John B Sanfilippo & Son (JBSS) investor relations material

Executive summary

• Net sales for Q3 2026 reached a record $281.8 million, up 8.0% year-over-year, driven by higher average selling prices despite flat sales volume.

• Net income for Q3 2026 was $16.8 million ($1.43 per diluted share), down from $20.2 million ($1.72 per share) in Q3 2025.

• Year-to-date net sales rose 6.8% to $895.2 million; net income increased to $53.5 million ($4.55 per share) from $45.4 million ($3.87 per share) year-over-year.

• Diversified multi-channel sales model and ongoing investment in bar manufacturing and innovation supported growth in commercial ingredients and contract manufacturing channels.

• Teams focused on new product development, wellness-oriented innovation, and digital transformation.

Financial highlights

• Gross profit for Q3 2026 decreased 3.8% to $53.8 million; gross margin fell to 19.1% from 21.4% year-over-year.

• Operating income for Q3 2026 was $23.8 million (8.4% of sales), down from $28.2 million (10.8%) in Q3 2025.

• Operating cash flow for the first thirty-nine weeks of 2026 was $94.8 million, a significant increase from cash used of $6.0 million in the prior year period.

• Operating expenses as a percentage of net sales remained at 10.6% year-over-year.

• Inventory value decreased 2% year-over-year, with a 10.5% increase in weighted average cost per pound of raw input stock.

Outlook and guidance

• Management expects to continue significant capital investments through fiscal 2027 to expand production and efficiency.

• Ongoing focus on volume growth initiatives, onboarding new strategic customers, and expanding bar category offerings.

• Plans to host an investor day in October to showcase transformation and growth opportunities.

• Monitoring global events and macroeconomic headwinds, including energy prices and supply chain volatility.

• Anticipates sufficient liquidity from operations and credit facilities to fund ongoing operations and capital expenditures for the next twelve months.