Sanfilippo John B & SON Inc.: Q4 FY2026 earnings call

What management said about Q4 FY2026, from the documents filed with the SEC on 19 August 2026: press release. The quarter’s numbers.

Key takeaways

Record net sales and EPS growth: Net sales reached record $1.18 billion, up 6.2%, and diluted EPS increased 4.6% to $5.26 per share in fiscal 2026, demonstrating earnings growth in challenging consumer and cost environment. Source
Recall-related costs and input prices: $2.7 million recall-related costs for dry milk powder from third-party manufacturer used in seasonings, combined with higher commodity acquisition costs for peanuts and tree nuts, significantly pressured Q4 gross profit. Source
Manufacturing inefficiencies from contract customer: Manufacturing inefficiencies associated with onboarding large contract manufacturing customer added in Q2 of prior year contributed to Q4 profitability challenges alongside higher snack bar ingredient costs. Source
Gross margin declined significantly in Q4: Gross margin declined to 15.7% from 18.1% prior year quarter, primarily due to $2.7 million recall costs, higher customer claims, ingredient costs, manufacturing inefficiencies, and higher freight. Source
Annual dividend increased for 9th consecutive year: Annual dividend increased 5.6% to $0.95 per share for 2026, continuing company's ninth consecutive year of dividend increases and reflecting confidence in balance sheet strength and cash generation capability. Source
CEO succession: Jeffrey to Jasper: Jeffrey T. Sanfilippo stepping down as Chief Executive Officer in October to become Executive Chairman after 20 years; brother Jasper to succeed as CEO, continuing family leadership. Source

“I am pleased to report a strong fiscal 2026, with net sales reaching a record $1.2 billion and diluted EPS increasing 4.6% for the full year. Achieving record net sales and earnings growth in a challenging consumer and cost environment is a testament to the strength of our business, the dedication of our team and the depth of our customer relationships.”
Jeffrey T. Sanfilippo, Chief Executive Officer

What changed from last quarter

New: Sales volume increased 1.4% in Q4 after five consecutive quarters of decline, marking positive inflection in company-wide volume trend. Source
New: Jeffrey T. Sanfilippo stepping down as Chief Executive Officer in October to become Executive Chairman; brother Jasper to succeed as CEO. Source
New: Annual dividend increased 5.6% to $0.95 per share and special dividend of $1.05 per share declared, 75% increase from prior year. Source

Full Year Results and Record Achievement

Record net sales and EPS growth: Net sales reached record $1.18 billion, up 6.2%, and diluted EPS increased 4.6% to $5.26 per share in fiscal 2026, demonstrating earnings growth in challenging consumer and cost environment. Source
Sales volume declined full year: Full year sales volume decreased 2.5% to 349.3 million pounds, primarily due to lower consumer channel sales, partially offset by growth in commercial ingredients and contract manufacturing channels. Source
Full year gross margin compressed: Gross profit margin declined to 18.0% from 18.4% prior year, mainly from lower inventory valuation adjustments and prior year pricing concession, partially offset by improved commodity cost pricing alignment. Source

Fourth Quarter Cost Pressures and Challenges

Recall-related costs and input prices: $2.7 million recall-related costs for dry milk powder from third-party manufacturer used in seasonings, combined with higher commodity acquisition costs for peanuts and tree nuts, significantly pressured Q4 gross profit. Source
Manufacturing inefficiencies from contract customer: Manufacturing inefficiencies associated with onboarding large contract manufacturing customer added in Q2 of prior year contributed to Q4 profitability challenges alongside higher snack bar ingredient costs. Source
Higher freight and customer claims: Q4 adversely affected by higher freight expenses, higher customer claims, and higher snack bar ingredient costs, combining to compress gross margin to 15.7% from 18.1% in prior year quarter. Source
Management actively responding to cost increases: Company actively responding to increased input and transportation costs and focused on improving operational efficiencies in fiscal 2027 as it moves forward and addresses manufacturing challenges. Source

“While our bottom-line results for the most recent fourth quarter did not match last year's results, we were encouraged to see a return to growth in our company-wide sales volume after five consecutive quarters of decline.”
Jeffrey T. Sanfilippo, Chief Executive Officer

Sales Performance by Distribution Channel

Consumer channel volume increased modestly: Consumer distribution channel sales volume increased 0.8%, driven by 2.4% increase in private brand sales volume from new private label distribution and expanded retail presence, offset by strategic bar sales reduction. Source
Commercial Ingredients channel declined: Commercial Ingredients channel sales volume decreased 5.4%, mainly from timing of elevated peanut crushing stock sales in prior quarter, while food service sales remained relatively flat. Source
Contract manufacturing channel showed strength: Contract Manufacturing channel sales volume increased 12.6%, primarily driven by increased snack nut sales to significant new customer added in Q2 of prior year, partially offset by granola sales decline. Source

Gross Profit Compression and Pricing

Gross margin declined significantly in Q4: Gross margin declined to 15.7% from 18.1% prior year quarter, primarily due to $2.7 million recall costs, higher customer claims, ingredient costs, manufacturing inefficiencies, and higher freight. Source
Pricing increased but offset by product mix: Weighted average selling price per pound increased 2.8% in Q4, reflecting pricing actions responding to higher commodity acquisition costs for peanuts and tree nuts, partially offset by product mix shift to lower-priced items. Source

“Fourth quarter profitability was impacted by several challenges, including higher-than-anticipated input and transportation costs, manufacturing inefficiencies associated with the continued onboarding of a large contract manufacturing customer and certain customer-related charges.”
Jeffrey T. Sanfilippo, Chief Executive Officer

Operating Expenses and Operational Efficiency

Q4 operating expenses increased: Total operating expenses increased $3.1 million in Q4 primarily due to higher incentive compensation, freight and marketing expenses, partially offset by insurance recovery from recall, reaching 11.3% of sales versus 10.6% prior year. Source
Full year operating expenses increased slightly: Full year operating expenses increased $3.2 million to $122.0 million, primarily from higher incentive compensation, partially offset by lower compensation costs, warehouse costs, insurance recovery, and reduced marketing. Source

Inventory and Working Capital Management

Q4 inventory value decreased: Total inventory value decreased $8.8 million or 3.4% at quarter-end, primarily due to lower finished goods for bars and lower walnut acquisition costs, partially offset by higher pecan and almond costs. Source
Raw nut input costs increased year-over-year: Weighted average cost per pound of raw nut and dried fruit input stock increased 12.1% year-over-year, driven primarily by higher pecan and almond acquisition costs, partially offset by lower walnut costs. Source

Capital Returns and Balance Sheet Strength

Annual dividend increased for 9th consecutive year: Annual dividend increased 5.6% to $0.95 per share for 2026, continuing company's ninth consecutive year of dividend increases and reflecting confidence in balance sheet strength and cash generation capability. Source
Special dividend declared at record level: Special dividend of $1.05 per share declared, representing 75% increase from prior year, with both dividends paid September 9, 2026, bringing 2026 calendar year total to $3.50 per share. Source

Leadership Transition and Future Strategy

CEO succession: Jeffrey to Jasper: Jeffrey T. Sanfilippo stepping down as Chief Executive Officer in October to become Executive Chairman after 20 years; brother Jasper to succeed as CEO, continuing family leadership. Source
Strategic investments in people and capabilities: Company made significant investments in people, capabilities, and infrastructure over recent years to support long-term sustainable growth with focus on continuous improvement, innovation, and operational excellence. Source
Management confident in Jasper's execution: Jeffrey stated confidence that Jasper's leadership will enable company to execute strategic plan, strengthen market position, capitalize on growth opportunities while maintaining entrepreneurial and family-oriented culture. Source

Coming up, per management

Conference call on August 20: Company will host investor conference call and webcast Thursday, August 20, 2026, at 10:00 a.m. Eastern time to discuss fourth quarter and full year results. Source
Investor conference presentations scheduled: Company will present at BWS Financial Growth and Value Summer Investor Series in New York City on August 25, 2026, and Midwest IDEAS conference in Chicago on August 27, 2026. Source
CEO transition occurring in October: Jeffrey T. Sanfilippo to step down as Chief Executive Officer in October to assume role of Executive Chairman; brother Jasper to succeed as CEO of company. Source

In management's words

“We are actively responding to these increased costs, and we remain focused on improving operational efficiencies as we move into fiscal 2027”
Jeffrey T. Sanfilippo, Chief Executive Officer

Risks management discussed

Operational: Manufacturing inefficiencies from onboarding large contract manufacturing customer contributed to Q4 profitability challenges and may continue affecting operations during transition period. Source
Operational: Product recall of externally sourced dry milk powder ingredient in seasoning within certain products resulted in $2.7 million in recall-related costs and temporary product withdrawals. Source
Financial: Higher-than-anticipated input costs for commodities, transportation, and freight expenses increased Q4 costs and pressured gross profit margin significantly. Source
Demand: Lost private label business at online retailer and decreased Fisher recipe nut sales due to Easter holiday timing impacted consumer channel volume. Source

Earlier plans management reported on

Met: Management stated encouragement at seeing return to growth in company-wide sales volume after five consecutive quarters of decline, with Q4 showing 1.4% volume increase. Source
On track: Management stated focus on improving operational efficiencies as company moves into fiscal 2027 in response to Q4 manufacturing and cost challenges. Source

Summarised with AI from the documents the company filed with the SEC. Every point carries a quote that is checked word for word against the filing; a point whose quote is not found is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Exhibit 99.1

John B. Sanfilippo & Son, Inc. Reports Fiscal 2026 Fourth Quarter and Full Year Results

Fourth Quarter Net Sales Increased 4.2%; Sales Volume Increased 1.4%

Elgin, IL, August 19, 2026 -- John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) (the “Company”) today announced financial results for its fiscal 2026 fourth quarter and full year ended June 25, 2026.

Fourth Quarter Summary

• Net sales increased $11.4 million, or 4.2%, to $280.4 million

• Sales volume increased 1.2 million pounds, or 1.4%, to 87.4 million pounds

• Gross profit decreased 9.5% to $44.1 million

• Diluted EPS decreased 38.3% to $0.71 per share

Full Year Summary

• Net sales increased $68.4 million, or 6.2%, to $1.18 billion

• Sales volume decreased 9.0 million pounds, or 2.5%, to 349.3 million pounds

• Gross profit increased 3.8% to $211.2 million

• Diluted EPS increased 4.6% to $5.26 per share

CEO Commentary

“I am pleased to report a strong fiscal 2026, with net sales reaching a record $1.2 billion and diluted EPS increasing 4.6% for the full year. Achieving record net sales and earnings growth in a challenging consumer and cost environment is a testament to the strength of our business, the dedication of our team and the depth of our customer relationships. While our bottom-line results for the most recent fourth quarter did not match last year’s results, we were encouraged to see a return to growth in our company-wide sales volume after five consecutive quarters of decline. We believe this is a positive signal for our entire portfolio. Fourth quarter profitability was impacted by several challenges, including higher-than-anticipated input and transportation costs, manufacturing inefficiencies associated with the continued onboarding of a large contract manufacturing customer and certain customer-related charges. We are actively responding to these increased costs, and we remain focused on improving operational efficiencies as we move into fiscal 2027, stated Jeffrey T. Sanfilippo, Chief Executive Officer.

“We also remain committed to returning capital to our shareholders. During the 2026 calendar year, we increased our annual dividend declared by 5.6% to $0.95 per share and declared a special dividend of $1.05 per share, representing a 75% increase from the prior year. Both dividends will be paid on September 9, 2026, bringing total dividends paid during 2026 calendar year to $3.50 per share. This year marks our fifteenth consecutive year of returning capital to shareholders through dividends and the ninth consecutive year of increasing our annual dividend, reflecting the strength of our balance sheet, our consistent cash generation, and our ongoing commitment to creating long-term shareholder value,” Mr. Sanfilippo concluded.

Fourth Quarter Results

Net Sales

Net sales for the fourth quarter of fiscal 2026 increased $11.4 million, or 4.2%, to $280.4 million. This increase was driven by a 2.8% increase in the weighted average selling price per pound and a 1.4% increase in sales volume (pounds sold to customers). The increase in the weighted average selling price primarily reflected pricing actions taken in response to higher commodity acquisition costs for peanuts and all major tree nuts except walnuts, which was partially offset by a shift in product mix toward lower priced items in the current quarter.

Sales Volume

Consumer Distribution Channel +0.8%

The sales volume increase was primarily driven by a 2.4% increase in private brand sales, reflecting higher volume in private label nuts and trail mix, partially offset by decreased bars volume due to our strategic decision to reduce sales to a grocery store retailer. The increase in private label nuts and trail mix sales volume was positively impacted by initial shipments to a new grocery retailer and expanded distribution at two existing grocery retailers, which was partially offset by lost private label business at an online retailer. In addition, our branded sales were negatively impacted by decreased Fisher recipe nut sales due to the timing of the Easter holiday and related promotional activity, as well as lower sales of Southern Style Nuts Hunter Mix, which was temporarily withdrawn from the market following a product recall of an externally sourced ingredient contained in the snack mix.

Commercial Ingredients Distribution Channel -5.4%

This sales volume decrease was mainly driven by timing of peanut crushing stock sales, as sales volumes were elevated in the preceding quarter. Food service sales volume remained relatively flat in the quarterly comparison.

Contract Manufacturing Distribution Channel +12.6%

This sales volume increase was mainly driven by increased snack nut sales to a significant new customer that was added in the second quarter of the prior year. This increase was partially offset by decreased granola sales volume.

Gross Profit

Gross profit decreased by $4.6 million to $44.1 million and gross margin declined to 15.7% from 18.1%. The decrease was primarily attributable to $2.7 million of recall-related costs associated with dry milk powder supplied by a third-party manufacturer used in the seasoning within certain of our products, as discussed above. Gross profit was also adversely affected by higher customer claims, higher snack bar ingredient costs, manufacturing inefficiencies, and higher freight expenses. Gross margin declined due to the factors mentioned above partially offset by a higher net sales base.

Operating Expenses, net

Total operating expenses increased $3.1 million in the quarterly comparison primarily due to higher incentive compensation, freight and marketing and insights expenses. These increases were partially offset by the estimated insurance recovery associated with the dry milk powder recall. As a percentage of net sales, total operating expenses increased to 11.3% from 10.6% in the prior comparable quarter, reflecting the factors noted above, partially offset by a higher net sales base.

Inventory

The value of total inventories on hand at the end of the current fourth quarter decreased $8.8 million, or 3.4%. The decrease was primarily attributable to lower finished goods inventories for bars, lower walnut acquisition costs, and lower on hand quantities of pecans and walnuts, which were partially offset by higher pecan and almond acquisition costs. The weighted average cost per pound of raw nut and dried fruit input stock on hand increased 12.1% year over year, driven primarily by higher pecan and almond acquisition costs, partially offset by lower walnut acquisition costs.

Full Year Results

• Net sales increased 6.2% to $1.2 billion. The increase in net sales was primarily attributable to an 8.9% increase in weighted average selling price per pound, which was partially offset by a 2.5% decrease in sales volume.

• Sales volume decreased 2.5%, primarily due to lower sales volume in the consumer channel, which was partially offset by sales volume increases in the commercial ingredients and contract manufacturing channels.

• Gross profit margin decreased from 18.4% to 18.0% of net sales. This decrease was mainly attributable to factors noted in the quarterly comparison above and lower inventory valuation adjustments which were partially offset by aligning our pricing more closely with commodity acquisition costs and the absence of a one-time pricing concession recognized in the prior year.

• Operating expenses increased $3.2 million to $122.0 million. The increase in total operating expense was primarily due to higher incentive compensation expense. This increase was partially offset by the estimated insurance recovery related to the dry milk powder recall, lower compensation expense, a net gain of the disposal of non-core equipment compared to a net loss in the prior year, reduced marketing and insights spending and lower third party warehouse cost.

• Diluted EPS increased 4.6%, or $0.23 per diluted share, to $5.26.

In closing, Mr. Sanfilippo commented, “As I announced last month, I will be stepping down as Chief Executive Officer in October to assume the role of Executive Chairman, and my brother Jasper will succeed me as CEO. Over the last several years we have made significant investments in our people, capabilities, and infrastructure that we believe will support long-term, sustainable growth. These investments, combined with a disciplined growth strategy focused on continuous improvement, innovation, customer partnership, and operational excellence, should position the company for continued success. Under Jasper's leadership, I am confident JBSS will continue to execute its strategic plan, strengthen its market position, and capitalize on future growth opportunities.

As I reflect on the past 20 years, I want to sincerely thank our current and former employees for their hard work, dedication, and commitment. Together, we have transformed JBSS into a stronger, more diversified, and more profitable organization while preserving the entrepreneurial and family-oriented culture that has always defined our company. Our ability to remain nimble, adapt to changing market conditions, and work collaboratively to serve our customers has been a key driver of our success. It has been a privilege to lead this remarkable organization as CEO, and I am deeply grateful to our employees, customers, suppliers, and shareholders for their trust, support, and partnership throughout this journey ."

Conference Call

The Company will host an investor conference call and webcast on Thursday, August 20, 2026, at 10:00 a.m. Eastern (9:00 a.m. Central) to discuss these results. To register for the call, please click on the Participant Registration by register using this link: https://register-conf.media-server.com/register/BI44107bdd00e5457a8a0b6255bbaf1762 . After registering, an email will be sent, including dial-in details and a unique access code required to join the live call. Please ensure you have registered at least 15 minutes prior to the conference call time. This call is also being webcast by Notified and can be accessed at the Company’s website at www.jbssinc.com .

About John B. Sanfilippo & Son, Inc.

Based in Elgin, Illinois, John B. Sanfilippo & Son, Inc. is a processor, packager, marketer and distributor of nut and dried fruit products and snack bars, that are sold under the Company’s Fisher ®, Orchard Valley Harvest ®, Squirrel Brand ® and Southern Style Nuts ® brand names and under a variety of private brands.

Upcoming Events

The Company will be presenting at the BWS Financial Growth and Value Summer Investor Series conference in New York City, New York on August 25, 2026 and the Midwest IDEAS conference in Chicago, Illinois on August 27, 2026. Qualified investors that would like to schedule a meeting with management should contact Three Part Advisors at the phone number below.

Contacts:

Company:	Investor Relations:
Frank S. Pellegrino	John Beisler or Steven Hooser
Chief Financial Officer	Three Part Advisors, LLC
847-214-4138	817-310-8776

JOHN B. SANFILIPPO & SON, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share amounts)

For the Quarter Ended

For the Year Ended

June 25, 2026

June 26, 2025

June 25, 2026

June 26, 2025

Net sales	$280,434	$269,076	$1,175,673	$1,107,246
Cost of sales	236,287	220,293	964,492	903,775
Gross profit	44,147	48,783	211,181	203,471
Operating expenses:
Selling expenses	20,656	17,845	78,941	78,934
Administrative expenses	11,070	10,800	43,042	39,826
Total operating expenses	31,726	28,645	121,983	118,760
Income from operations	12,421	20,138	89,198	84,711
Other expense:
Interest expense	419	1,209	2,429	3,552
Rental and miscellaneous expense, net	512	453	2,238	1,849
Pension expense (excluding service costs)	389	361	1,556	1,445
Total other expense, net	1,320	2,023	6,223	6,846
Income before income taxes	11,101	18,115	82,975	77,865
Income tax expense	2,698	4,588	21,041	18,931
Net income	$8,403	$13,527	$61,934	$58,934
Basic earnings per common share	$0.72	$1.16	$5.29	$5.06
Diluted earnings per common share	$0.71	$1.15	$5.26	$5.03
Weighted average shares outstanding
- Basic	11,716,965	11,670,890	11,698,823	11,655,506
- Diluted	11,824,621	11,734,572	11,777,400	11,724,433

JOHN B. SANFILIPPO & SON, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

June 25, 2026

June 26, 2025

ASSETS
CURRENT ASSETS:
Cash	$1,147	$585
Accounts receivable, net	84,310	76,656
Inventories	245,826	254,600
Prepaid expenses and other current assets	18,028	14,583

349,311

346,424

PROPERTIES, NET:	255,965	178,219
OTHER LONG-TERM ASSETS:
Intangibles, net	15,137	16,178
Deferred income taxes	-	5,782
Operating lease right-of-use assets	24,584	27,824
Other assets	13,584	23,176

53,305

72,960

TOTAL ASSETS	$658,581	$597,603
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving credit facility borrowings	$33,615	$57,584
Current maturities of long-term debt, net	6,052	941
Accounts payable	72,438	60,479
Bank overdraft	237	294
Accrued expenses	55,591	36,748

167,933

156,046

LONG-TERM LIABILITIES:
Long-term debt, less current maturities	43,567	14,564
Retirement plan	29,193	27,921
Long-term operating lease liabilities	20,648	24,224
Other	17,292	14,151

110,700

80,860

STOCKHOLDERS' EQUITY:
Class A Common Stock	26	26
Common Stock	92	92
Capital in excess of par value	143,522	139,724
Retained earnings	236,670	221,495
Accumulated other comprehensive income (loss)	842	564
Treasury stock	(1,204)	(1,204)
TOTAL STOCKHOLDERS’ EQUITY	379,948	360,697
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$658,581	$597,603