SANFILIPPO JOHN B & SON INC Q3 FY2026 earnings call

• Delivered strong quarter with record top line sales growth, volume consistent with last year and sequential quarter improvement in volume growth initiatives. • Diversified multi-channel sales model is a competitive advantage, pursuing new volume-driving opportunities. • Board discussed investments in bar manufacturing capabilities and plans to host investor day in October. • Focus on consumer insights and innovation, monitoring wellness and premium innovation, strengthening digital product data and sustainability claims. • Investment in people to optimize teams for a digital future with AI and automation.

Net sales for the third quarter of fiscal 2026 increased by 8% to $281.8 million compared to $260.9 million in the third quarter of fiscal 2025. The increase was due to an 8.3% increase in the weighted average sales price per pound while sales volume was essentially flat. Sales volume declined 4.5% in the consumer distribution channel. Sales volume increased 14.3% in the commercial ingredients channel mainly due to higher food service sales volume at new and existing customers. Sales volume in the contract manufacturing channel increased 16.5% due to increased net sales to a significant customer. Gross profit decreased by $2.1 million or 3.8% to $53.8 million. Gross profit margins increased to 19.1% on net sales. Year-to-date net sales for the first three quarters of fiscal 2026 increased 6.8% to $895.2 million. Gross profit increased 18.7% on net sales. Net income for the third quarter of fiscal 2026 was $16.8 million or $1.43 per diluted share, and for the first three quarters was $53.5 million or $4.55 per delivered share.

• Plan to host an investor day in October this year. • Actively pursuing new volume-driving opportunities in contract manufacturing channel. • Working to diversify customer base across channels, including looking at new segments within existing customers like pharmaceutical. • Focus on getting protein bar offerings to market within next four to six weeks at a major retailer.

• Uncertainty in how quickly U.S. Customs can process tariff refund claims with the new CAPE system. • Global events creating unfavorable conditions for elevated fuel prices and increased costs for related materials. • Volatile supply chain and cost disruptions due to these factors.

Q: How are you moving on a standpoint of adding capacity in the bars and about the large customer ramping this quarter and volume shift?

A: Jasper said installation of the line is 90% done, bulk work left is building kitchens and auxiliary support. As for capacity, nine months out of the year mainstream bars don't need additional capacity, actively working with protein bar line for distribution, and Frank said volume shift between retail and contract manufacturing doesn't matter as every customer has different jail classification.

Q: Looking out to fiscal 27, where do you stand as far as new customers go?

A: Goal is to diversify customer base, teams working hard with retailers across consumer channel, focusing on contract manufacturing and commercial ingredient channels, and looking at segments within existing customers like pharmaceutical