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About John B. Sanfilippo & Son, Inc.

John B. Sanfilippo & Son (JBSS) is one of the largest processors of peanuts, almonds, pecans, walnuts, cashews, and other nuts in the US. It markets the nuts as snacks and baking ingredients under a number of private labels as well as its own name brands, including Fisher, Orchard Valley Harvest, Squirrel, and Sunshine Country. The company also produces and distributes other foods and snacks, such as peanut butter, dried fruit and trail mixes, corn snacks, sesame sticks, and candy. JBSS's products are sold worldwide to consumers (via retailers) and, less so, to commercial ingredient channels (food service and industrial markets) and contract packagers.

Operations

Raw and processed nuts account for nearly 80% of JBSS's sales, with cashews & mixed nuts the top seller followed by peanuts.

The company reports its sales by distribution channel, with consumer -- which supplies finished products to retailers -- accounting for about 70%. The commercial ingredient and contract packaging channels generate the rest.

Geographic Reach

Most of JBSS's sales are in the US.

The Illinois-based company has processing, packaging, warehousing, and distribution operations in Bainbridge, Georgia; Elgin, Illinois; Garysburg, North Carolina; Gustine, California; and Selma, Texas.

Sales and Marketing

JBSS serves some 300 customers through its three channels; they include retail outlets such as supermarket chains, wholesalers, and supercenters as well as other food manufacturers.

The company is heavily reliant on a few customers, including Walmart (which accounts for a third of sales) and Target (about 10%).

JBSS markets its nuts through its own sales department and a network of some 60 independent brokers and various independent distributors and suppliers. Marketing and advertising expenses were $11.9 million, $11.3 million, and $10.1 million in fiscal years 2019, 2018, and 2017, respectively.

Financial Performance

After building to revenue of more than $950 million in fiscal 2016, JBSS has seen sales fall 8% since. Net income, however, has been steadily rising over the time, up 30% since 2016.

In fiscal 2019 (ended June) the company reported revenue of $876.2 million, down just more than 1% from the prior year. An increase in volume was not enough to offset a decrease in weighted average price per pound as sales shifted from higher-priced tree nuts to lower-priced peanuts and trail mix products. This shift impacted the commercial ingredients and contract packaging channels.

Net income that year hit $39.5 million, up 22% from fiscal 2018. Cost of sales declined 4%, and the company also had a lower income tax expense.

Cash at the end of fiscal 2019 was $1.6 million, an increase of $142 thousand from the prior year. Cash from operations contributed $83.5 million to the coffers, while investing activities used $14.6 million, mainly for capital expenditures. Financing activities used another $68.7 million for net short-term repayments and dividends to stockholders.

Strategy

JBSS's strategy includes growing the Fisher, Orchard Valley Harvest, Squirrel, and Southern Style brands. The company added several new grocery customers for its Fisher nuts in 2019 and is focused on expanded distribution and product innovation for Squirrel Brand and Southern Style Nuts. Increased sales across its product portfolio, particularly from Orchard Valley Harvest and Fisher snack nut and trail mix products, has pushed the consumer distribution channel to nearly 70% of total annual company sales volume. 

JBSS must deal with volatility in raw nut prices amid strong competition from other known and private brands.

Company Background

JBSS traces its history to 1922 when Gaspare Sanfilippo and his son John founded a pecan shelling company in Chicago. The company diversified into other nuts in 1959.

John B. Sanfilippo & Son, Inc.

1703 N RANDALL RD
Elgin, IL 60123-7820
Phone: 1 (847) 289-1800

Stats

Employer Type: Publicly Owned
Stock Symbol: JBSS
Stock Exchange: , NASDAQ
Chairman and CEO: Jeffrey T. Sanfilippo
COO, President and Assistant Secretary: Jasper B. Sanfilippo
CFO, Group President and Secretary: Michael J. Valentine
Employees (This Location): 240
Employees (All Locations): 1,470

Major Office Locations

Elgin, IL

Other Locations

Gustine, CA
Bainbridge, GA
Elgin, IL
Westmont, IL
Garysburg, NC
Selma, TX