John B. Sanfilippo & Son, Inc. (JBSS) Q2 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals strong financial performance with a 32% increase in EPS and a special dividend, indicating financial strength and commitment to shareholder returns. Despite risks like higher commodity costs and shifting consumer behavior, the company's strategic focus on innovation, operational efficiency, and market expansion is promising. The Q&A session showed management's transparency and confidence in handling challenges. Given the company's market cap and the positive financial outlook, a positive stock price movement of 2% to 8% is likely in the next two weeks.
Key Financial Performance
Net Sales $314.8 million for Q2 FY2026, a 4.6% increase from $301.1 million in Q2 FY2025. The increase was due to a 15.8% decrease in the weighted average sales price per pound, partially offset by a 9.7% decline in sales volume of pounds sold to customers.
Gross Profit $59.2 million for Q2 FY2026, a 13.2% increase from $52.3 million in Q2 FY2025. This was driven by higher net sales, selling prices more closely aligned to commodity acquisition costs, reduced manufacturing spending, and operational efficiencies.
Gross Profit Margin 18.8% of net sales for Q2 FY2026, up from 17.4% in Q2 FY2025. The increase was due to higher net sales and operational efficiencies.
Operating Expenses $33.1 million for Q2 FY2026, essentially flat compared to Q2 FY2025 with a slight increase of $300,000. The increase was primarily driven by higher incentive compensation, offset by lower marketing, freight, third-party warehouse, and compensation costs.
Net Income $18 million for Q2 FY2026, a 32.4% increase from $13.6 million in Q2 FY2025. This was driven by higher gross profit and controlled operating expenses.
Diluted Earnings Per Share (EPS) $1.53 for Q2 FY2026, up approximately 32% from $1.16 in Q2 FY2025. The increase was attributed to higher net income.
Inventory Value $236.1 million at the end of Q2 FY2026, a 14.4% increase from $206.5 million in Q2 FY2025. The increase was due to higher commodity acquisition costs and greater on-hand quantities of work-in-process and finished goods inventory to support forecasted demand.
Weighted Average Cost per Pound of Raw Nut and Dried Fruit Increased 11.8% year-over-year due to higher acquisition costs for all major nut types except for in-shell walnuts, partially offset by lower acquisition costs of peanuts and lower on-hand quantities of almonds and cashews.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
New bar manufacturing capabilities: Investments in new bar manufacturing capabilities align with consumer shift to healthier protein-forward snacks. Approximately 85% of the new equipment is on site or in transit, with production scheduled to begin in July.
Bar innovation platform: R&D and insights teams have developed a robust bar innovation platform, receiving positive interest from customers.
Reduction in trade tariffs: Reduction in trade tariffs on imported nuts, primarily cashews, is expected to lower selling prices and support future demand.
Expansion in snack and energy bar business: Focus on accelerating the snack and energy bar business, particularly in the protein-forward bar segment, which is experiencing strong growth.
Operational efficiencies: Efficiency improvements across operations, supply chain, pricing, trade spending, and formula development are being implemented under the 'Optimize for Growth' initiatives.
Cost management: Disciplined cost management and strategic pricing actions contributed to a 32% increase in diluted earnings per share.
Capital expenditure initiatives: One of the largest capital expenditure initiatives in the company's history is underway to enhance operational efficiency and expand production capacity.
Focus on private brand business: Growth priorities include accelerating private brand business with key customers and high-growth snacking categories, supported by capacity expansion and innovation.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Shifting Consumer Behavior: Headwinds from shifting consumer behavior and emerging health and wellness trends are impacting overall sales volume.
Elevated Retail Selling Prices: Higher retail selling prices are weighing on overall sales volume, particularly in nuts, trail mix, and bar categories.
Volume Decline in Key Categories: Declines in sales volume for nuts, trail mix, and private label bars due to higher prices, soft demand, and reduced distribution at major retailers.
Lost Distribution: Lost distribution of branded products like Orchard Valley Harvest and Fisher at major customers is negatively impacting sales.
Commodity Acquisition Costs: Higher commodity acquisition costs for major tree nuts and peanuts are increasing input costs and impacting margins.
Supply Chain Complexity: Supply chain complexity and inflationary pressures are creating challenges in cost optimization and operational efficiency.
Softness in Bar Category: Softness in certain segments of the bar category, including fruit and grain and granola, is impacting growth in the snack and energy bar business.
Economic and Operating Environment: The current economic and operating environment poses risks of declining demand and challenges in maintaining growth.
Customer Downsizing: Customer downsizing and reduced distribution at major mass merchandisers are contributing to lower sales volumes.
Inventory Costs: Increased inventory costs due to higher commodity acquisition costs and greater on-hand quantities of work in process and finished goods.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue and Demand Outlook: The company expects future demand to be supported by the recent reduction in trade tariffs on imported nuts, primarily cashews, which should help lower selling prices over time.
Capital Expenditures and Operational Efficiency: The company is undertaking one of the largest capital expenditure initiatives in its history to enhance operational efficiency, expand production capacity, and capture emerging market opportunities. Production using new bar equipment is scheduled to begin in July 2026.
Growth in Snack and Energy Bar Business: The company is prioritizing growth in the protein-forward bar segment, which aligns with consumer trends towards healthier snacks. Approximately 85% of the new bar manufacturing equipment is on-site or in transit, and production is on schedule to begin in July 2026.
Innovation and Product Development: The company is expanding its innovation pipeline, particularly in the bar category, with a focus on protein-forward snacks. Sales and marketing teams are engaging with customers, and positive interest has been received for new offerings.
Margin and Productivity Focus: The company is implementing margin enhancement projects and driving efficiency improvements across operations, supply chain, pricing, trade spending, and formula development to support sustainable growth.
Volume Stabilization and Growth: Efforts are being made to stabilize and grow volumes in nut, trail mix, and bar categories through resource allocation, strengthening programs with existing partners, diversifying the customer base, and introducing innovative products and packaging.
Private Brand and Branded Business Expansion: The company plans to accelerate its private brand business and expand branded distribution through product and packaging innovation, focusing on high-growth snacking categories and nutrition bars.
Future Growth Priorities: The company is focused on accelerating private brand business, expanding branded distribution, and driving growth in high-growth snacking categories, supported by capacity expansion and a robust innovation pipeline.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Special Dividend: At the start of the third quarter, a special dividend of $1 per share was distributed, reflecting the company's strong financial position and disciplined capital allocation strategy.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Where do you stand on this equipment? Is it going to be calendar this year or fiscal this year? How do you know the quality will be there that you've already started engaging with customers?
A:Jasper Sanfilippo explained that equipment is being delivered now to their building and Huntley warehouse. Other equipment from Europe is either on water or being prepared for shipment. The manufacturers are familiar, and the equipment is similar to what they already use, ensuring quality and efficiency. Installation and operation are planned for July 2026. Jeffrey Sanfilippo added that engineers have visited manufacturers in Europe, tested the equipment, and are confident it will perform as expected.
Q:How fast are you able to pass through pricing that you're incurring on the higher cost of nuts?
A:Jeffrey Sanfilippo stated that most retailers have a 6-month price review cycle depending on commodity trends. After the review, price changes for their brands typically take 60 to 90 days to implement.
Q:Review of Unclear Management Responses
A:None of the questions were avoided or lacked clarity. All responses were detailed and addressed the questions directly.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Executive
acquisition nut
almond
base
capability
capital
channel decline
consumer behavior
contract manufacturing
date
decrease sale
equipment
granola volume
hand quantity
health wellness
increase incentive
industry
ingredient channel
investment
label bar
manufacturing channel
merchandiser
nut type
opportunity profitability
party warehouse
platform
portfolio
priority call
process
protein
sale increase
segment
selling price
softness
spending
theme
trade
volume contract
wellness trend
JBSS Transcript
John B. Sanfilippo & Son, Inc. (JBSS) Q2 2026 Earnings Call Transcript
Positive1-30
The earnings call reveals strong financial performance with a 32% increase in EPS and a special dividend, indicating financial strength and commitment to shareholder returns. Despite risks like higher commodity costs and shifting consumer behavior, the company's strategic focus on innovation, operational efficiency, and market expansion is promising. The Q&A session showed management's transparency and confidence in handling challenges. Given the company's market cap and the positive financial outlook, a positive stock price movement of 2% to 8% is likely in the next two weeks.
John B. Sanfilippo & Son, Inc. (JBSS) Q1 2026 Earnings Call Transcript
Positive10-30
The earnings call revealed strong financial performance with increased net sales, gross profit, and net income. Despite challenges like commodity inflation and lost distribution, the company managed to improve margins and reduce operating expenses. The special cash dividend also indicates confidence in financial health. The Q&A highlighted management's transparency and adaptability to consumer shifts. Market cap suggests moderate sensitivity to news, leading to a positive sentiment prediction (2% to 8%) over the next two weeks.
John B. Sanfilippo & Son, Inc. (JBSS) Q4 2025 Earnings Call Transcript
Unknown8-21
The earnings call presents a mixed picture. While there are positive elements such as record net sales, increased dividends, and EPS growth, there are also significant concerns. These include declining sales volume, increased costs, and macroeconomic uncertainties impacting margins. The Q&A section did not provide additional clarity, and the market cap suggests moderate sensitivity to these factors. Overall, the positives and negatives balance each other out, leading to a neutral sentiment prediction for the stock price movement over the next two weeks.
John B. Sanfilippo & Son, Inc. (JBSS) Q3 2025 Earnings Call Transcript
Unknown5-1
The earnings call reveals several concerns: a decrease in net sales and sales volume, increased inventory value, and rising costs, particularly in raw materials. Although gross profit and margins improved, the lack of a share repurchase program and management's vague responses in the Q&A, especially about the cashew business, add uncertainty. The challenging economic environment and inability to pass on costs to consumers further contribute to a negative outlook. Given the small-cap nature of the company, these factors are likely to lead to a stock price decrease of -2% to -8% over the next two weeks.
JBSS Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
