. Sanfilippo & Son, Inc. Q2 FY2026 earnings call

• Delivered record top line growth and 32% increase in diluted earnings per share driven by cost management, operational efficiencies, and pricing actions.
• Navigating headwinds from shifting consumer behavior, health trends, and elevated retail prices but have products aligned with health trends and expanding pipeline with innovations.
• Distributed a special dividend of $1 per share, concurrent with large capital expenditure initiative to enhance efficiency, expand capacity, and capture market opportunities.
• Accelerating snack and energy bar business, with 85% of new bar equipment on site/in transit, set to begin production in July 2026.
• Focus on margin and productivity, driving efficiency improvements across operations, supply chain, etc., with OFG initiatives.
• Working on volume stabilization, allocating resources to strengthen partnerships, diversify customer base, and expand product portfolio.

Net sales for the second quarter of fiscal 2026 increased by 4.6% to $314.8 million compared to $301.1 million in the same period of fiscal 2025. Gross profit increased by $6.9 million or 13.2% to $59.2 million. Year-to-date net sales for the first two quarters of fiscal 2026 increased 6.3% to $613.5 million, with gross profit margin rising to 18.5% of net sales. The nuts and trail mix segment was impacted by higher retail prices and soft demand, while the bar segment saw changes due to industry recalls and distribution issues. The commercial ingredients and contract manufacturing channels also had varying performance.

• Expect bar production to begin in July 2026 using new equipment.
• Focus on accelerating private brand business with key customers and high-growth snacking categories, including private brand bars.
• Aim to expand branded distribution for Orchard Valley Harvest and Fisher via product and packaging innovation.

• Shifting consumer behavior and emerging health trends impacting sales volume.
• Elevated retail selling prices weighing on overall sales volume.
• Supply chain complexities and inflationary pressure on input costs.
• Risk of declining demand and challenges from economic and operating environments.

Q: Where do you stand on the equipment for the snack and energy bar business? Is it calendar or fiscal year, and how do you know the quality will be there as you've engaged with customers?

A: Jasper Sanfilippo: Equipment is being delivered now, with 85% on site/in transit. Familiar with manufacturers, equipment is similar in size/layout to existing, confident in quality. Installation and running set for July 2026. Jeffrey Sanfilippo: Engineers visited Europe, viewed production, tested equipment, confident it will perform as expected.

Q: How fast are you able to pass through pricing incurred on higher nut costs?

A: Jeffrey Sanfilippo: Typically, 6-month price reviews with retailers. Once reviews hit, 60-90-day timeline to initiate price changes on brands.