SANFILIPPO JOHN B & SON INC
For the period ended Dec 26, 2024. Filed Jan 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 26, 2024 · Filed Jan 29, 2025
JBSS$54.96+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-26; filed 2024-10-30.
0000950170-24-119114
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-26; filed 2025-01-29.
0000950170-25-010565
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 83 previous paragraphs and 98 current paragraphs.
40 unchanged; 37 reworded; 19 added; 6 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
References herein to the first three quarters or first twenty-six weeks of fiscal 2025 and fiscal 2024 are to the twenty-six weeks ended December 26, 2024 and December 28, 2023, respectively.
Current report
Our net sales of $301.1 million for the second quarter of fiscal 2025 increased $9.8 million, or 3.4%, from our net sales of $291.2 million for the second quarter of fiscal 2024. Net sales for the first twenty-six weeks of fiscal 2025 increased by $51.9 million, or 9.9%, to $577.3 million compared to the first twenty-six weeks of fiscal 2024.
Current report
In the second quarter of fiscal 2025, our net sales increased 3.4% to $301.1 million compared to net sales of $291.2 million for the second quarter of fiscal 2024. Sales volume, which is defined as pounds sold to customers, increased 7.1%. The weighted average sales price per pound decreased 3.4% primarily due to higher sales volume of lower priced snack bars, granola and private brand recipe nuts (pecans and walnuts). Additionally, strategic pricing decisions and competitive pricing pressures contributed to the overall decrease in weighted average selling price.
Current report
For the first twenty-six weeks of fiscal 2025 our net sales were $577.3 million, an increase of $51.9 million, or 9.9%, compared to the same period of fiscal 2024 primarily due to the Lakeville Acquisition. Excluding the fiscal 2025 first quarter's impact of the Lakeville Acquisition, net sales increased 2.2% to $536.8 million, which was primarily attributable to a 4.1% increase in sales volume which was offset by a 1.9% decrease in weighted average selling price per pound.
Current report
Net sales in the consumer distribution channel increased $10.0 million, or 4.1%, and sales volume increased 2.9% in the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024. The sales volume increase was driven by a 27.6% increase in bars volume due to a mass merchandising retailer returning to normalized inventory levels. In addition, the sales volume increase was due to higher sales volume of pecans, walnuts and snack and trail mix, mainly due to new distribution, which was partially offset by a sales volume decrease due to soft consumer demand, as well as downsized pack sizes and the discontinuation of peanut butter, all at the same mass merchandising retailer. Furthermore, this sales volume increase was also partially offset by soft consumer demand and decreased seasonal nut and trail mix volume at another mass merchandising retailer. Sales volume of Fisher recipe nuts increased 3.8% due to increased merchandising activity at several customers. Sales volume of Southern Style Nuts increased 11.8% due to the return normalized inventory levels and increased sales velocity at a club store customer.
Current report
Net sales in the commercial ingredients distribution channel decreased $1.1 million, or 4.1%, and sales volume increased 1.4% in the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024. The sales volume increase was primarily driven by higher sales of peanut crushing stock to peanut oil processors and higher sales from new distribution to a foodservice customer, partially offset by lost business to another customer.
Current report
In the first twenty-six weeks of fiscal 2025, net sales in the contract manufacturing distribution channel decreased $0.8 million, or 1.7%, and sales volume increased 34.4% compared to the same period of fiscal 2024. The sales volume increase was due to increased granola volume. Excluding the fiscal 2025 first quarter's impact of the Lakeville Acquisition, net sales in the contract manufacturing channel decreased $3.1 million, or 7.3%, and sales volume increased 17.8% for the reason cited in the quarterly comparison.
Current report
Gross profit was $98.8 million for the first twenty-six weeks of fiscal 2025 compared to $115.0 million for the first twenty-six weeks of fiscal 2024 for the same reason cited in the quarterly comparison. Our gross profit margin, as a percentage of net sales, decreased to 17.1% for the first twenty-six weeks of fiscal 2025 compared to 21.9% for the first twenty-six weeks of fiscal 2024.
Current report
Total operating expenses for the second quarter of fiscal 2025 increased by $2.5 million, or 8.4%, to $32.9 million. Operating expenses increased to 10.9% of net sales for the second quarter of fiscal 2025 compared to 10.4% of net sales for the second quarter of fiscal 2024. The increase in total operating expenses is net of the $2.2 million net gain on bargain purchase that occurred in the second quarter of fiscal 2024 due to the Lakeville Acquisition.
Current report
Selling expenses for the second quarter of fiscal 2025 were $22.6 million, an increase of $1.6 million, or 7.7%, from the second quarter of fiscal 2024. The increase was driven by a $1.0 million increase in rent expense related to our new Huntley facility lease, a $0.9 million increase in freight expense and a $0.6 million increase in compensation-related expenses. These increases were partially offset by a $0.6 million decrease in incentive compensation expense.
Current report
Administrative expenses for the second quarter of fiscal 2025 decreased $1.3 million, or 11.3%, to $10.3 million compared to $11.6 million for the second quarter of fiscal 2024. The decrease was due to a $1.0 million decrease in incentive compensation expense and a $0.4 million decrease in consulting expense, primarily related to the prior year Lakeville Acquisition.
Current report
Administrative expenses for the first twenty-six weeks of fiscal 2025 decreased $2.1 million, or 9.3%, to $20.0 million compared the first twenty-six weeks of fiscal 2024. The decrease was primarily due to a $2.5 million decrease in incentive compensation expense and a $0.7 million decrease in legal expenses, primarily related to the Lakeville Acquisition. These were partially offset by a $0.4 million increase in equity compensation expense due to more retirement-eligible award recipients and a $0.5 million increase in loss on asset disposals.
Current report
Due to the factors discussed above, income from operations was $36.4 million, or 6.3% of net sales, for the first twenty-six weeks of fiscal 2025 compared to $52.2 million, or 9.9% of net sales, for the first twenty-six weeks of fiscal 2024.
Current report
Interest expense was $0.8 million for the second quarter of fiscal 2025 compared to $1.1 million for the second quarter of fiscal 2024.
Current report
Interest expense was $1.3 million for both the first twenty-six weeks of fiscal 2025 and fiscal 2024.
Current report
Net rental and miscellaneous expense was $0.8 million for the first twenty-six weeks of fiscal 2025 and $0.6 million for the first twenty-six weeks of fiscal 2024.
Current report
Income tax expense was $4.3 million, or 24.0% of income before income taxes (“effective tax rate”), for the second quarter of fiscal 2025 compared to $6.8 million, or 26.1% of income before income taxes, for the second quarter of fiscal 2024. The decrease in the effective tax rate is primarily due to a larger than anticipated research and development credit for the current fiscal year. Additionally, there is a reduction in the disallowed deduction related to officer compensation. These factors, along with the impact of lower pretax income, contributed to the decrease in effective tax rate.
Current report
Net income was $25.3 million, or $2.17 per common share basic and $2.16 per common share diluted, for the first twenty-six weeks of fiscal 2025, compared to $36.8 million, or $3.17 per common share basic and $3.15 per common share diluted, for the first twenty-six weeks of fiscal 2024.
Current report
Total inventories were $205.8 million at December 26, 2024, an increase of $9.3 million, or 4.7%, from the inventory balance at June 27, 2024, and an increase of $8.5 million, or 4.3%, from the inventory balance at December 28, 2023. The increase in inventories at December 26, 2024 compared to December 28, 2023 was primarily due to higher commodity acquisition cost for almost all major tree nuts and chocolate as well as higher on hand quantities of almonds and cashews. These increases were partially offset by decreased snack bar related inventory.
Removed paragraphs (6)
Previous report
Despite the widespread flooding and damage to the southeast region of the U.S. as a result of hurricanes Helene and Milton, we do not anticipate any material impact on the supply or acquisition prices of raw materials we procure from that area. Peanut crop loss and damage in the eastern Georgia region is expected to be minimal. The overall crop is estimated to be slightly larger than the prior year. The primary impact from the hurricane is the logistical delay of growers reaching their fields to continue the harvest, as well as some infrastructure damage to buying points. We expect there to be an adequate supply and minimal impact to cost of peanuts as a result of the hurricanes. Regarding pecans, initial estimates indicate a minimal loss of the Georgia crop and therefore we expect there to be an adequate supply and minimal impact to cost.
Previous report
Our net sales of $276.2 million for the first quarter of fiscal 2025 increased $42.1 million, or 18.0%, from our net sales of $234.1 million for the first quarter of fiscal 2024.
Previous report
In the first quarter of fiscal 2025, our net sales increased 18.0% to $276.2 million compared to net sales of $234.1 million for the first quarter of fiscal 2024, primarily due to the Lakeville Acquisition, which occurred in our second quarter of fiscal 2024 and increased quarterly net sales by approximately $40.5 million. Sales volume, which is defined as pounds sold to customers, increased 24.5%, also due to the Lakeville Acquisition. The Lakeville Acquisition increased our quarterly sales volume by 17.6 million pounds, or 24.1%, over the first quarter of fiscal 2024. Sales volume for the first quarter, excluding the impact of the Lakeville Acquisition, increased 0.5% and the weighted average sales price per pound increased 0.2%.
Previous report
Administrative expenses for the first quarter of fiscal 2025 decreased $0.8 million, or 7.2%, to $9.7 million compared to $10.5 million for the first quarter of fiscal 2024. The decrease was primarily due to a $1.4 million decrease in incentive compensation expense, partially offset by a $0.6 million increase in personnel and other expenses.
Previous report
Interest expense was $0.5 million for the first quarter of fiscal 2025 compared to $0.2 million for the first quarter of fiscal 2024. The increase in interest expense was due to higher average debt levels.
Previous report
Total inventories were $194.6 million at September 26, 2024, a decrease of $2.0 million, or 1.0%, from the inventory balance at June 27, 2024, and an increase of $19.8 million, or 11.3%, from the inventory balance at September 28, 2023. The increase in inventories at September 26, 2024 compared to September 28, 2023 was primarily due to the $21.1 million of additional inventory associated with the Lakeville Acquisition. Excluding the Lakeville Acquisition, total inventories on hand decreased $1.4 million, or 0.8%, year over year.
Reworded paragraphs (37)
Previous wording
References herein to the first quarter of fiscal 2025 and fiscal 2024 are to the quarters ended September 26, 2024 and September 28, 2023, respectively.
Current wording
References herein to the second quarter of fiscal 2025 and fiscal 2024 are to the quarters ended December 26, 2024 and December 28, 2023, respectively.
Previous wording
Our Long-Range Plan defines our future growth priorities and focuses on growing our private brand business across key customers, as well as transforming Fisher, Orchard Valley Harvestand Squirrel Brand into leading brands while increasing distribution and diversifying our portfolio into high growth snacking segments. We will execute on our Long-Range Plan by providing our private brand customers value-added solutions based on our extensive industry and consumer expertise with innovative products such as our newly developed product line of private brand nutrition bars and expanding our overall snack bar capabilities. We will grow our branded business by reaching new consumers via product expansion and packaging innovation, expanding distribution across current and alternative channels, diversifying our product offerings and focusing on new ways for consumers to buy our products, including sales via e-commerce platforms. Our Long-Range Plan also contemplates increasing our sales through product innovation and targeted, opportunistic acquisitions, such as the fiscal 2024 acquisition of certain snack bar assets including inventory, product formulas, a manufacturing facility and related equipment located in Lakeville, Minnesota, (the “Lakeville Acquisition”). The Lakeville Acquisition expands our ability to produce private brand snack bars, increased our overall production capabilities and allows us to provide our private brand customers with a complete snack bar portfolio. In addition, we also recently acquired additional snack bar production assets that will expand our manufacturing capacity and support further growth in our bar program.
Current wording
Our Long-Range Plan defines our future growth priorities and focuses on growing our private brand business across key customers, as well as transforming Fisher, Orchard Valley Harvestand Squirrel Brand into leading brands while increasing distribution and diversifying our portfolio into high growth snacking segments. We will execute on our Long-Range Plan by providing our private brand customers value-added solutions and innovative products based on our extensive industry and consumer expertise, such as our newly developed product line of private brand nutrition bars. We will focus on growing our branded business by reaching new consumers via product expansion and packaging innovation, expanding distribution across current and alternative channels, diversifying our product offerings and focusing on new ways for consumers to buy our products, including sales via e-commerce platforms. Our Long-Range Plan also contemplates increasing our sales through product innovation and targeted, opportunistic acquisitions, such as the acquisition of certain snack bar assets including inventory, product formulas, a manufacturing facility and related equipment located in Lakeville, Minnesota, (the “Lakeville Acquisition”) which we completed the first day of the second quarter of fiscal 2024. The Lakeville Acquisition expanded our ability to produce private brand snack bars, increased our overall production capabilities and allows us to provide our private brand customers with a complete snack bar portfolio. In addition, we also acquired additional snack bar production assets in the first quarter of fiscal 2025 that will expand our manufacturing capacity and support further growth in our bar business. Beginning in the current fiscal quarter and continuing into the next fiscal year, we plan to allocate significant additional capital to purchase new equipment (and incur related expenses) in order to further expand our production capabilities, increase our efficiency and enhance our product offerings for our customers.
Previous wording
We face a number of challenges in the future, which include the impacts of higher prices in food, in part due to underlying commodity acquisition costs, uncertainty over interest rates that may negatively impact economic growth, consumers reducing their snack purchases, including branded nut products or products with lower gross profit margin, potential for economic downturn in the markets in which we operate and continued supply chain challenges. To stay compliant with recent changes in employment laws across states where we operate and remain competitive in attracting qualified talent, we expect our labor costs to continue to increase.
Current wording
We face a number of challenges in the future, which include the impacts of higher prices in food, in part due to underlying commodity acquisition costs, uncertainty over interest rates that may negatively impact economic growth, consumers reducing their snack purchases, including branded nut products or products with lower gross profit margin, potential for economic downturn in the markets in which we operate and supply chain challenges. To stay compliant with recent changes in employment laws across states where we operate and remain competitive in attracting qualified talent, we expect our labor costs to continue to increase in the 2025 fiscal year and beyond.
Previous wording
We face changing industry trends as consumers' purchasing preferences evolve. We have continued to see higher selling prices at retail, with price increases starting to moderate for some products, including snack nuts and trail mix, and decrease for other products. While moderated, these higher prices across our categories and the broader food market, coupled with an actual or potential economic downturn and tightening of consumer finances due to reduced government support through programs such as SNAP or a variety of other macroeconomic reasons, are causing consumers to purchase fewer snack products. We have seen this through the sales volume decline in the recipe, snack nut and snack bar categories since fiscal 2023, with indicators of this trend reversing in the start of fiscal 2025. Consumers continue to shift their preferences to private brands or lower priced nuts or snack bars or purchase snack products outside the snack nut, trail mix and snack bar categories. We are also seeing signs of consumers shifting to more value-focused retailers, such as mass merchandising retailers and club stores, not all of which we distribute or sell to. We have responded by focusing on our strengths, including our knowledge of the snack and trail nut categories, product innovation and judicious use of trade spending and pricing actions.
Current wording
We face changing industry trends as consumers' purchasing preferences evolve. We have continued to see higher selling prices at retail, with price increases starting to moderate for some products, including snack nuts and trail mix, and decrease for other products. While moderated, these higher prices across our categories and the broader food market, coupled with a potential economic downturn and tightening of consumer finances due to reduced government support through programs such as SNAP or a variety of other macroeconomic reasons, are causing consumers to purchase fewer snack products. We have seen sales volume stabilize for snack nuts, trail mix and snack bars while sales volume for recipe nuts has continued to decline given higher prices. Consumers continue to shift their preferences to private brands or lower priced nuts or snack bars or purchase snack products outside the snack nut, trail mix and snack bar categories. We are also seeing signs of consumers shifting to more value-focused retailers, such as mass merchandising retailers and club stores, not all of which we distribute or sell to. Additionally, the increased use and/or prevalence of certain weight loss drugs, which may suppress a person’s appetite and/or impact a person's preferences, may impact the demand or consumption patterns for certain of our products. We have responded by focusing on our strengths, including our knowledge of the snack and trail nut categories, product innovation and judicious use of trade spending and pricing actions.
Previous wording
Global supply chain pressures have eased compared to fiscal 2024, but pockets of challenges, delays and extended lead-times still exist. While we do not have direct exposure to suppliers in Russia, Ukraine or Israel, the conflicts in these regions could continue to result in volatile commodity markets, supply chain disruptions and increased costs. Overall packaging and ingredient inflation appears to be leveling off. The East Coast/Gulf port strike was suspended after three days, but there is risk of recurrence in January 2025, if the parties are unable to reach agreement on the remaining contract terms. Any such strikes may negatively affect our ability to obtain certain raw materials or ship our products.
Current wording
Global supply chain pressures have eased compared to fiscal 2024, but pockets of challenges, delays and extended lead-times still exist. While we do not have direct exposure to suppliers in Russia, Ukraine or Israel, the conflicts and prospects for conflict in these regions could continue to result in volatile commodity markets, supply chain disruptions and increased costs. Overall packaging and ingredient inflation appears to be moderating or leveling off in the 2025 fiscal year. With the change in the presidential administration, there is a risk of new tariffs being levied on products we purchase from foreign countries such as China, Canada and Mexico. These tariffs could lead to an increase in the cost of certain raw materials we use in our business and our financial performance may be adversely impacted if we cannot pass on the cost increases in the form of price increases to our customers.
Previous wording
Freight rates have remained decreased compared to the prior fiscal year, and fuel costs stabilized in fiscal 2024. However, trucking capacity continues to decline due to (among other things) recent bankruptcies of trucking companies, potentially leading to further instability in the transportation industry in fiscal 2025. We are closely monitoring the situation with the East Coast port workers, which could further disrupt the freight industry. While indicators suggest transportation prices are stabilizing, the overall transportation environment remains unpredictable.
Current wording
Trucking capacity continues to decline, potentially leading to further instability in the transportation industry in the 2025 fiscal year. While indicators suggest transportation prices are stabilizing, the overall transportation environment remains unpredictable.
Previous wording
We have remained agile by proactively identifying risks, modifying inventory plans and diversifying our supplier base to mitigate risk of customer order shortages and maintain our supply chain. We continue to proactively manage our business in response to the evolving global economic environment and related uncertainty and intend to take steps to further mitigate impacts to our supply chain as they develop. If these supply chain pressures continue or worsen, or we cannot obtain the transportation and labor services needed to obtain raw materials or fulfill customer orders, such shortages and supply chain issues could have an unfavorable impact on net sales and our operations in fiscal 2025. Furthermore, record cocoa prices have been fueled by speculation of a short crop in calendar 2024. Cocoa markets have retreated from recent all-time highs, but remain sharply elevated versus levels a year ago and this has continued into fiscal 2025. Cocoa production was down significantly in Ghana and Ivory Coast due to a combination of inclement weather and crop disease. Despite higher cocoa prices, consumption remained strong, leading to predictions of a large production deficit. Additionally, as costs increase due to these circumstances or due to overall inflationary pressures, there is a further risk of our not being able to pass (in part or in full) such potential cost increases on to our customers or in a timely manner. If we cannot align costs with prices for our products, our financial performance could be adversely impacted.
Current wording
We have remained agile by proactively identifying risks, modifying inventory plans and diversifying our supplier base to mitigate risk of customer order shortages and maintain our supply chain. We continue to proactively manage our business in response to the evolving global economic environment and related uncertainty and intend to take steps to further mitigate impacts to our supply chain as they develop. If these supply chain pressures continue or worsen, or we cannot obtain the transportation and labor services needed to obtain raw materials or fulfill customer orders, such shortages and supply chain issues could have an unfavorable impact on net sales and our operations in the remainder of fiscal 2025. Furthermore, record cocoa prices have been fueled by a third-consecutive short crop in calendar 2024. Cocoa market prices have continued to be volatile and have reached new highs. Cocoa production was down significantly in Ivory Coast and Ghana due to a combination of inclement weather, crop disease and lack of farm investment. Despite higher cocoa prices, consumption remained strong, leading to predictions of a large production deficit. Additionally, as costs increase due to these circumstances or due to overall inflationary pressures, there is a further risk of our not being able to pass (in part or in full) such potential cost increases on to our customers or in a timely manner. If we cannot align costs with prices for our products, our financial performance could be adversely impacted.
Previous wording
Sales volume, measured as pounds sold to customers, increased 24.5% compared to the first quarter of fiscal 2024.
Current wording
Sales volume, measured as pounds sold to customers, increased 7.1% compared to the second quarter of fiscal 2024. Sales volume for the first twenty-six weeks of fiscal 2025 increased 14.9% compared to the first twenty-six weeks of fiscal 2024.
Previous wording
Gross profit decreased $10.5 million, and our gross profit margin, as a percentage of net sales, decreased to 16.9% for the first quarter of fiscal 2025 compared to 24.4% for the first quarter of fiscal 2024.
Current wording
Gross profit decreased $5.7 million, and our gross profit margin, as a percentage of net sales, decreased to 17.4% for the second quarter of fiscal 2025 compared to 19.9% for the second quarter of fiscal 2024. Gross profit decreased $16.2 million, and our gross profit margin decreased to 17.1% from 21.9% for the first twenty-six weeks of fiscal 2025 compared to the first twenty-six weeks of fiscal 2024.
Previous wording
Total operating expenses for the first quarter of fiscal 2025 decreased by $2.9 million, or 9.0%, compared to the first quarter of fiscal 2024. As a percentage of net sales, total operating expenses in the first quarter of fiscal 2025 decreased to 10.7% from 13.9% for the first quarter of fiscal 2024.
Current wording
Total operating expenses for the second quarter of fiscal 2025 increased by $2.5 million, or 8.4%, compared to the second quarter of fiscal 2024. As a percentage of net sales, total operating expenses in the second quarter of fiscal 2025 increased to 10.9% from 10.4% for the second quarter of fiscal 2024. Total operating expenses for the first twenty-six weeks of fiscal 2025 decreased by $0.4 million, or 0.6%, compared to the first twenty-six weeks of fiscal 2024. As a percentage of net sales, total operating expenses for the first twenty-six weeks of fiscal 2025 decreased to 10.8% from 12.0% for the first twenty-six weeks of fiscal 2024.
Previous wording
The total value of inventories on hand at the end of the first quarter of fiscal 2025 increased $19.8 million, or 11.3%, in comparison to the total value of inventories on hand at the end of the first quarter of fiscal 2024.
Current wording
The total value of inventories on hand at the end of the second quarter of fiscal 2025 increased $8.5 million, or 4.3%, in comparison to the total value of inventories on hand at the end of the second quarter of fiscal 2024.
Previous wording
We expect acquisition costs for walnuts to increase significantly and most other major tree nuts and peanuts to increase in the 2024 crop year (which falls into our current 2025 fiscal year). While we began to procure inshell walnuts during the first quarter of fiscal 2025, the total payments due to our walnut growers will not be determined until the second and/or third quarters of fiscal 2025. We will determine the final prices to be paid to the walnut growers based upon current market prices and other factors such as crop size and export demand. We have estimated the liability to our walnut growers and our walnut inventory costs using currently available information. Any difference between our estimated liability and the actual payments will be determined during the second and/or third quarters of fiscal 2025 and will be recognized in our financial results at that time.
Current wording
We have seen acquisition costs for walnuts increase significantly and cashew and pecan costs increase modestly, and we have seen acquisition costs for peanuts slightly decrease in the 2024 crop year (which falls into our current 2025 fiscal year). We completed procurement of inshell walnuts during the first half of fiscal 2025. During the third quarter, we will determine the final prices to be paid to the walnut growers based upon current market prices and other factors such as crop size and export demand. We have estimated the liability to our walnut growers and our walnut inventory costs using currently available information. Any difference between our estimated liability and the actual final liability will be determined during the third quarter of fiscal 2025 and will be recognized in our financial results at that time.
Previous wording
Sales of branded products were approximately 16% and 20% of total consumer sales during the first quarter of fiscal 2025 and fiscal 2024, respectively. Fisher branded products were approximately 57% and 62% of branded sales during the first quarter of fiscal 2025 and fiscal 2024, respectively, with Orchard Valley Harvest branded products accounting for the majority of the remaining branded product sales.
Current wording
Sales of branded products were approximately 21% and 22% of total consumer sales during the second quarter of fiscal 2025 and fiscal 2024, respectively. Fisher branded products were approximately 72% and 73% of branded sales during the second quarter of fiscal 2025 and fiscal 2024, respectively, with Orchard Valley Harvest branded products accounting for the majority of the remaining branded product sales.
Previous wording
Net sales in the consumer distribution channel increased $45.1 million, or 24.4%, and sales volume increased 30.8% in the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024 primarily due the Lakeville Acquisition. Excluding the Lakeville Acquisition, net sales in the consumer distribution channel increased $7.3 million, or 3.9%, and sales volume increased 3.4%. Private brand sales volume increased 36.1% primarily driven by the Lakeville Acquisition. Excluding the Lakeville Acquisition, private brand sales volume increased 3.9% due to new peanut butter and nutrition bar distribution, as well as increased volumes of mixed nuts and snack and trail mix at a mass merchandising retailer, resulting mainly from retail pricing adjustments and rotational distributions. Sales volume of Southern Style Nuts increased 57.3% due to sales to a club store customer who returned to normalized inventory levels compared to the same quarter last year.
Current wording
In the first twenty-six weeks of fiscal 2025, net sales in the consumer distribution channel increased $55.0 million, or 12.9%, and sales volume increased 15.0% compared to the same period of fiscal 2024 due to the Lakeville Acquisition. Excluding the fiscal 2025 first quarter's impact of the Lakeville Acquisition, net sales in the consumer distribution channel increased $17.3 million, or 4.1%, and sales volume increased 3.1%. Private brand sales volume increased 18.0% largely due to the Lakeville Acquisition. Excluding the fiscal 2025 first quarter's impact of the Lakeville Acquisition, private brand sales volume increased 3.9% due to growth in bars from a mass merchandising retailer returning to normalized inventory levels. These increases were partially offset by soft consumer demand at another mass merchandising retailer, in addition to decreased seasonal nut and trail mix volume.
Previous wording
Net sales in the commercial ingredients distribution channel decreased $1.2 million, or 4.4%, and sales volume increased 1.2% in the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024. The sales volume increase was due to the Lakeville Acquisition. Excluding the Lakeville Acquisition, sales volume decreased 0.6%.
Current wording
In the first twenty-six weeks of fiscal 2025, net sales in the commercial ingredients distribution channel decreased $2.4 million, or 4.2%, and sales volume increased 1.3% compared to the same period of fiscal 2024. Excluding the fiscal 2025 first quarter's impact of the Lakeville Acquisition, net sales in the commercial ingredients channel decreased $2.6 million, or 4.7%, and sales volume increased 0.4%. The net sales decrease was due to lost business at a customer and the sales volume increase was attributable to the same reasons cited in the quarterly comparison.
Previous wording
Net sales in the contract manufacturing distribution channel decreased $1.7 million, or 8.0%, and sales volume increased 13.3% in the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024. The increase in sales volume was due to an increase in granola processed in our Lakeville facility for a major customer. Excluding this granola volume, net sales decreased 19.2% and sales volume decreased 19.8% due to reduced peanut distribution to a major customer, resulting from soft consumer demand, and a rotational distribution for a club customer in the first quarter of fiscal 2024, which did not reoccur in the first quarter of fiscal 2025.
Current wording
Net sales in the contract manufacturing distribution channel increased $1.0 million, or 4.4%, and sales volume increased 55.6% in the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024. The increase in sales volume was due to increased granola volume processed in our Lakeville facility. This increase was partially offset by reduced peanut and cashews sales volume to a major customer due to soft consumer demand.
Previous wording
Gross profit decreased by $10.5 million, or 18.4%, to $46.5 million for the first quarter of fiscal 2025 compared to $57.0 million for the first quarter of fiscal 2024. Excluding the Lakeville Acquisition, gross profit decreased approximately 19.1%, or $10.9 million. The decrease in gross profit was due to lower selling prices resulting from competitive pricing pressures and strategic pricing decisions, as well as higher commodity acquisition costs for peanuts and most tree nuts. Additionally, a one-time price concession to a snack bar customer and increased manufacturing spending due to capacity constraints at our Lakeville facility contributed to the overall decrease. These factors were partially offset by increased manufacturing efficiencies at our other facilities. Our gross profit margin, as a percentage of net sales, decreased to 16.9% for the first quarter of fiscal 2025 compared to 24.4% for the first quarter of fiscal 2024 due to the higher net sales base from the Lakeville Acquisition, lower selling prices and higher commodity acquisition costs for peanuts and most tree nuts.
Current wording
Gross profit decreased by $5.7 million, or 9.8%, to $52.3 million for the second quarter of fiscal 2025 compared to $57.9 million for the second quarter of fiscal 2024. The decrease in gross profit was due to lower selling prices caused by competitive pricing pressures and strategic pricing decisions along with higher commodity acquisition costs for most tree nuts. This decrease was partially offset by improved profitability of bars due to operational efficiencies we implemented since the Lakeville Acquisition last year. Our gross profit margin, as a percentage of net sales, decreased to 17.4% for the second quarter of fiscal 2025 compared to 19.9% for the second quarter of fiscal 2024.
Previous wording
Total operating expenses for the first quarter of fiscal 2025 decreased by $2.9 million, or 9.0%, to $29.5 million. Operating expenses decreased to 10.7% of net sales for the first quarter of fiscal 2025 compared to 13.9% of net sales for the first quarter of fiscal 2024.
Current wording
Total operating expenses for the first twenty-six weeks of fiscal 2025 decreased by $0.4 million, or 0.6%, to $62.4 million. Operating expenses decreased to 10.8% of net sales for the first twenty-six weeks of fiscal 2025 compared to 12.0% of net sales for the first twenty-six weeks of fiscal 2024. The decrease in total operating expenses is net of the $2.2 million net gain on bargain purchase that occurred in the second quarter of fiscal 2024 due to the Lakeville Acquisition.
Previous wording
Selling expenses for the first quarter of fiscal 2025 were $19.8 million, a decrease of $2.2 million, or 9.8%, from the first quarter of fiscal 2024. The decrease was driven by a $3.8 million decrease in advertising and consumer insight research expense and a $0.9 million decrease in incentive compensation expense. These decreases were partially offset by a $1.0 million increase in rent expense related to the recent commencement of the Huntley facility lease, a $0.9 million increase in freight expense and $0.5 million increase in outside distribution expense, primarily related to the Lakeville Acquisition.
Current wording
Selling expenses for the first twenty-six weeks of fiscal 2025 were $42.5 million, a decrease of $0.5 million, or 1.2%, from the first twenty-six weeks of fiscal 2024. The decrease was driven primarily by a $4.0 million decrease in advertising and consumer insight research expense, and a $1.5 million decrease in incentive compensation expense. These decreases were largely offset by a $2.0 million increase in rent expense related to our new Huntley facility lease, a $1.8 million increase in freight expense due to an increase in delivered sales pounds, and a $1.1 million increase in compensation-related expenses.
Previous wording
Due to the factors discussed above, income from operations was $17.0 million, or 6.2% of net sales, for the first quarter of fiscal 2025 compared to $24.6 million, or 10.5% of net sales, for the first quarter of fiscal 2024.
Current wording
Due to the factors discussed above, income from operations was $19.4 million, or 6.4% of net sales, for the second quarter of fiscal 2025 compared to $27.6 million, or 9.5% of net sales, for the second quarter of fiscal 2024.
Previous wording
Net rental and miscellaneous expense was $0.4 million for both the first quarter of fiscal 2025 and fiscal 2024.
Current wording
Net rental and miscellaneous expense was $0.3 million for both the second quarter of fiscal 2025 and fiscal 2024.
Previous wording
Pension expense (excluding service costs) was $0.4 million for both the first quarter of fiscal 2025 and fiscal 2024.
Current wording
Pension expense (excluding service costs) was $0.4 million for both the second quarter of fiscal 2025 and fiscal 2024 and $0.7 million for both the first twenty-six weeks of fiscal 2025 and fiscal 2024.
Previous wording
Income tax expense was $4.1 million, or 25.8% of income before income taxes for the first quarter of fiscal 2025 compared to $6.1 million, or 25.6% of income before income taxes, for the first quarter of fiscal 2024.
Current wording
Income tax expense was $8.4 million, or 24.9% of income before income taxes, for the first twenty-six weeks of fiscal 2025 compared to $12.8 million, or 25.9% of income before income taxes, for the first twenty-six weeks of fiscal 2024.
Previous wording
Net income was $11.7 million, or $1.00 per common share basic and diluted, for the first quarter of fiscal 2025, compared to $17.6 million, or $1.52 per common share basic and $1.51 per common share diluted, for the first quarter of fiscal 2024.
Current wording
Net income was $13.6 million, or $1.17 per common share basic and $1.16 per common share diluted, for the second quarter of fiscal 2025, compared to $19.2 million, or $1.65 per common share basic and $1.64 per common share diluted, for the second quarter of fiscal 2024.
Previous wording
The primary uses of cash are to fund our current operations, fulfill contractual obligations, pursue our Long-Range Plan through growing our branded and private brand programs, consummate and integrate business acquisitions, return cash to our stockholders through dividends, repay indebtedness and pay amounts owed under the Retirement Plan. Also, various uncertainties, including cost uncertainties, could result in additional uses of cash. The primary sources of cash are results of operations and availability under our Credit Facility. We anticipate that expected net cash flow generated from operations and amounts available pursuant to the Credit Facility will be sufficient to fund our operations for the next twelve months. Our available credit under our Credit Facility has allowed us to devote more funds to promote our products, increase consumer insight capabilities and promotional efforts, reinvest in the Company through capital expenditures, develop new products, pay cash dividends, consummate strategic investments and business acquisitions, such as the Lakeville Acquisition in fiscal 2024, and explore and pursue other growth strategies outlined in our Long-Range Plan.
Current wording
The primary uses of cash are to fund our current operations, fulfill contractual obligations, pursue our Long-Range Plan through growing our branded and private brand programs, modernize and expand our equipment, consummate and integrate business acquisitions, return cash to our stockholders through dividends, repay indebtedness and pay amounts owed under the Retirement Plan. Also, various uncertainties, including cost uncertainties, could result in additional uses of cash. The primary sources of cash are results of operations and availability under our Credit Facility. Beginning in the current fiscal quarter and continuing into the next fiscal year, we plan to invest approximately $90.0 million in capital expenditures (and related expenses) to acquire and install equipment, and make related infrastructure improvements to expand our production capabilities, increase our efficiency, and further enhance our product offerings to our customers. We intend to obtain one or more equipment loans to finance a portion of this capital investment, and for the remainder we may fund with borrowings under our Credit Facility and/or use available cash generated from our operations. We anticipate that expected net cash flow generated from operations and amounts available pursuant to the Credit Facility and the aforementioned equipment loan or loans will be sufficient to fund our operations and capital expenditures for the next twelve months. Our available credit under our Credit Facility has allowed us to devote more funds to promote our products, increase consumer insight capabilities and promotional efforts, reinvest in the Company through capital expenditures, develop new products, pay cash dividends, consummate strategic investments and business acquisitions, such as the Lakeville Acquisition, and explore and pursue other growth strategies outlined in our Long-Range Plan.
Previous wording
The following table sets forth certain cash flow information for the first quarter of fiscal 2025 and 2024, respectively (dollars in thousands):
Current wording
The following table sets forth certain cash flow information for the first half of fiscal 2025 and 2024, respectively (dollars in thousands):
Previous wording
Operating Activities Net cash provided by operating activities was $8.9 million for the first quarter of fiscal 2025 compared to net cash provided by operating activities of $21.9 million for the comparative period of fiscal 2024. The decrease in operating cash flow was primarily due to lower net income and changes in working capital.
Current wording
Operating Activities Net cash provided by operating activities was $19.9 million for the first twenty-six weeks of fiscal 2025 compared to net cash provided by operating activities of $61.2 million for the comparative period of fiscal 2024. The decrease in operating cash flow was primarily due to changes in working capital and a lower net income.
Previous wording
Raw nut and dried fruit input stocks, some of which are classified as work-in-process, increased by 3.5 million pounds, or 11.4%, at September 26, 2024 compared to September 28, 2023 due to higher quantities of walnuts and pecans on hand partially offset by lower quantities of almonds, peanuts and dried fruit on hand. The weighted average cost per pound of raw nut input stocks on hand at the end of the first quarter of fiscal 2025 increased 0.2% compared to the end of the first quarter of fiscal 2024.
Current wording
Raw nut and dried fruit input stocks, some of which are classified as work-in-process, decreased by 4.9 million pounds, or 7.6%, at December 26, 2024 compared to December 28, 2023 due to lower quantities of walnuts, pecans and peanuts on hand partially offset by higher quantities of almonds and cashews on hand. The weighted average cost per pound of raw nut input stocks on hand at the end of the second quarter of fiscal 2025 increased 33.7% compared to the end of the second quarter of fiscal 2024 primarily due to higher commodity acquisition costs for almost all major tree nuts.
Previous wording
Investing Activities Cash used in investing activities was $12.0 million during the first quarter of fiscal 2025 compared to $6.0 million for the same period last year. Capital asset purchases were $11.9 million during the first quarter of fiscal 2025 compared to $6.0 million for the first quarter of fiscal 2024. We expect total capital expenditures for new equipment, facility upgrades, and food safety enhancements to be approximately $33.0 million for fiscal 2025. Absent any additional material acquisitions or other significant investments, we believe that cash on hand, combined with cash provided by operations and borrowings available under the Credit Facility, will be sufficient to meet the cash requirements for planned capital expenditures.
Current wording
Investing Activities Cash used in investing activities was $25.6 million during the first twenty-six weeks of fiscal 2025 compared to $69.9 million for the same period last year. The decrease in cash used in investing activities was primarily due to the $59.0 million net purchase price for the Lakeville Acquisition in second quarter of fiscal 2024. Capital asset purchases were $25.5 million during the first twenty-six weeks of fiscal 2025 compared to $10.9 million for the first twenty-six weeks of fiscal 2024. We expect total capital expenditures for new equipment, including progress payments, facility upgrades and food safety enhancements to be approximately $65.0 million for fiscal 2025. A significant amount of the fiscal 2025 capital expenditures will be for the planned purchase of equipment to expand our production capabilities and related infrastructure improvements as described above. We expect to fund these capital purchases through a combination of borrowings under our existing Credit Facility, use of available cash from our operations and equipment loans expected to be incurred in the second half of fiscal 2025. Absent any additional material acquisitions or other significant investments, we believe that cash on hand, combined with cash provided by operations, borrowings available under the Credit Facility and equipment financing, will be sufficient to meet the cash requirements for planned capital expenditures.
Previous wording
Financing Activities Cash provided by financing activities was $3.0 million during the first quarter of fiscal 2025 compared to cash used of $16.9 million for the same period last year. Net borrowings under our Credit Facility were $26.7 million during the first quarter of fiscal 2025 compared to net borrowings of $6.0 million for the first quarter of fiscal 2024. The increase in credit facility borrowings was primarily due an increase in working capital requirements in the current first quarter. Dividends paid in the first quarter of fiscal 2025 were approximately $1.2 million more than dividends paid in the same period last year.
Current wording
Financing Activities Cash provided by financing activities was $5.6 million during the first twenty-six weeks of fiscal 2025 compared to $8.8 million for the same period last year. Net borrowings under our Credit Facility were $29.3 million during the first twenty-six weeks of fiscal 2025 compared to $32.1 million for the first twenty-six weeks of fiscal 2024. Dividends paid in the first twenty-six weeks of fiscal 2025 were approximately $1.2 million more than dividends paid in the same period last year.
Previous wording
In August 2008, we completed the consolidation of our Chicago-based facilities into our Elgin headquarters (“Elgin Site”). The Elgin Site includes both an office building and a warehouse. We are currently attempting to find additional tenants for the available space in the office building at the Elgin Site. Until additional tenant(s) are found, we will not receive the benefit of rental income associated with such space. Approximately 66% of the rentable area in the office building is currently vacant. Approximately 29% of the rentable area has not been built-out. There can be no assurance that we will be able to lease the unoccupied space and further capital expenditures will likely be necessary to lease the remaining space.
Current wording
In August 2008, we completed the consolidation of our Chicago-based facilities into our Elgin headquarters (“Elgin Site”). The Elgin Site includes both an office building and a warehouse. We are currently attempting to find additional tenants for the available space in the office building at the Elgin Site. Until additional tenant(s) are found, we will not receive the benefit of rental income associated with such space. Approximately 68% of the rentable area in the office building is currently vacant. Approximately 29% of the rentable area has not been built-out. There can be no assurance that we will be able to lease the unoccupied space and further capital expenditures will likely be necessary to lease the remaining space.
Previous wording
On March 5, 2020, we entered into an Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) which amended and restated our Credit Agreement (the “Former Credit Agreement”) with the Bank Lenders. The Amended and Restated Credit Agreement provided for a $117.5 million senior secured revolving credit facility with the same borrowing capacity, interest rates and applicable margin as the Former Credit Agreement and extended the term of the Former Credit Agreement from July 7, 2021 to March 5, 2025.
Current wording
On March 5, 2020, we entered into an Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) which amended and restated our Credit Agreement (the “Former Credit Agreement”) with bank lenders. The Amended and Restated Credit Agreement provided for a $117.5 million senior secured revolving credit facility with the same borrowing capacity, interest rates and applicable margin as the Former Credit Agreement and extended the term of the Former Credit Agreement from July 7, 2021 to March 5, 2025.
Previous wording
On September 29, 2023, we entered into the Second Amendment to our Amended and Restated Credit Facility, which (among other things) increased the amount available to borrow under the Credit Facility to $150.0 million, extended the maturity date to September 29, 2028 and allows the Company to pay up to $100 million in dividends per year, subject to meeting availability tests.
Current wording
On September 29, 2023, we entered into the Second Amendment to our Amended and Restated Credit Facility (the “Second Amendment”) which, among other things, increased the amount available to borrow under the Credit Facility to $150.0 million, extended the maturity date to September 29, 2028 and allows the Company to pay up to $100 million in dividends per year, subject to meeting availability tests.
Previous wording
At September 26, 2024, the weighted average interest rate for the Credit Facility was 7.0%. The terms of the Credit Facility contain covenants that, among other things, require us to restrict investments, indebtedness, acquisitions and certain sales of assets and limit annual cash dividends or distributions, transactions with affiliates, redemptions of capital stock and prepayment of indebtedness (if such prepayment, among other things, is of a subordinate debt). If loan availability under the borrowing base calculation falls below $25.0 million, we will be required to maintain a specified fixed charge coverage ratio, tested on a monthly basis, until loan availability equals or exceeds $25.0 million for three consecutive months. All cash received from customers is required to be applied against the Credit Facility. The Bank Lenders have the option to accelerate and demand immediate repayment of our obligations under the Credit Facility in the event of default on the payments required under the Credit Facility, a change in control in the ownership of the Company, non-compliance with the financial covenant or upon the occurrence of other defaults by us under the Credit Facility. As of September 26, 2024, we were in compliance with all covenants under the Credit Facility, and we currently expect to be in compliance with the financial covenant in the Credit Facility for the foreseeable future. At September 26, 2024, we had $97.7 million of available credit under the Credit Facility. If this entire amount were borrowed at September 26, 2024, we would still be in compliance with all restrictive covenants under the Credit Facility.
Current wording
At December 26, 2024, the weighted average interest rate for the Credit Facility was 6.7%. The terms of the Credit Facility contain covenants that, among other things, require us to restrict investments, indebtedness, acquisitions and certain sales of assets and limit annual cash dividends or distributions, transactions with affiliates, redemptions of capital stock and prepayment of indebtedness (if such prepayment, among other things, is of a subordinate debt). If loan availability under the borrowing base calculation falls below $25.0 million, we will be required to maintain a specified fixed charge coverage ratio, tested on a monthly basis, until loan availability equals or exceeds $25.0 million for three consecutive months. All cash received from customers is required to be applied against the Credit Facility. The Bank Lenders have the option to accelerate and demand immediate repayment of our obligations under the Credit Facility in the event of default on the payments required under the Credit Facility, a change in control in the ownership of the Company, non-compliance with the financial covenant or upon the occurrence of other defaults by us under the Credit Facility. As of December 26, 2024, we were in compliance with all covenants under the Credit Facility and we currently expect to be in compliance with the financial covenant in the Credit Facility for the foreseeable future. At December 26, 2024, we had $95.6 million of available credit under the Credit Facility. If this entire amount were borrowed at December 26, 2024, we would still be in compliance with all restrictive covenants under the Credit Facility.
Previous wording
In September 2006, we sold our Selma, Texas properties (the “Selma Properties”) to two related party partnerships for $14.3 million and are leasing them back. The selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value. The lease for the Selma Properties has a ten-year term at a fair market value rent with three five-year renewal options. In September 2015, we exercised two of the five-year renewal options which extended the lease term to September 2026. The lease extension also reduced the monthly lease payment on the Selma Properties, beginning in September 2016, to reflect then current market conditions. At the end of each five-year renewal option, the base monthly lease amounts are reassessed, and the monthly payments increased to $114 beginning in September 2021. One five-year renewal option remains. Also, we have an option to purchase the Selma Properties from the owner at 95% (100% in certain circumstances) of the then fair market value, but not less than the original $14.3 million purchase price. The provisions of the arrangement are not eligible for sale-leaseback accounting and the $14.3 million was recorded as a debt obligation. No gain or loss was recorded on the Selma Properties transaction. As of September 26, 2024, $7.0 million of the debt obligation was outstanding.
Current wording
In September 2006, we sold our Selma, Texas properties (the “Selma Properties”) to two related party partnerships for $14.3 million and are leasing them back. The selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value. The lease for the Selma Properties has a ten-year term at a fair market value rent with three five-year renewal options. In September 2015, we exercised two of the five-year renewal options which extended the lease term to September 2026. The lease extension also reduced the monthly lease payment on the Selma Properties, beginning in September 2016, to reflect then current market conditions. At the end of each five-year renewal option, the base monthly lease amounts are reassessed, and the monthly payments increased to $114 beginning in September 2021. One five-year renewal option remains. Also, we have an option to purchase the Selma Properties from the owner at 95% (100% in certain circumstances) of the then fair market value, but not less than the original $14.3 million purchase price. The provisions of the arrangement are not eligible for sale-leaseback accounting and the $14.3 million was recorded as a debt obligation. No gain or loss was recorded on the Selma Properties transaction. As of December 26, 2024, $6.8 million of the debt obligation was outstanding.
Previous wording
Refer to Note 12 – “Recent Accounting Pronouncements” of the Notes to Consolidated Financial Statements, contained in Part I, Item 1 of this form 10-Q, for a discussion of recently issued accounting pronouncements.
Current wording
Refer to Note 12 – “Recent Accounting Pronouncements” of the Notes to Consolidated Financial Statements, contained in Part I, Item 1 of this form 10-Q, for a discussion of recently issued and adopted accounting pronouncements.
Previous wording
Some of the statements in this release are forward-looking. These forward-looking statements may be generally identified by the use of forward-looking words and phrases such as “will”, “intends”, “may”, “believes”, “anticipates”, “should” and “expects” and are based on the Company’s current expectations or beliefs concerning future events and involve risks and uncertainties. Consequently, the Company’s actual results could differ materially. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where expressly required to do so by law. Among the factors that could cause results to differ materially from current expectations are: (i) sales activity for the Company’s products, such as a decline in sales to one or more key customers, or to customers or in the nut or snack bar categories generally, in some or all channels, a change in product mix to lower price products, a decline in sales of private brand products or changing consumer preferences, including a shift from higher margin products to lower margin products; (ii) changes in the availability and costs of raw materials and ingredients; (iii) the impact of any fixed price commitments with customers; (iv) the ability to pass on price increases to customers if commodity costs rise and the potential for a negative impact on demand for, and sales of, our products from price increases; (v) the ability to accurately measure and estimate bulk inventory, fluctuations in the value and quantity of the Company’s nut inventories due to fluctuations in the market prices of nuts and bulk inventory adjustments, respectively; (vi) losses associated with product recalls, product contamination, food labeling or other food safety issues, or the potential for lost sales or product liability if customers lose confidence in the safety of the Company’s products or in nuts or nut products in general, or are harmed as a result of using the Company’s products; (vii) the ability of the Company to control costs (including inflationary costs) and manage shortages in areas such as inputs, transportation and labor; (viii) uncertainty in economic conditions, including the potential for inflation or economic downturn leading to decreased consumer demand; (ix) the adverse effect of work slowdowns or stoppages, strikes, boycotts or other types of labor unrest; (x) the adverse effect of litigation and/or legal settlements, including potential unfavorable outcomes exceeding any amounts accrued; (xi) losses due to significant disruptions at any of our production, processing or warehouse facilities; (xii) the ability to implement our Long-Range Plan, including growing our branded and private brand product sales, diversifying our product offerings (including by the launch of new products) and expanding into alternative sales channels; (xiii) technology disru…
Excerpt shortened here; the source contains the full paragraph.
Current wording
Some of the statements in this release are forward-looking. These forward-looking statements may be generally identified by the use of forward-looking words and phrases such as “will”, “intends”, “may”, “believes”, “anticipates”, “should” and “expects” and are based on the Company’s current expectations or beliefs concerning future events and involve risks and uncertainties. Consequently, the Company’s actual results could differ materially. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where expressly required to do so by law. Among the factors that could cause results to differ materially from current expectations are: (i) sales activity for the Company’s products, such as a decline in sales to one or more key customers, or to customers or in the nut category generally, in some or all channels, a change in product mix to lower price products, a decline in sales of private brand products or changing consumer preferences, including a shift from higher margin products to lower margin products; (ii) changes in the availability and costs of raw materials and ingredients and the impact of fixed price commitments with customers; (iii) the ability to pass on price increases to customers if commodity costs rise and the potential for a negative impact on demand for, and sales of, our products from price increases; (iv) the ability to measure and estimate bulk inventory, fluctuations in the value and quantity of the Company’s nut inventories due to fluctuations in the market prices of nuts and bulk inventory estimation adjustments, respectively; (v) the Company’s ability to appropriately respond to, or lessen the negative impact of, competitive and pricing pressures; (vi) losses associated with product recalls, product contamination, food labeling or other food safety issues, or the potential for lost sales or product liability if customers lose confidence in the safety of the Company’s products or in nuts or nut products in general, or are harmed as a result of using the Company’s products; (vii) the ability of the Company to control costs (including inflationary costs) and manage shortages or other disruptions in areas such as inputs, transportation and labor; (viii) uncertainty in economic conditions, including the potential for inflation or economic downturn leading to decreased consumer demand; (ix) the timing and occurrence (or nonoccurrence) of other transactions and events which may be subject to circumstances beyond the Company’s control; (x) the adverse effect of labor unrest or disputes, litigation and/or legal settlements, including potential unfavorable outcomes exceeding any amounts accrued; (xi) losses due to significant disruptions at any of our production or processing facilities or employee unavailability due to labor shortages; (xii) the ability to implem…
Excerpt shortened here; the source contains the full paragraph.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The following table shows a comparison of net sales by distribution channel (dollars in thousands):
Current report — wording carried from elsewhere
Sales of branded products were approximately 19% and 21% of total consumer sales during the first twenty-six weeks of fiscal 2025 and fiscal 2024, respectively. Fisher branded products were approximately 66% and 69% of branded sales during the first twenty-six weeks of fiscal 2025 and fiscal 2024, respectively, with Orchard Valley Harvest branded products accounting for the majority of the remaining branded product sales.