Q4 2024 John B. Sanfilippo & Son Inc Earnings Call

August 21, 2024

[music].

Operator: ¶¶ In 2024, fourth quarter earnings conference call. Thank you for joining us.

Operator: And the call with me today is Frank Pellegrino, our COO, & Jasper Sanfilippo, our COO. We may make some forward-looking statements today. These statements are based on our current expectations, and they involve certain risks and uncertainties. The factors that could negatively impact results are explained in the various SEC filings that we have made, including forms 10-K and 10-Q. We encourage you to refer to the filings to learn more about these risks and uncertainties that are inherent in our business.

Jeffrey Sanfilippo: On the call with me today is Frank Pellegrino, our CFO, and Jasper Sanfilippo, our COO.

On the call with me today is Frank Pellegrino, our CFO and Jasper Sanfilippo our CLO.

Jeffrey Sanfilippo: We may make some forward-looking statements today. These statements are based on our current expectations, and they involve certain risks and uncertainties.

Jeffrey Sanfilippo: We may make some forward-looking statements today. These statements are based on our current expectations, and they involve certain risks, and uncertainties.

We may make some forward looking statements today.

Statements are based on our current expectations.

Jeffrey Sanfilippo: The factors that could negatively impact results are explained in the various SEC filings that, we have made, including Forms 10-K and 10-Q.

Certain risks and uncertainties.

Jeffrey Sanfilippo: Factors that could negatively impact results are explained in the various SEC filings that we have made, including Forms 10-K and 10-Q.

That could negatively impact results are explained in the various SEC filings that we have made including forms 10-K and 10-Q.

Jeffrey Sanfilippo: We encourage you to refer to the filings to learn more about these risks and uncertainties, that are inherent in our business.

Jeffrey Sanfilippo: We encourage you to refer to the filings to learn more about these risks and uncertainties that are inherent in our business.

We encourage you to refer to these filings to learn more about these risks and uncertainties that are inherent in our business.

Jeffrey Sanfilippo: I am proud to report a successful and historic fiscal 2024, as we exceeded 1 billion in sales for the first time in our company's history. We also successfully executed a key component of our strategic plan by further diversifying our product offerings through the acquisition, integration, and optimization of our Lakeville Bar Facility and Operations. We rate our annual dividend by 6.3% to 85% per share and supplemented our annual dividend with an additional special dividend of $1.25 per share, both of which will be paid on September 11th, 2024. These results were due to our team's unyielding perseverance and leadership as we navigated through a challenging operating environment in fiscal 2024.

Jeffrey Sanfilippo: I am proud to report a successful and historic fiscal 2024 as we exceeded $1 billion in sales for the first time in our company's history. We also successfully executed a key component of our strategic plan by further diversifying our product offerings through the acquisition, integration, and optimization of our Lakeville Bar facility and operations.

Jeffrey Sanfilippo: I am proud to report a successful and historic fiscal 2024, as we exceeded $1 billion in, sales for the first time in our company's history. We also successfully executed a key component of our strategic plan by further diversifying, our product offerings through the acquisition, integration, and optimization of our Lakeville, Bar facility and operations.

I'm proud to report a successful historic fiscal 'twenty 'twenty four as we exceeded 1 billion in sales.

First time in our company's history.

We also successfully executed a key component of our strategic plan and further diversifying our product offerings through the acquisition integration and optimization of our Lakeville bar facility and operations.

Jeffrey Sanfilippo: We raised our annual dividend by 6.3% to $0.85 per share and supplemented our annual dividend with an additional special dividend of $1.25 per share, both of which will be paid on September 11th, 2024.

Jeffrey Sanfilippo: We raised our annual dividend by 6.3% to $0.85 per share and supplemented our annual, dividend with an additional special dividend of $1.25 per share, both of which will be paid on September 11, 2024.

We raised our annual dividend by six 3% to 85 cents per share and supplemented our annual dividend with an additional special dividend of $1 25 per share both of which will be paid on September 11th 2024.

Jeffrey Sanfilippo: These results were due to our team's unyielding perseverance and leadership as we navigated through a challenging operating environment in Fiscal 2024. Additionally, we recognize and rewarded our talented team members for their outstanding contributions in executing our strategic plan.

Jeffrey Sanfilippo: These results were due to our team's unyielding perseverance and leadership as we navigated, through a challenging operating environment in fiscal 2024. Additionally, we recognized and rewarded our talented team members for their outstanding, contributions in executing our strategic plan.

These results were due to our team's unyielding perseverance and leadership as we navigated through a challenging operating environment in fiscal 2024.

Jeffrey Sanfilippo: Additionally, we recognize and rewarded our talented team members who are outstanding contributions in executing our strategic plan. I am so proud of our associates across the company who work hard on expanding our product portfolio. Their dedication to quality, service, and innovation in their commitment to our customers and consumers is remarkable. Our snack and nutrition by our offering generated approximately $131 million in that sale for the fiscal year, which $120 million was related to the Lakeville acquisition. In addition, we made substantial progress in optimizing the operations in Lakeville ahead of schedule and are excited about the expected impact it will have in our operating results in fiscal 2025 and beyond.

Additionally, we recognized and rewarded our talented team members and their outstanding contributions in executing our strategic plan I.

Jeffrey Sanfilippo: I am so proud of our associates across the company who worked hard on expanding our product portfolio. Their dedication to quality, service, and innovation, and their commitment to our customers and consumers is remarkable.

Jeffrey Sanfilippo: I am so proud of our associates across the company who worked hard on expanding our product, portfolio. Their dedication to quality, service, and innovation, and their commitment to our customers, and consumers is remarkable.

I am so proud of our associates across the company, we worked hard on expanding our product portfolio.

Their dedication to quality service and innovation, our commitment to our customers and consumers is remarkable.

Jeffrey Sanfilippo: Our snack and nutrition bar offering generated approximately $131 million in net sales over the fiscal year, of which $120 million was related to the Lakeview Acquisition.

Jeffrey Sanfilippo: Our snack and nutrition bar offering generated approximately $131 million in net sales over, the fiscal year, of which $120 million was related to the Lakeville acquisition.

Our snack and nutrition bar offerings generated approximately $131 million in net sales for the fiscal year.

It's 120 million was related to the acquisition.

Jeffrey Sanfilippo: In addition, we made substantial progress in optimizing the operations in Lakeville, ahead of schedule and are excited about the expected impact it will have on our operating results in fiscal 2025 and beyond.

Jeffrey Sanfilippo: In addition, we made substantial progress in optimizing the operations in Lakeville ahead of schedule and are excited about the expected impact it will have on our operating results in fiscal 2025 and beyond.

In addition, we made substantial progress in optimizing the operations and makes all ahead of schedule and are excited about the expected impact you will have in our operating results in fiscal 2025 and beyond.

Jeffrey Sanfilippo: Through the hard work of our team, our net sales from Lakeville operations were at the top end of our original range and delusion per share from the Lakeville acquisition. In the last, and for the fiscal year was approximately $0.17 per share, which was significantly better than our original expected per share delusion of $80 to $0.80 to $1.

Jeffrey Sanfilippo: Through the hard work of our team, our net sales from Lakeville Operations were at the top end of our original range and dilution per share from the Lakeville acquisition. In the last, And for the fiscal year was approximately $0.17 per share, which was significantly better than our original expected per share dilution of $0.80 to $1.00.

Jeffrey Sanfilippo: Through the hard work of our team, our net sales from Lakeville operations were at the, top end of our original range and dilution per share on the Lakeville acquisition. In the last – and for the fiscal year was approximately $0.17 per share, which was significantly, better than our original expected per share dilution of $0.80 to $1.

Through the hard work of our team our net sales from Rachel operations were at the top end of our original range and dilution per share.

Lethal acquisition.

And the last.

Yeah.

And for the fiscal year was approximately 17 cents per share, which was significantly better than our original expected per share dilution of 80 to 80 cents to a dollar.

Jeffrey Sanfilippo: For the past fiscal year, our consumer channel has faced significant headwinds with declining, consumption due to inflation and other economic factors in the snack, trail, and recipe nut categories. Our fourth quarter results, although strong, were impacted by investments we made with, our customers that we anticipate will deliver future benefits through category growth and increased sales volume.

Jeffrey Sanfilippo: For the past year, our consumer channel has faced significant headwinds with declining consumption due to inflation and other economic factors in the snack, trail, and recipe-node. Our fourth quarter results, although strong, were impacted by investments we made with our customers, where we anticipate will deliver future benefits through category growth and increased sales volume. Looking ahead for fiscal 25, we are focused on accelerating our volume growth by expanding on the success of our private brand, GAR portfolio. Rebuilding our nut and trail business through price, pack architecture, and innovation, and expanding our manufacturing capabilities. We recently released a new 400,000 square foot warehouse in Huntley, Illinois, just a few miles from our Elgin headquarters.

Speaker Change: For the past year, our consumer channel his face significant headwinds with declining consumption due to inflation and other economic factors and the snack trail and recipe nut categories.

Speaker Change: Our fourth quarter results, although strong were impacted by investments we made with our customers, we anticipate will deliver future benefits to category growth and increased sales volume.

Jeffrey Sanfilippo: Looking ahead for Fiscal 25, we are focused on accelerating our volume growth by expanding on the success of our private brand GAR portfolio.

Jeffrey Sanfilippo: Looking ahead for fiscal 2025, we are focused on accelerating our volume growth by expanding, on the success of our private brand bar portfolio, rebuilding our nut and trail business through price, pack architecture, and innovation, and expanding our manufacturing capabilities.

Speaker Change: Looking ahead for fiscal 'twenty five we are focused on accelerating our volume growth by expanding on the success of our private brands carports.

Jeffrey Sanfilippo: Rebuilding our nut and trail business through price pack architecture and innovation and expanding our manufacturing capabilities. We recently leased a new 400,000 square foot warehouse in Huntley, Illinois, just a few miles from our Elgin headquarters. We plan to move our warehouse operations to that facility, which will free up about 250,000 square feet of space to expand production, bars, and nut and trail mix packages.

Speaker Change: Rebuilding our nuts trail business through price pack architecture, and innovation and expanding our manufacturing capabilities.

Jeffrey Sanfilippo: We recently leased a new 400,000 square foot warehouse in Huntley, Illinois, just a few miles from our Elgin headquarters. We plan to move our warehouse operations to that facility, which will free up about 250,000 square feet of space to expand production, bars, and nut and trail mix packaging.

Speaker Change: We recently released a new 400000 square foot warehouses hotly, Illinois, just a few miles from our Elgin headquarters, we plan to move our warehouse operations to that facility, which will free up about 250000 square feet of space to expand production bars and <unk> packaging.

Jeffrey Sanfilippo: We plan to move our warehouse operations to that facility, which will free up about 250,000 square feet of space to expand production and bars and nut and trail mix packaging.

Jeffrey Sanfilippo: We are confident we can continue to deliver strong operating results and create long-term value for our shareholders through the execution of our long-range plan to become a $2 billion business.

Jeffrey Sanfilippo: We are confident that we can continue to deliver strong operating results and create long-term value for shareholders through the execution of our long-range plan to become a $2 billion business. We are nuts about creating real food that brings joy, nourishes people, and protects the planet. The JVSS is executing on that mission.

Speaker Change: We're confident we can continue to deliver strong operating results and create long term value for shareholders through the execution of our long range plan to become a $2 billion business.

Jeffrey Sanfilippo: We are nuts about creating real food that brings joy, nourishes people, and protects the planet, and JBSS is executing on that mission.

Jeffrey Sanfilippo: We are nuts about creating real food that brings joy, nourishes people, and protects the planet.

Speaker Change: We are nuts about creating real seed brings joy nurses people and protect the planet. The Jbs S is executing on that mission.

Jeffrey Sanfilippo: JBSS is executing on that mission.

Jeffrey Sanfilippo: I'll now turn the call over to Frank to discuss our financial performance.

Jeffrey Sanfilippo: I'll now turn the call over to Frank to discuss our financial report.

Jeffrey Sanfilippo: I'll now turn the call over to Frank to discuss our financial components.

I'll now turn the call over to Frank to discuss our financial performance.

Frank Pellegrino: Thank you, Jeffrey.

Frank Pellegrino: Thank you, Jeffrey, starting with the income statement.

Frank Pellegrino: Starting with the income statement. Net sales for the fourth quarter of fiscal 2024 increased 15.1%; 269.6 million incurred net sales of 234.2 million for the fourth quarter of fiscal 2023. Net sales for the current fourth quarter included about 24.2 million of net sales in the Lakeville acquisition. Excluding the Lakeville acquisition, net sales decreased 8.9 million, or 3.8%. The client was due to a 1.9% decrease in sales volume, which is defined as pound-salt-to-customers combined, where a 1.9% decrease in the weighted average sales price per pound. The decrease in the weighted average selling price primarily resulted from lower selling prices for all major nut types, due to competitive pricing pressures and strategic pricing decisions.

Speaker Change: Jeffrey.

Frank Pellegrino: Starting with the income statement.

Frank: Starting with the income statement.

Frank Pellegrino: Net sales for the fourth quarter of fiscal 2024 increased 15.1%. $269.6M Net sales of $234.2M Q4 FY2023, Net sales for the current quarter include approximately $44.2 million of net sales in Lakeville acquisitions. Excluding the Lakeville acquisition, net sales decreased $8.9 million, or 3.8%.

Frank: Net sales for the fourth quarter fiscal 2024 increased 15, 1%.

Frank: $269 6 million.

Speaker Change: Net sales of $234 2 million for fourth.

Frank: Fourth quarter of fiscal 2023.

Frank Pellegrino: Net sales for the fourth quarter of fiscal 2024 increased 15.1%, $269.6 million, and incurred net sales of $234.2 million for the fourth quarter of fiscal 2023. Net sales for the current fourth quarter included approximately $44.2 million of net sales in the Lakeville acquisition. Excluding the Lakeville acquisition, net sales decreased $8.9 million, or 3.8%. The decline was due to a 1.9% decrease in sales volume, which is defined as pounds sold to customers, combined with a 1.9% decrease in the weighted average sales price per pound.

Frank: Net sales for the current quarter included approximately $44 2 million of net sales.

Frank: Sure.

Frank: Excluding the Mako acquisition net sales decreased $8 9 million or three 8%.

Frank Pellegrino: The client was due to a 1.9% decrease in sales volume. This is defined as pounds sold to customers combined with a 1.9% decrease in the weighted average sales price per pound. Decrease in the way of average selling price primarily resulted from lower selling prices for all major nut types, due to competitive pricing pressures and strategic pricing decisions.

Frank: The mine was due to a one 9% decrease in sales volume.

Frank: Sign as pounds sold to customers buying or a one 9% decrease in the weighted average sales price.

Frank Pellegrino: Decrease in the weighted average selling price primarily resulted from lower selling prices for all major nut types due to competitive pricing pressures and strategic pricing decisions.

Frank: The decrease in the weighted average selling price primarily resulted from lower selling prices for all major nut types due to competitive pricing pressures and strategic pricing decisions.

Frank Pellegrino: Sales volume declined for peanuts, almonds, pecans, and walnuts, which was partially offset by sales volume increases for cashews and snack and trail mix in the fourth quarter.

Frank Pellegrino: Sales volume declined for peanuts, almonds, beef nons, and walnuts, which was partially offset by sales volume increases for cashews and net entrails in the fourth quarter. Sales volume declined for a 5.4% increase in private brand sales. Excluding the impact of the Lakeville acquisition, sales volume increased 1.8% in the consumer distribution channel, primarily due to a 1.5% increase in private brand sales volume. Sales volume increased for a private brand in the consumer distribution channel was mainly driven by new pivot distribution and increased volume of mixed nuts and a mass merchandising retailer, due to retail pricing adjustments, which were partially offset by decreased consumer demand for almonds at the same rate.

Frank: So that was a volume decline for peanuts, almonds, pecans and walnuts.

Frank: Which was partially offset by sales volume increases for cashews.

Frank: <unk> in the fourth quarter.

Frank Pellegrino: Sales volume increased 31% in the consumer distribution channel, primarily due to the Lakeville acquisition, whose sales volume predominantly consists of private brand borrowers and accounted for a 35.4% increase in private brand sales.

Frank Pellegrino: Sales volume increased 31% in the consumer distribution channel, primarily due to the Lakeville acquisition, of private brand borrowers and accounted for a 35.4% increase in private brand sales. Excluding the impact of the Lakeville acquisition, sales volume increased 1.8% in the consumer distribution channel, primarily due to a 1.5% increase in private brand sales volume, sales volume increase for our private brand, the Consumer Distribution Channel, was mainly driven by new PBR distribution and increased volume of mixed nuts at a mass merchandising retailer due to retail price adjustments, which were partially offset by decreased consumer demand for almonds at the same retail price.

Frank: They also have increased 31% in consumer distribution channel primarily due to late.

Frank: <unk>.

Frank: Sales volume.

Frank: Our private brand bars and accounted for 35, 4% increase in private brand sales.

Frank Pellegrino: Excluding the impact of the Lakeville acquisition, sales volume increased 1.8% in the consumer distribution channel, primarily due to a 1.5% increase in private brand sales volume. Sales volume increase for a private brand in the consumer distribution channel was mainly driven by new PFR distribution and increased volume of mixed nuts at a mass merchandising retailer due to retail pricing adjustments, which were partially offset by decreased consumer demand for almonds at the same retailer.

Frank: Excluding the impact of the Lakeville acquisition sales volume increased one 8% is consumer distribution channel primarily due to a one 5% decrease in private brands.

Frank: Sales volume increased for our private brands.

Frank: Tumor distribution channel was mainly driven by new pier bar distribution and each respond with mixed nuts and mass merchandising retailer due to retail price adjustments, which were partially offset by decreased consumer demand almonds retail.

Frank Pellegrino: Distribution of snack and trail mix at a new grocery store retailer and increased distribution of snack and trail mix at a current grocery store retailer was tempered by lower consumer demand for snack and trail mix products at another mass merchandising retailer.

Frank Pellegrino: The distribution of SNAC and trail mix and new grocery store retailer and increased distribution of SNAC and trail mix at Curry grocery store retailer was tempered by Laura consumer demand for SNAC and trail mix products at our mass merchandise unit. The 4.3% increase in sales volume for Brennan products, which includes Fisher recipe nuts, Fisher SNAC nuts, Archivellia harvest, and Southern style nuts, the Consumer Distribution Channel, was primarily attributable to a 21.8% increase in the sales volume of ortho value harvest due to enhanced promotion activity at grocery store retailer and new rotational distribution at a club store customer.

Frank Pellegrino: Distribution of snack and trail mix at new grocery store retailer Increased distribution of snack and trail mix at current grocery store retailer, tempered by lower consumer demand for snack and trail mix products and our mass merchandise.

Frank: Distribution of snack and trail mix and new grocery store retailer and increased distribution of snack and trail mix current grocery store retailer was tempered by lower consumer demand for snack and trail mix products.

Frank Pellegrino: The 4.3% increase in sales volume for our branded products, which includes Fisher Recipe nuts, Fisher snack nuts, Orchard Valley Harvest, and Southern Style nuts in the consumer distribution channel, was primarily attributable to a 21.8% increase in the sales volume of Orchard Valley Harvest due to enhanced promotional activity at a grocery store retailer and new rotational distribution at a club store customer.

Frank: Mass merchandising.

Frank Pellegrino: 4.3% increase in sales volume for a brand new product, which includes Fisher Recipe Nuts, Fisher Snack Nuts, Orchard Valley Harvest, and Southern Style Nuts, the consumer distribution channel, was primarily attributable to a 21.8% increase in the sales volume of Orchard Valley Harvest. Due to enhanced promotional activity at a grocery store retailer and new rotational distribution at a club store customer.

Frank: The four 3% increase in sales volume for our branded products, which includes Fisher recipe nuts Fisher snack nuts Orchard Valley harvest and southern style nuts consumer distribution channel was primarily attributable to a 21, 8% increase in the sales volume Orchard Valley harvest.

Frank: Due to enhanced promotional activity at grocery store retailer and.

Frank: Our new rotational distributions upstart customer.

Frank Pellegrino: Sales volume decreased 5% in the commercial ingredients channel, primarily due to reduced, distribution caused by competitive pricing pressures at several customers and non-recurring peanut butter sales at a food service distributor that occurred in the fourth quarter of FY2023. Excluding the impact of the late fall acquisition, sales volume decreased 6.3% in the commercial, ingredients distribution channel.

Frank Pellegrino: Sales volume decreased 5% in the grocery service channel, primarily due to reduced distribution caused by competitive pricing pressures at several customers and not recurring peanut burst sales at a food service distributor that occurs in the fourth quarter of fiscal 2023. Excluding the impact of the Lakeville acquisition, sales volume decreased 6.3%; the commercial increased distribution channel. Sales volume increased 16.9% in the contract manufacturing distribution channel due to increased fornola volume process in our Lakeville facility for a major customer in this channel. Excluding the impact of the Lakeville acquisition, sales volume decreased 20.7% in the contract manufacturing distribution channel due to reduced peanut distribution by a major customer caused by soft consumer demand.

Frank Pellegrino: Sales volume decreased 5% in the commercial ingredients channel, primarily due to reduced distribution caused by competitive pricing pressures at several customers and non-recurring peanut butter sales at a food service distributor that occurred in the fourth quarter of fiscal 2023. Excluding the impact of the Lakeville acquisition, sales volume decreased 6.3% from the commercial ingredients distribution channel.

Sales volume decreased 5% and it works on the breach channel primarily due to reduced.

Frank: Distribution.

Frank: That's by competitive pricing pressures at several customers and nonrecurring universe sales a foodservice distributor that occurred in the fourth quarter of fiscal 2023.

Frank: Excluding the impact of the Lakeville acquisition sales volume decreased six 3%.

Frank Pellegrino: Sales volume increased 16.9% in the contract manufacturing distribution channel due to increased granola volume processed in our late fall facility for a major customer in this channel.

Frank: Increased distribution channel.

Frank Pellegrino: Zelle's volume increased 16.9% in the contract manufacturing distribution channel, due to increased granola volume processed in our Lakeville facility for a major customer in this channel.

Frank: Sales volume increased 16, 9% in the contract manufacturing distribution channel.

Frank: Due to increased where NOLA volume processed in our Waco facility for a major customer in this channel.

Frank Pellegrino: Excluding the impact of the LAFO acquisition, sales volume decreased 20.7% in the contract manufacturing distribution channel. Due to reduced peanut distribution by a major customer caused by soft consumer demand.

Frank Pellegrino: Excluding the impact of the late fall acquisition, sales volume decreased 20.7% in the contract manufacturing distribution channel due to reduced peanut distribution by a major customer caused by soft consumer demand.

Frank: Excluding the impact of the Mako acquisition sales volume decreased 27%.

Frank: The factory and distribution channel.

Frank: Due to reduced peanut distribution by a major customer caused by soft consumer demand.

Frank Pellegrino: Additionally, the prior year of the curve of quarter was possibly impacted by a new prior launch as another customer, which did not re-occur in the current quarter. Gross profit for a fourth quarter of the current year decreased 4.7 million, or 8.6%, to 50 million. Excluding the 3.3 million in gross profit related to Lakeville acquisition, gross profit decreased by approximately $8 million due to decreased on prices, reduced sales volume, and product mix manufactured inefficiencies. Gross profit margin decreased to 18.5% of net sales in the current fourth quarter compared to 23.4% in the fourth quarter of fiscal 2023, mainly due to higher net sales base in the Lakeville acquisition.

Frank Pellegrino: Additionally, the prior year of Comparable Quarter was positively impacted by a new product launch at another customer, which did not reoccur in the current quarter.

Frank Pellegrino: Additionally, the prior year comparable quarter was possibly impacted by a new product launch at another customer which did not reoccur in the current quarter.

Frank: The prior year comparable quarter.

Are we impacted by a new product launch at Newark, customer, which did not reoccur in the current quarter.

Frank Pellegrino: Gross profit for a fourth quarter of the current year decreased $4.7 million, or 8.6% to $50 million. Excluding the $3.3 million in gross profit related to Lakewood acquisition, gross profit decreased by approximately $8 million due to decreased selling prices, reduced sales volume, and product mix manufactured in the, Gross profit margin decreased to 18.5% of net sales in the current fourth quarter, compared to 23.4% in the fourth quarter of fiscal 2023.

Frank: Gross profit for fourth quarter of prior year, the current year decreased $4 7 million or eight 6% to $50 million.

Frank Pellegrino: Gross profit for a fourth quarter of the current year decreased 4.7 million or 8.6% to 50 million. Excluding the 3.3 million in gross profit related to late fall acquisition, gross profit decreased by approximately 8 million dollars due to decreased selling prices, reduced sales volume, and product mix manufacturing inefficiencies.

Frank: Yeah.

Frank: Excluding the $3 3 million in gross profit related to Waco acquisition gross profit decreased by approximately $8 million due.

Frank: Due to decreased selling prices reduced sales volume and product mix manufacturing inefficiencies.

Frank Pellegrino: Gross profit margin decreased to 18.5% of net sales in the current fourth quarter compared to 23.4% in the fourth quarter of FY2023, mainly due to higher net sales base in the late fall acquisition. Excluding the late fall acquisition, gross profit margin decreased to 20.7% due to reasons previously mentioned. Total operating expenses in the quarterly comparison increased 2.2 million, of which 1.9 million were directly related to the late fall acquisition.

Frank: Gross profit margin decreased to 18, 5% of net sales in the current quarter compared to 23, 4% in the fourth quarter of fiscal 2023.

Frank Pellegrino: Mainly due to higher cut sales base for Lakegoat.

Frank: Due to higher net sales base.

Frank Pellegrino: Excluding the Lakeville acquisition, gross profit margin decreased to 20.7%, 20.7% due to reasons previously mentioned. Total operating expenses in the quarterly comparison increased to 2.2 million, of which 1.9 million would directly relate to the Lakeville acquisition. Excluding the Lakeville acquisition, total operating expenses increased by $300,000 primarily due to an increase in incentive and equity compensation, which was partially offset by a decrease in advertising expenses. Additionally, the prior comparable quarter was negatively impacted by a one-time impairment of a minority investment, which did not re-occur with the current quarter. Total operating expenses as percentage of net sales decreased to 13.1% from 14.2% to prior year fourth quarter due to a higher net sales base resulting in a liquid acquisition.

Frank: Sure.

Frank Pellegrino: Including the Lakeville acquisition, gross profit margin decreased to 20.7% due to reasons previously stated. Total operating expenses in the Crowley comparison increased $2.2 million, of which $1.9 million were directly related to the Lakeville equity.

Frank: Excluding the <unk> acquisition gross profit margin decreased to 27%.

One 9% due to the reasons previously mentioned.

Frank: Total operating expenses in the prior comparison increased $2 2 million of which $1 9 million directly related to <unk> acquisition.

Frank Pellegrino: Excluding illegal acquisitions, total operating expenses increased by $300,000 primarily due to an increase in incentive and equity compensation, which was partially offset by a decrease in advertising. Additionally, the prior comparable quarter was negatively impacted by a one-time impairment of a minority investment, which did not reoccur at the current time.

Excluding the <unk> acquisition total operating expenses increased by 300000, primarily due to an increase in incentive and equity compensation.

Frank Pellegrino: Excluding the late fall acquisition, total operating expenses increased by 300,000 primarily due to increasing incentive and equity compensation, which was partially offset by a decrease in advertising expenses.

Frank Pellegrino: Additionally, the prior comparable quarter was negatively impacted by a one-time impairment of a minority investment which did not reoccur in the current quarter.

Frank: Which was partially offset by a decrease in advertising expenses.

Frank: Additionally, the prior comparable quarter was negatively impacted by a one time impairment of a minority investment which did not reoccur this quarter.

Frank Pellegrino: Total operating expenses as percentage of net sales decreased at 13.1% from 14.2% the prior, year of fourth quarter due to a higher net sales base resulting from the late fall acquisition.

Frank Pellegrino: Total operating expenses as percents of net sales decreased to 13.1%, from 14.2% the prior year for quarter. Due to a higher net sales base, resulting in a late go ahead.

Frank: Total operating expenses as a percentage of net sales decreased to 13, 1%.

Frank: From 42% in the prior year fourth quarter due to higher net sales base, resulting from the <unk> acquisition.

Frank Pellegrino: Excluding the late fall acquisition, total operating expenses as percentage of net sales, increased to 14.9% from 14.2% due to the reasons previously mentioned and a lower net sales base. Interest expense increased to 500,000 in the fourth quarter of fiscal 2024 from 300,000 in, last year's quarter.

Frank Pellegrino: Excluding a liquid acquisition, total operating expenses percentage of net sales increased to 14.9% from 14.2% due to the reasons previously mentioned and a lower net sales base. Interest expense increased to 500,000 from the fourth quarter of fiscal 2024, from 300,000 in last year's quarter. That income was $10,000,000 per 86 cents per share diluted for a fourth quarter of fiscal 2024 and perred to 14.7 million per $1.26 per diluted share.

Frank Pellegrino: Excluding the late for acquisition, total operating expenses as percentage of net sales increased to 14.9% from 14.2% due to the reasons previously mentioned and the lower net sales, Interest expense increased to $500,000.

Frank: Excluding the Mako acquisition total operating expenses as a percentage of net sales increased to 14, 9% grew 14, 2% due to the reasons previously mentioned and a lower net sales base.

Frank: Interest expense increased to 500000 in the fourth quarter of fiscal 2024 from 300000 in last year's quarter.

Frank Pellegrino: 4th quarter of fiscal 2024 from $300,000 in last year's, Net income was $10 million dollars per 86 cents per share diluted, for their fourth quarter of fiscal 2024, compared to $14.7 million or $1.26 per diluted share.

Frank Pellegrino: Net income was $10 million per 86 cents per share diluted for a fourth quarter of fiscal 2024 compared to $14.7 million or $1.26 per diluted share.

Frank: Net income was $10 million or <unk> 86 per share diluted.

Frank: Third quarter of fiscal 2024, compared to $14 7 million or $1.26 per diluted share.

Frank Pellegrino: Now let's take a look at inventory. The total value of inventory on hand at the end of the current fiscal year increased by $23.6 million, or 13.7%, compared to the total value of inventories at the end of fiscal 2023. The increase in total value of inventories was primarily due to the $21.8 million of additional inventory associated with electoral acquisition. Excluding electoral acquisitions, the total value of total inventories on hand increased $1.8 million, or 1.1%, year-over-year due to higher quantities of in-shell pecans and walnuts and higher commodity acquisition costs for walnuts. This was offset by lower quantities of finished goods, pecan meats, and lower quantities and commodity acquisition costs for peanuts and cashews.

Frank Pellegrino: Now take a look at inventory. The total value of inventory on hand at the end of the current fiscal year increased by 23.6 million per 13.7% per total value of inventory at the end of fiscal 2023. The increase in total value of inventory was primarily due to a 21.8 million additional inventory associated with the liquid acquisition. Excluding the liquid acquisition total value, the value of inventory on hand increased to 1.8 million or 1.1% year over year due to higher quantities of in-shelf heat times in Walnut's higher commodity acquisition costs per watt. This was offset by lower quantities of finished goods and peacock meat, and lower quantities and commodity acquisition costs for peanuts and cashews.

Frank Pellegrino: Now let's take a look at inventory. The total value of inventories on hand in the current fiscal year increased by $23.6 million or 13.7%.

Frank: Now, let's take a look at inventory.

Frank: So our inventory on hand in the current fiscal year increased by $23 6 million or 13, 7%.

Frank Pellegrino: Prepare your total value of inventories at the end of fiscal 2023. The increase in total value of inventories was primarily due to a $21.8 million of additional inventory associated with electrical acquisitions. Excluding the electrical acquisitions, the value of total inventories on hand increased 1.8 million, or 1.1% year-over-year.

Frank: Great.

Frank: At the end of <unk>.

Frank: Fiscal 2023.

Frank: The increase in total value of inventories was primarily due to $21 8 million of additional inventory associated with the Mako acquisition.

Frank: Excluding the electro acquisitions or value.

Frank: Our inventories on hand increased $1 8 million or one 1% year over year.

Frank Pellegrino: Due to higher quantities of in-shell pecans and walnuts, higher commodity acquisition costs per wallet.

Frank: Due to higher kind of in shock pecans and walnuts.

Speaker Change: Acquisition cost per watt.

Frank Pellegrino: This was offset by lower quantities of finished goods.

Speaker Change: This was offset by lower quantities of finished goods.

Frank Pellegrino: Pecan Meats & Lower Quantity & Commodity Acquisition Costs for Peanuts & Cashew, The weighted average cost per pound of raw nut and dried fruit input stock on hand, excluding the impact of the LACO acquisition, decreased 9.2% year-over-year, mainly due to higher quantities of in-shell pecans and walnuts on hand.

Speaker Change: The economy.

Speaker Change: Our quantities and commodity acquisition costs for Peanuts and cashews.

Frank Pellegrino: The weighted average cost per pound of raw nut and dried fruit input stock on hand, excluding the impact of the electoral acquisition, decreased 9.2% year-over-year, mainly due to higher quantities of in-shell pecans and walnuts on hand.

Frank Pellegrino: The weighted average cost per pound of raw nut and dried fruit input stock on hand, excluding the impact of the late-go acquisition, decreased 9.2% year over year, mainly due to higher quantities of in-shelf heat times in Walnut's on hand. Moving on to year-to-date results, fiscal 2024 net sales increased 6.7% to 1.07 billion dollars compared to fiscal 2023 net sales of 999.7 million, primarily due to late-go acquisition. Excluding the impact of the late-go acquisition, net sales decreased 5.3%, the 946.9 million primarily attributed to a 3.3% decline sales volume and a 2% decrease in the weighted average time price per pound.

Speaker Change: The weighted average cost per pound of raw nut and dried fruit input stocks on hand, excluding the impact.

Speaker Change: Our acquisition decreased 2% year over year, mainly due to higher quantities of HR pecans and walnuts.

Frank Pellegrino: Moving on to year-to-date results.

Frank Pellegrino: Moving on to year-to-date results. Fiscal 2024 net sales increased 6.7% to $1.07B compared to fiscal 2023 net sales of $999.7B. Primarily due to Leko et al.

Speaker Change: Yes.

Speaker Change: Moving onto year to date results.

Frank Pellegrino: Fiscal 2024 net sales increased 6.7% to $1.07 billion, compared to fiscal 2023 net sales of $999.7 million, primarily due to electoral acquisition.

Speaker Change: Fiscal 2024 net sales increased six 7%.

Speaker Change: So $1.07 billion compared to fiscal 2023.

Speaker Change: $999 $7 million.

Speaker Change: Primarily due to lower acquisition.

Frank Pellegrino: Excluding the impact of the electoral acquisition, net sales decreased 5.3% to $946.9 million, primarily attributable to a 3.3% decline in sales volume and a 2% decrease in the weighted average selling price per pound. Sales volume increased 12.3%, primarily due to electoral acquisition. Excluding the impact of electoral acquisition, sales volume decreased 3.3%, due to sales volume decreases in all three distribution channels.

Frank Pellegrino: Excluding the impact of the Lakewood Acquisition, net sales decreased 5.3%. The $946.9 million is primarily attributable to a 3.3% decline in sales volume and a 2% decrease in the weighted average selling price per pound.

Speaker Change: Excluding the impact of the Mako acquisition net sales decreased five 3%.

Speaker Change: $46 9 million, primarily attributable to a three 3% decline in sales volume and a two.

Speaker Change: A 2% decrease the weighted average selling price per pound.

Frank Pellegrino: Sales volume increased 12.3%, primarily due to late-go acquisition. Excluding the impact of late-go acquisition, sales volume decreased 3.3%. The sales volume decreases in all three distribution channels. Gross profits per current fiscal year increased 1.2%, 214.1 million, and gross profit margin decreased from 21.2%, the 20.1% of net sales, primarily due to late-go acquisition, which is partly offset by lower commodity acquisition costs for all major treatments. Total operating expenses for fiscal 2024 increased 7.5 million to 129 million, primarily due to increases in incentive compensation, incremental direct operating expenses associated with the increased advertising expense and charitable food donations.

Frank Pellegrino: Sales volume increased 12.3% primarily due to LACO acquisition. Excluding the impact of molecular acquisition, sales volume decreased 3.3%, meaning the sales volume decreases in all three distribution categories.

Speaker Change: Sales volume increased 12, 3%, primarily due to <unk> acquisition.

Excluding the impact of Allegro acquisition sales volume decreased three 3%.

Speaker Change: So I am decreases in all three distribution channels.

Frank Pellegrino: Gross profit for the current fiscal year increased 1.2% to $214.1 million, and gross profit margin decreased from 21.2% to 20.1% of net sales, primarily due to electoral acquisition, which is partially offset by lower commodity acquisition costs for all major tree nuts.

Frank Pellegrino: Gross profit for current fiscal year increased 1.2%. 214.1 million and growth profit margin decreased from 21.2% 20.1% and that's sales, primarily due to Lakewood Acquisition, is partially offset by lower commodity acquisition costs for all majors.

Speaker Change: Gross profit for current fiscal year increased one 2% to $214 1 million and gross profit margin decreased from 21, 2%.

Speaker Change: 41% of them necessarily sells primarily to the Allegro acquisition.

Speaker Change: Partially offset by lower commodity acquisition costs ramaker treatments.

Frank Pellegrino: Total operating expenses for fiscal 2024 increased $7.5 million to $129 million, primarily due to increases in incentive compensation, incremental direct operating expenses associated with electoral acquisition, increased advertising expense, and charitable food donations. These increases were partially offset by the one-time bargain purchase gains from electoral acquisition and a decrease in freight expense.

Frank Pellegrino: Total operating expenses for fiscal 2024 increased $7.5 million to $129 million, primarily due to increases in incentive compensation. Incremental Direct Operating Expenses Associated with Delayful Acquisition, increased advertising Insurable Food Donations, These increases were partially offset by the one-time bargain purchase gain from the Lakeville acquisition and a decrease in freight acquisition.

Speaker Change: Total operating expenses for fiscal 2024 decreased $12 5 million to $129 million, primarily due to increases in incentive compensation.

Speaker Change: Incremental direct operating expenses associated with the <unk> acquisition.

Speaker Change: Advertising expense.

Frank Pellegrino: These increases were perfectly offset by the one-time variant purchase gains in a vehicle acquisition and a decrease in freight expenses. Then they come from fiscal 2024 with $60.2 million or $5.15 per diluted share compared to $62.9 million or $5.40 per diluted share.

Speaker Change: Sure.

Speaker Change: These increases were partially offset by the one time bargain purchase gains relate to acquisition and a decrease in freight expense.

Frank Pellegrino: Net income for fiscal 2024 was $60.2 million, or $5.15 per diluted share, compared to $62.9 million, or $5.40 per diluted share.

Speaker Change: Net income for fiscal 2024 was $60 2 million or $5 15 per diluted share compared to $62 9 million.

Hours and 40.

Jeffrey Sanfilippo: I would now turn to call back over to Jeffrey to provide additional comments and our performance for the current order in fiscal year.

Jeffrey Sanfilippo: I will now turn the call back over to Jeffrey to provide additional comments on our performance for the current quarter and fiscal year.

Speaker Change: Per diluted share.

Frank Pellegrino: I will now turn the call back over to Jeffrey to provide additional comments on our performance for the current quarter and fiscal year.

Speaker Change: I will now turn the call back over to Geoffrey will provide additional comments on our performance for the current quarter and fiscal year.

Jeffrey Sanfilippo: Thanks, Frank, for the financial updates.

Jeffrey Sanfilippo: Thanks, Frank.

Jeffrey Sanfilippo: Thanks, Frank, for the financial updates.

Geoffrey: Thanks Frank.

Jeffrey Sanfilippo: Now let's shift to consumption activity and category updates.

Jeffrey Sanfilippo: Now let's shift to consumption activity and category updates. I will share some category and grant results with you from the quarter. As always, the market information I'll be referring to is your content reported data, and for today it is for the period ending June 16, 2024. We refer to Q4 and referring to 13 weeks of the quarter ending June 16, 2024. There are references to changes in volume or price versus the corresponding period. We look at the category of circumnaised total US definition, which includes food, drug, mass, Walmart, military, and other outlets unless otherwise specified.

Jeffrey Sanfilippo: Now let's shift to Consumption Activity and Category Update.

Geoffrey: Some financial updates.

Now, let's shift to consumption activity in category updates I will share some category and brand results with Houston in the quarter.

Jeffrey Sanfilippo: I will share some category and brand results with you from the quarter.

Jeffrey Sanfilippo: I will share some category and brand results with you for the quarter.

Jeffrey Sanfilippo: As always, the market information I'll be referring to is Circona reported data, and for today it is for the period ending June 16th, 2024.

Jeffrey Sanfilippo: As always, the market information I'll be referring to is Zirconia reported data, and for today it is for the period ending June 16th, 2024.

Speaker Change: As always the market information I'll be referring to is your kana reported data and for today. It is for the period ending June 16th 2024.

Jeffrey Sanfilippo: I refer to Q4, I'm referring to 13 weeks of the quarter ending June 16th, 2024. References to changes in volume or price are versus the corresponding period one year ago. We look at the category of Circona's total U.S, definition, which includes food, drug, mass, Walmart, military, and other outlets, unless otherwise specified. When we discuss pricing, we are referring to the average price per pound.

Jeffrey Sanfilippo: I refer to Q4, I'm referring to 13 weeks of the quarter, ending June 16th, 2020. References to changes in volume or price are versus the corresponding period when they're, We look at the category of Circana's total U.S. definition, which includes food, drug, mass, Walmart, military, and other outlets, unless otherwise specified. When we discuss pricing, we are referring to the average price per pound.

I refer to Q4 or referring to 13 weeks of the quarter ending June 16th 2024.

Speaker Change: References to changes in volume or price are versus the corresponding period, one year ago.

We look at the category. That's her countless total U S definition, which includes food drug mass Wal Mart military and other outlets unless otherwise specified.

Jeffrey Sanfilippo: And we discuss pricing with a refrain to the average price per pound. Breakouts of the recipe, snack, and produce nuts subcategories are based on our custom definitions developed in conjunction with Circumna. The snack bar category is the syndicated view as defined by Circumna. The term velocity refers to the sales per point of distribution. In the last quarter, we started to see stabilization in the broader snack category. The snack aisle at defined by circumna declined eight tenths of a point in pounds and three tenths of a point in dollars. This is an improvement versus the trends we were seeing in Q3.

Speaker Change: When we discuss pricing we are referring to the average price per pound.

Jeffrey Sanfilippo: Breakouts of the recipe, snack, and produce nuts subcategories are based on our custom, definitions developed in conjunction with Circona.

Jeffrey Sanfilippo: Breakouts of the Recipe, Snack, and Produce Nuts subcategories are based on our custom definitions developed in conjunction with SIRCANA.

Speaker Change: Breakouts of the recipe snack and produce nut subcategories are based on our custom definitions developed in conjunction with your comment.

Jeffrey Sanfilippo: The snack bar category is the syndicated view as defined by Circona.

Jeffrey Sanfilippo: The Snack Bar category is the syndicated view as defined by Cirque du Soleil.

Speaker Change: The snack bar category is the syndicated view as defined by SAR Kenya.

Jeffrey Sanfilippo: The term velocity refers to the sales per point of distribution.

Speaker Change: The term velocity refers to the sales per point of distribution.

Jeffrey Sanfilippo: In the last quarter, we started to see stabilization in the broader snack category.

Jeffrey Sanfilippo: In the last quarter, we started to see stabilization in the broader snack category. The snack aisle, as defined by Circona, declined eight-tenths of a point in pounds and three-tenths of a point in dollars. This is an improvement versus the trends we were seeing in Q3.

Speaker Change: And the last quarter, we started to see stabilization in the broader snack category snack aisle as defined by circa decline eight tenths of a point in pounds and three tenths of a point in dollars.

Jeffrey Sanfilippo: NACAO, as defined by Cercana, declined 0.8 in pounds and 0.3 in dollars. This is an improvement versus the trends we were seeing in Q3.

Jeffrey Sanfilippo: The total nut and trail mix category, was down two percent in dollars and down one percent in pound volume in Q4. This is better performance than we saw last quarter. Nut and trail mix prices have moderated, and price per pound declined one percent versus the prior year.

Speaker Change: This is an improvement versus the trends we were seeing in Q3.

Jeffrey Sanfilippo: The total nut and trail mix category was down two percent in dollars and down one percent in pound volume in Q4. This is better performance than we saw last quarter. Nut and trail mix prices have moderated, and price per pound declined one percent versus the prior year. We are still seeing consumers trade down to less expensive snacks; our sizes and nut types and deal seek as broader food and essential prices remain elevated.

Jeffrey Sanfilippo: The total mod and trail mix category was down 2% in dollars and down 1% in pound volume in Q4.

Speaker Change: The total nut and trail mix category was down 2% in dollars and down 1% in pound volume in Q4.

Jeffrey Sanfilippo: This is better performance than we saw last quarter. Sutton Trail Mix prices have moderated and price per pound declined 1% versus the prior year.

Speaker Change: This is better performance than we saw last quarter.

Speaker Change: <unk> prices have moderated and price per pound declined 1% versus the prior year.

Jeffrey Sanfilippo: We are still seeing consumers trade down to less expensive snacks, pack sizes, and nut types, and deal seek as broader food and essential prices remain elevated.

Speaker Change: We are still seeing consumers trade down to less expensive snacks pack sizes and types and DLC as broader food essential prices remain elevated.

Jeffrey Sanfilippo: We are still seeing consumers trade down to less expensive snacks, pack sizes, and nut types, and deal seek as broader food and essential prices remain elevated.

Jeffrey Sanfilippo: Now I will cover each subcategory in more depth, starting with recipe nuts. The recipe nuts subcategory was down five percent in dollars and four percent in pound sales. This is a decline in performance versus what we saw in Q3. Pricing is stable with both walnuts and pecans, the bulk of this subcategory, being flat to slightly down on a price per pound basis.

Jeffrey Sanfilippo: Now I will cover each subcategory in more depth, starting with RecipeNet.

Jeffrey Sanfilippo: Now we'll cover each subcategory in more depth, starting with recipe nuts. The recipe nuts subcategory was down five percent in dollars and four percent in pound sales. This is a decline in performance versus what we saw in Q3. Pricing is stable, with both walnuts and pecans, the bulk of this subcategory, being flat to slightly down on a price per pound basis. Our Fisher brand declined in Q4, driven mainly by velocity performance in the grocery channel. Fisher declined eleven percent in dollars and nine percent in pounds. I'm par with the performance we saw in Q3. The brand was flat in the mass channel.

Speaker Change: Now I will cover each subcategory in more depth, starting with recipe nuts.

Jeffrey Sanfilippo: The Recipe Nuts subcategory was down 5% in dollars and 4% in pound sales. This is a decline in performance versus what we saw in Q3. Pricing is stable with both walnuts and pecans, the bulk of this subcategory, being flat to slightly down and a price per pound basis.

Speaker Change: The recipe nut category was down 5% in dollars and 4% in pound sales.

Speaker Change: This is a decline in performance versus what we saw in Q3 right.

Speaker Change: Pricing is stable with both walnuts and pecans the bulk of this subcategory in flat to slightly down in a price per pound basis.

Jeffrey Sanfilippo: Our Fisher brand, declining Q4, driven mainly by velocity performance in the grocery chain. Fisher declined 11% in dollars and 9% in pounds, on par with the performance we saw in Q3. The brand was flat in the mass chat.

Jeffrey Sanfilippo: Our, Fisher brand declined in Q4, driven mainly by velocity performance in the grocery channel. Fisher declined 11 percent in dollars and nine percent in pounds, on par with the performance, we saw in Q3.

Speaker Change: Our Fisher brand declined in Q4, driven mainly by velocity performance in the grocery channel Fisher.

Speaker Change: Fisher declined 11% in dollars and 9% in pounds on par with the performance we saw in Q3.

Jeffrey Sanfilippo: The brand was flat in the mass channel. Fisher is still the branded recipe nut leader, and we are actively working on ways to engage consumers with the right price pack architecture and promotions as we plan for this holiday season.

Speaker Change: The brand was flat in the mass channel Mr.

Jeffrey Sanfilippo: Fisher is still the branded recipe nut leader, and we are actively working on ways to engage consumers with the right price pack architecture and promotions as we plan for this holiday season.

Jeffrey Sanfilippo: This year is still the branded recipe, not leader, and we are actively working on ways to engage consumers with the right price pack architecture and promotions as we plan for this holiday season.

Mr: Mr is still the branded recipe nut leader and we are actively working on ways to engage consumers with the right price pack architecture and promotions as we plan for this holiday season.

Jeffrey Sanfilippo: Now let me turn to the snack subcategory.

Jeffrey Sanfilippo: Now let me turn to the SNAC subcategories. In Q4, the SNAC category was down 3% in dollar sales and down 2% in pound sales. This is an improvement versus the performance we saw in Q3. Pricing continues to stabilize; the prices flat versus a year ago. This year, SNAC performs worse than the subcategory on 29% in dollars and 33% in pounds. This continues to be driven by significant distribution losses. We are actively working on new promotional plans and new products that give the consumers new exciting products with the value they are looking for. Our available SNAC must are performing consistent with the subcategory and a 4% in dollars and down 1% in pounds.

Jeffrey Sanfilippo: Now let me turn to the snack subcategory.

Jeffrey Sanfilippo: In Q4, the snack category was down three percent in dollar sales and down two percent in pound sales. This is an improvement versus the performance we saw in Q3.

Mr: Now, let me turn to the snack subcategory in.

Jeffrey Sanfilippo: In Q4, the snack category was down 3% in dollar sales and down 2% in pounds. This is an improvement versus the performance we saw in Q3.

Mr: In Q4, the snack category was down 3% in dollar sales and down 2% in pellet sales. This is an improvement versus the performance we saw in Q3.

Jeffrey Sanfilippo: Pricing continues to stabilize with prices flat versus a year ago.

Mr: Pricing continues to stabilize with prices flat versus a year ago.

Jeffrey Sanfilippo: Mr.

Mr: Fisher snack performed worse than the subcategory on 29% in dollars and 33% in pounds.

Jeffrey Sanfilippo: Fisher snack performed worse in the subcategory, down 29 percent in dollars and 33 percent in pounds. This continues to be driven by significant distribution losses.

Jeffrey Sanfilippo: Snag performed worst in the subcategory on 29% in dollars and 33% in pounds. This continues to be driven by significant distribution loss.

Jeffrey Sanfilippo: We're actively working on new promotional plans and new products that give the consumers new exciting products with the value they are looking for.

Mr: This continues to be driven by significant distribution losses.

Jeffrey Sanfilippo: We are actively working on new promotional plans and new products that give the consumers new exciting products with the value they are looking for.

Speaker Change: We're actively working on new promotional plans and new products that give the consumers new exciting products with the value. They are looking for.

Jeffrey Sanfilippo: Bargain Label Snack Nuts are performing consistent with the subcategory of 4% in dollars and down 1% in pockets.

Jeffrey Sanfilippo: Bargain label snack nuts are performing consistent with the subcategory, down four percent in dollars and down one percent in pounds.

Speaker Change: Org enables snack nuts are performing consistent with the subcategory and.

Speaker Change: 4% in dollars is down 1% in pounds.

Jeffrey Sanfilippo: The Trail and Snack Mix subcategory was down 2% in dollars and down 2% in pounds in Q4, an improvement versus last quarter.

Jeffrey Sanfilippo: The trademark SNAC mixed subcategory was down 2% in dollars and down 2% in pounds in Q4, an improvement versus last quarter. The prices of trail mixes were flat versus a year ago. Our southern style NAC ran grew 2% in dollars and 6% in pounds, driven by strong velocity performance in mass and club. The brands, the share leader and trail mix, performed slightly worse than the subcategory and 3% in dollars and pounds, driven by poor performance in the mass channel. Our last subcategory produce nuts declined 1% in dollars and grew 1% in pound by M&Q4, better than the performance we saw in Q3.

Jeffrey Sanfilippo: The Trail & Snack Mix subcategory was down 2% in dollars and down 2% in pounds in Q4.

Speaker Change: The trail and snack mixes up category was down 2% in dollars and down 2% in pounds in Q4.

Jeffrey Sanfilippo: Improvement was this last quarter.

Speaker Change: <unk> versus last quarter.

Jeffrey Sanfilippo: Prices of trail mixes were flat versus a year ago.

Jeffrey Sanfilippo: Process of trail mixes were flat versus a year ago.

Speaker Change: Prices of trail mixes were flat versus a year ago.

Jeffrey Sanfilippo: Our Southern Style Nut brand grew 2% in dollars and 6% in pounds, driven by strong velocity performance in mass and club.

Jeffrey Sanfilippo: Our Southern Style Nut Brand grew 2% in dollars and 6% in pounds, driven by strong velocity performance in mass and club.

Speaker Change: Our southern style nuts brand grew 2% in dollars and 6% in pounds driven by strong velocity performance mass and club.

Jeffrey Sanfilippo: Private brands, the Share Leader and Trail Mix, performed slightly worse than the subcategory, down 3% in dollars and pounds, driven by poor performance in the mass channel.

Jeffrey Sanfilippo: Private brands, the share leader and trail mix, perform slightly worse than the subcategory, down 3% in dollars and pounds, driven by poor performance in the mass channel.

Speaker Change: Private brands the share leader in trail mix performed slightly worse than the subcategory of 3% in dollars and pounds driven by poor performance in the mass channel.

Jeffrey Sanfilippo: Our last subcategory, Produce Nuts, declined 1% in dollars and grew 1% in pound volume in Q4, better than the performance we saw in Q3. Our Produce Nut brand, Orchard Valley Harvest, performed better than the subcategory, up 10% in dollar sales and 16% in pound sales, driven by velocity and distribution gains in the grocery channel.

Jeffrey Sanfilippo: Our last subcategory, Produce Nuts, declined 1% in dollars and grew 1% in pound volume in Q4, better than the performance we saw in Q3. Our produce and upbrand Orchard Valley Harvest performed better than the subcategory, up 10% in dollar sales and 16% in pound sales, driven by velocity and distribution gains in the grocery channel.

Speaker Change: Our last sub category produce nuts declined 1% in dollars and grew 1% in pound volume in Q4 better than the performance we saw in Q3.

Jeffrey Sanfilippo: Our produce nut brand, Orchard Light Harvest, performed better than the subcategory of 10% in dollars sales and 16% in pounds sales, driven by velocity and distribution gains in the grocery channel. We are entering year 2 of our relaunch and are excited to introduce new products and pack sizes to continue momentum on this brand.

Speaker Change: Our produced nut brand Orchard Valley harvest performed better than the sub category up 10% in dollar sales and 16% in pound sales driven by velocity and distribution gains in the grocery channel.

Jeffrey Sanfilippo: We are entering year two of our relaunch and are excited to introduce new products and pack sizes to continue momentum on this brand.

Speaker Change: We are entering year two of our relaunch and are excited to introduce new products and pack sizes to continue momentum on this brand.

Jeffrey Sanfilippo: Now we will switch to the Snack Bar category. In Q4, the Snack Bar category declined 6% in pounds and 4% in dollars. We are continuing to see the effect of a total recall of a major branded Snack Bar player earlier this year. Snack Bar pricing increased by 2% in Q4. Private label bars continued to grow, 14% in dollars and 12% in pounds. Private label bars continued to expand in stores, picking up 12% more in TDP distribution, while prices rose 2%.

Jeffrey Sanfilippo: Now we will switch to the SNAC bar category. In Q4, the SNAC bar category declined 6% in pounds and 4% in dollars. We are continuing to see the effect of a total recall of a major branded SNAC bar player earlier this year. SNAC bar pricing increased by 2% in Q4. Private label bars continued to grow 14% in dollars and 12% in pounds. Private label bars continue to expand in stores, picking up 12% more in TDP distribution, while prices rose 2%. We continue to see positive momentum in private label in this category, with dollars sharing the quarter of 1.2 points versus last year.

Jeffrey Sanfilippo: Now we will switch to the snack bar category. The snack bar category declined 6% in pounds and 4% in dollars. We are continuing to see the effect of a total recall of a major branded snack bar player earlier this year. Snack bar pricing increased by 2% in Q4.

Speaker Change: Now I'll switch to the snack bar category.

Speaker Change: Q4, the snack bar category declined 6% in pounds and 4% in dollars.

We are continuing to see the effect of the total recall the major branded snack bar player earlier this year.

Snack bar pricing increased by 2% in Q4.

Jeffrey Sanfilippo: Private label bars continued to grow 14% in dollars and 12% in pounds. Private label bars continue to expand in stores, picking up 12% more in TDP distribution, while prices rose 2%.

Private label bars continued to grow 14% in dollars and 12% in pounds.

Private label bars continued to expand in stores picking up 12% more and TDP distribution prices rose 2%.

Jeffrey Sanfilippo: We continue to see positive momentum in private label in this category, with dollar share in the quarter up 1.2 points versus last year.

Jeffrey Sanfilippo: We continue to see positive momentum in private label in this category with dollar share in the quarter up 1.2 points versus last year.

Speaker Change: We continue to see positive momentum in private label in this category with dollar share in the quarter up 1.2 points versus last year.

Jeffrey Sanfilippo: In closing, we see great opportunities to build our bar business and enter new Snack Bar segments with innovative products.

Jeffrey Sanfilippo: In closing, we see great opportunities to build our bar business and enter new SNAC bar seconds in innovative products.

Jeffrey Sanfilippo: In closing, we see great opportunities to build our bar business and enter new snack bar segments with innovative products.

In closing <unk>.

Speaker Change: See great opportunities to build our bar business and enter new snack bar segment with innovative products.

Jeffrey Sanfilippo: Our Fisher Recipe portfolio, the number one brand in the recipe category, is well positioned for a successful holiday season coming up in Q2.

Jeffrey Sanfilippo: Our Fisher recipe portfolio, the number one brand in the recipe category, is well-positioned for a successful holiday season coming up in Q2. We do continue to face challenges in the future on a macro level, which include declining consumption trends in the SNAC category. Also, higher costs for chocolate and cashew nuts due to supply and demand. However, our sales and marketing R&D and procurement teams are working with a sense of urgency to find solutions to overcome. In fiscal 23, the company achieved five consecutive years of record earnings. While we did not continue that performance trend this year, our teams accomplished so much in fiscal 2024 that will position JBSS for strong growth and profitability in the future.

Jeffrey Sanfilippo: Fisher Recipe Portfolio, the number one brand in the recipe category, is well positioned for a successful holiday season coming up in Q2.

Speaker Change: Fisher recipe recipe portfolio the number one brand in the recipe category is well positioned for a successful holiday season coming up in Q2.

Jeffrey Sanfilippo: We do continue to face challenges in the future on a macro level, which includes declining consumption trends in the Snack category.

Jeffrey Sanfilippo: We do continue to face challenges in the future on a macro level, which includes declining consumption trends in the snack category.

We do continue to face challenges in the future on a macro level, which include declining consumption trends in the snack category.

Jeffrey Sanfilippo: Also, higher costs for chocolate and cashew nuts due to supply and demand.

Speaker Change: So higher cost for chocolate in cashew nuts, due to supply and demand.

Jeffrey Sanfilippo: However, our sales and marketing, R&D, and procurement teams are working with a sense of urgency to find solutions to overcome these headwinds.

Speaker Change: However, our sales and marketing R&D and procurement teams are working with a sense of urgency to find solutions to overcome these headwinds.

Jeffrey Sanfilippo: Through Fiscal 23, the company achieved five consecutive years of record earnings.

Jeffrey Sanfilippo: Through fiscal 23, the company achieved five consecutive years of record earnings.

Speaker Change: Through fiscal 'twenty three the company achieved five consecutive years of record earnings.

Jeffrey Sanfilippo: While we did not continue that performance trend this year, our teams accomplished so much in Fiscal 2024 that will position JBSS for strong growth and profitability in the future. These results demonstrate the underlying strength and resilience of our company. These achievements are also a testament to the fortitude of our business model, the commitment of our people, and the mutual trust and depth of our customer and supplier partnerships.

Jeffrey Sanfilippo: While we did not continue that performance trend this year, our teams accomplished so much in fiscal 2024 that will position JBSS for strong growth and profitability in the future.

Speaker Change: While we did not continue that performance trend. This year our teams accomplished so much in fiscal 'twenty 'twenty four that will position <unk> to be SaaS for strong growth and profitability in the future.

Operator: [inaudible] ¶ ¶ ¶[inaudible] ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶[inaudible] ¶ ¶ ¶ ¶ ¶ ¶[inaudible] ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶[inaudible] ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶[inaudible] Our fourth quarter results, although strong, were impacted by investments we made with our customers where we anticipate will deliver future benefits to category growth and increased sales volume.

Jeffrey Sanfilippo: These results demonstrate the underlying strength and resilience of our company. These achievements are also a testament to the fortitude of our business model, the commitment of our people, and the mutual trust and depth of our customer and supplier partnerships. We are executing our goals strategies, implementing continuous improvement projects throughout the company to optimize our cost structure, and we continue to invest in our brands and processes to better serve our customers and consumers and create value for our shareholders.

Speaker Change: These results demonstrate the underlying strength and resilience of our company.

Speaker Change: <unk> is also a testament to the fortitude of our business model the commitment of our people and our mutual trust and gaps of our customer and supplier partnerships.

Jeffrey Sanfilippo: We are executing our goal strategies, implementing continuous improvement projects throughout the company to optimize our cost structure.

Operator: ¶¶ In 2024, fourth quarter earnings conference call. Thank you for joining us.

Jeffrey Sanfilippo: We are executing our goal strategies, implementing continuous improvement projects throughout the company to optimize our cost structure.

Speaker Change: We are executing our growth strategies implementing continuous improvement projects throughout the company to optimize our cost structure and we continue to invest in our brands and processes to better serve our customers and consumers and create value for our shareholders.

Operator: And the call with me today is Frank Pellegrino, our COO & Jasper Sanfilippo, our COO. We may make some forward-looking statements today. These statements are based on our current expectations and they involve certain risks and uncertainties. The factors that could negatively impact results are explained in the various SEC filings that we have made including forms 10K and 10Q. We encourage you to refer to the filings to learn more about these risks and uncertainties that are inherent in our business.

Jeffrey Sanfilippo: We continue to invest in our brands and processes to better serve our customers and consumers and create value for our shareholders.

Jeffrey Sanfilippo: We appreciate your participation in the call and thank you for your interest in our company.

Jeffrey Sanfilippo: We appreciate your participation in the calling. Thank you for your interest in our company.

Jeffrey Sanfilippo: We appreciate your participation in the call and thank you for your interest in our company.

Speaker Change: We appreciate your participation in the call and thank you for your interest in our company.

Jeffrey Sanfilippo: I will now open the call to questions.

Operator: I will now open the call to questions. Thank you.

Operator: I will now open the call to questions.

Speaker Change: I will now open the call to questions.

Operator: Thank you.

Operator: At this time, we'll conduct the question-and-answer session. To ask a question, you'll need to press door 1-100 telephone and wait for your name to be announced. To withdraw your question, please press Door 1-1 again. Please stand by where we compiled the Q&A roster. Again, as a reminder to ask a question, you'll need to press Door 1-1 or your telephone. I'm showing no questions at this time.

Thank you at this time, we will conduct a question and answer session to ask a question you need to press star one wondering if telephone and wait for your name to be announced to ensure your question. Please press star one again please.

Operator: At this time, we will conduct the question and answer session.

Jeffrey Sanfilippo: I am proud to report a successful and historic fiscal 2024 as we exceeded 1 billion in sales for the first time in our company's history. We also successfully executed a key component of our strategic plan by further diversifying our product offerings through the acquisition, integration and optimization of our Lakeville Bar Facility and Operations. We rate our annual dividend by 6.3% to 85% per share and supplemented our annual dividend with an additional special dividend of $1.25 per share, both of which will be paid on September 11th, 2024.

Speaker Change: Please standby, while we compile the Q&A roster.

Operator: At this time, we will conduct a question and answer session.

Operator: To ask a question, you'll need to press star 1-1 on your telephone and wait for your name to be announced.

Operator: To ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced.

Operator: To withdraw your question, please press star 11 again.

Speaker Change: Again as a reminder to ask a question you will need to press star one on your telephone.

Operator: To withdraw your question, please press star 1-1 again.

Operator: Please stand by while we compile the Q&A roster.

Operator: Again, as a reminder to ask a question, you'll need to press star 1-1 on your telephone.

Operator: Again, as a reminder, to ask a question, you will need to press star 1-1 on your telephone.

Operator: I am showing no questions at this time.

Operator: I'm showing no questions at this time.

Speaker Change: I'm showing no questions at this time I would now like to turn it back to Geoffrey for closing remarks.

Operator: I would not like to turn it back to Jeffy for closing remarks. We'd like to thank you for participating in our earnings call today.

Jeffrey Sanfilippo: I would now like to turn it back to Jeffrey for closing remarks.

Jeffrey Sanfilippo: We would like to thank you for participating in our earnings call today.

Jeffrey Sanfilippo: We'd like to thank you for participating in our earnings call today.

Speaker Change: We'd like to thank you for participating in our earnings call today.

Jeffrey Sanfilippo: Have a great day.

Operator: Have a great day. Thank you.

Jeffrey Sanfilippo: Have a great day.

Operator: Thank you.

Geoffrey: Have a great day. Thank you.

Operator: This concludes the Participatory's conference.

Operator: This concludes the participation in today's conference. You may now disconnect.

Speaker Change: This concludes the participation today's conference you may now disconnect.

Operator: You may now disconnect.

Jeffrey Sanfilippo: These results were due to our team's unyielding perseverance and leadership as we navigated through a challenging operating environment in fiscal 2024. Additionally, we recognize and rewarded our talented team members who are outstanding contributions in executing our strategic plan. I am so proud of our associates across the company who work hard on expanding our product portfolio. Their dedication to quality, service and innovation in their commitment to our customers and consumers is remarkable.

Geoffrey: Okay.

Speaker Change: You know.

Speaker Change: Okay.

Speaker Change: [music].

Jeffrey Sanfilippo: Our snack and nutrition by our offering generated approximately $131 million in that sale for the fiscal year, which $120 million was related to the Lakeville acquisition. In addition, we made substantial progress in optimizing the operations in Lakeville ahead of schedule and are excited about the expected impact it will have in our operating results in fiscal 2025 and beyond. Through the hard work of our team, our net sales from Lakeville operations were at the top end of our original range and delusion per share from the Lakeville acquisition. In the last, and for the fiscal year was approximately $0.17 per share, which was significantly better than our original expected per share delusion of $80 to $0.80 to $1.

Speaker Change: Yes.

Speaker Change: [music].

Jeffrey Sanfilippo: Looking ahead for fiscal 25, we are focused on accelerating our volume growth by expanding on the success of our private brand, Garport Folio.

Speaker Change: Okay.

Speaker Change: [music].

Jeffrey Sanfilippo: Rebuilding our nut and trail business through price pack architecture and innovation and expanding our manufacturing capabilities. We recently released a new 400,000 square foot warehouse in Huntly Illinois just a few miles from our Elgin headquarters. We plan to move our warehouse operations to that facility which will free up about 250,000 square feet of space to expand production, bars and nut and trail mix packaging.

Operator: Hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey, hey

Jeffrey Sanfilippo: Rebuilding our nut and trail business through price, pack architecture, and innovation, and expanding our manufacturing capabilities. We recently released a new 400,000 square foot warehouse in Huntley, Illinois, just a few miles from our Elgin headquarters. We plan to move our warehouse operations to that facility, which will free up about 250,000 square feet of space to expand production and bars and nut and trail mix packaging.

Jeffrey Sanfilippo: We are confident we can continue to deliver strong operating results and create long-term volume for shareholders through the execution of our long-range plan to become a $2 billion business.

Speaker Change: Okay.

Speaker Change: [music].

Jeffrey Sanfilippo: We are nuts about creating real food that brings joy, nourishes people and protects the planet and JVSS is executing on that mission.

Jeffrey Sanfilippo: I'll now turn the call over to Frank to discuss our financial performance.

Jeffrey Sanfilippo: I'll now turn the call over to Frank to discuss our financial components. Thank you, Jeffrey.

So.

Frank Pellegrino: Thank you, Jeffrey, starting with the income statement.

Frank Pellegrino: Starting with the income statement. Net sales for the fourth quarter of fiscal 2024 increased 15.1%, 269.6 million incurred net sales of 234.2 million for the fourth quarter of fiscal 2023. Net sales for the current fourth quarter included about 24.2 million of net sales in the Lakeville acquisition. Excluding the Lakeville acquisition, net sales decreased 8.9 million per 3.8%. The client was due to a 1.9% decrease in sales volume, which is defined as pound-salt-to-customers combined where a 1.9% decrease in the weighted average sales price per pound.

Speaker Change:

Frank Pellegrino: Net sales for a 4-quarter of fiscal 2024 increased 15.1% to 269.6 million incurred net sales of 234.2 million for a 4-quarter of fiscal 2023. Net sales for a current 4-quarter included approximately 44.2 million of net sales in a late-go acquisition. Excluding a late-go acquisition net sales decreased 8.9 million per 3.8%.

Frank Pellegrino: The client was due to a 1.9% decrease in sales volume.

Frank Pellegrino: This is defined as pound-salt-to-customers combined with a 1.9% decrease in the weighted average sales price profile. The decrease in the weighted average selling price primarily resulted from lower selling prices for all major nut types due to competitive pricing pressures and strategic pricing decisions.

Frank Pellegrino: The decrease in the weighted average selling price primarily resulted from lower selling prices for all major nut types, due to competitive pricing pressures and strategic pricing decisions. Sales volume declined for peanuts, almonds, beef nons, and walnuts, which was partially offset by sales volume increases for cashews, and net entrails in the fourth quarter. Sales volume declined for a 5.4% increase in private brand sales. Excluding the impact of the Lakeville acquisition, sales volume increased 1.8% in the consumer distribution channel, primarily due to a 1.5% increase in private brand sales volume.

Frank Pellegrino: Sales volume declined for peanuts, almonds, defense and walnuts, which was partially offset by sales volume increases for cashews and net entrails in a 4-quarter.

Frank Pellegrino: Sales volume increased 31% in consumer distribution channel primarily due to the late-go acquisition.

Frank Pellegrino: From sales volume downlink consists of private brand bars and accounted for a 35.4% increase in private brand sales.

Frank Pellegrino: Excluding the impact the late-go acquisition sales volume increased 1.8% in consumer distribution channel. Primarily due to a 1.5% increase in private brand sales volume. For sales volume increase for a private brand, the consumer distribution channel was mainly driven by new PBR distribution and increased volume of mixed nuts and a mass merchandising retailer due to retail pricing adjustments which were partially offset by decreased consumer demand for almonds at the same reach.

Frank Pellegrino: Sales volume increased for a private brand in consumer distribution channel was mainly driven by new pivot distribution and increased volume of mixed nuts and a mass merchandising retailer, due to retail pricing adjustments, which were partially offset by decreased consumer demand for almonds at the same rate. The distribution of SNAC and trail mix and new grocery store retailer and increased distribution of SNAC and trail mix at Curry grocery store retailer was tempered by Laura Consumer Demand for SNAC and trail mix products at our mass merchandise unit.

Frank Pellegrino: The distribution of SNAC and trail mix at New Gross Restore Retailer, an increased distribution of SNAC and trail mix at Curry Gross Restore Retailer, was tempered by Laura Consumer Demand for SNAC and trail mix products at our mass merchandising unit.

Frank Pellegrino: The 4.3% increase in sales volume for Brennan products, which includes Fisher recipe nuts, Fisher SNAC nuts, Archivellia harvest, and Southern style nuts, the Consumer Distribution Channel, was primarily attributable to a 21.8% increase in the sales volume of ortho value harvest due to enhanced promotion activity at grocery store retailer and new rotational distribution at a club store customer. Sales volume decreased 5% in the grocery service channel, primarily due to reduced distribution caused by competitive pricing pressures at several customers and not recurring peanut burst sales at a food service distributor that occurs in the fourth quarter of fiscal 2023.

Frank Pellegrino: Sales volume decreased 5% in the Mercer and Greenest Channel, primarily due to reduced distribution caused by competitive pricing pressures at several customers and not recurring sales at a food service distributor, it occurred in the fourth quarter of fiscal 2023.

Frank Pellegrino: Excluding the impact of the Lakeville acquisition, sales volume decreased 6.3% in the commercial and greenest distribution channel, sales volume increased 16.9% in the contract manufacturing distribution channel, due to increased fornola volume process in our Lakeville facility for major customer in this channel.

Frank Pellegrino: Excluding the impact of the Lakeville acquisition, sales volume decreased 6.3%, the commercial increased distribution channel. Sales volume increased 16.9% in the contract manufacturing distribution channel due to increased fornola volume process in our Lakeville facility for a major customer in this channel. Excluding the impact the Lakeville acquisition, sales volume decreased 20.7% in the contract manufacturing distribution channel due to reduced peanut distribution by a major customer caused by soft consumer demand. Additionally, the prior year of the curve of quarter was possibly impacted by a new prior launch as another customer which did not re-occur in the current quarter.

Frank Pellegrino: Excluding the impact of the Lakeville acquisition, sales volume decreased 20.7% in the contract manufacturing distribution channel, due to reduced payment distribution by a major customer caused by soft consumer demand, additionally, the prior year of comparable quarter was possibly impacted by a new prior launch as another customer which should not re-occur in the current quarter.

Frank Pellegrino: Gross profit for a fourth quarter of the current year decreased 4.7 million or 8.6% to 50 million. Excluding the 3.3 million in gross profit related to Lakeville acquisition, gross profit decreased by approximately $8 million due to decreased on prices, reduced sales volume and product mix manufactured inefficiencies. Gross profit margin decreased to 18.5% of net sales in the current fourth quarter compared to 23.4% in the fourth quarter of fiscal 2023 mainly due to higher net sales base in the Lakeville acquisition.

Frank Pellegrino: Gross profit margin decreased to 18.5% of net sales in the current fourth quarter, compared to 23.4% in the fourth quarter of fiscal 2023, mainly due to higher net sales based on Lakeville acquisition.

Frank Pellegrino: Excluding the Lakeville acquisition, gross profit margin decreased to 20.7%, 20.7% due to reasons previously mentioned. Total operating expenses in the quarterly comparison increased to 2.2 million, of which 1.9 million would directly relate to the Lakeville acquisition. Excluding the Lakeville acquisition, total operating expenses increased by $300,000 primarily due to an increase in incentive and equity compensation which was partially offset by a decrease in advertising expenses. Additionally, the prior comparable quarter was negatively impacted by a one-time impairment of a minority investment which did not re-occur with the current quarter.

Frank Pellegrino: Excluding the Lakeville acquisition, gross profit margin decreased to 20.7%, 22.7% due to reasons previously mentioned. Total operating expenses in the quarterly comparison increased to 2.2 million, of which 1.9 million were directly related to Lakeville acquisition. Excluding the Lakeville acquisition, total operating expenses increased by 300,000, primarily due to an increase in incentive and equity compensation, which was partially offset by a decrease in advertising expenses.

Frank Pellegrino: Additionally, the prior comparable quarter was negatively impacted by a one time impairment of a minority investment which did not re-occur as a current quarter.

Frank Pellegrino: Total operating expenses as percentage of net sales decreased to 13.1% from 14.2% to prior year fourth quarter due to a higher net sales base resulting in a liquid acquisition. Excluding a liquid acquisition total operating expenses percentage of net sales increased to 14.9% from 14.2% due to the reasons previously mentioned and a lower net sales base. Interest expense increased to 500,000 from the fourth quarter of fiscal 2024 from 300,000 in last year's quarter. That income was $10,000,000 per 86 cents per share diluted for a fourth quarter of fiscal 2024 and perred to 14.7 million per $1.26 per diluted share.

Frank Pellegrino: Total operating expenses as percentage of net sales decreased to 13.1% from 14.2% to prior year fourth quarter due to a higher net sales base resulting in a liquid acquisition.

Frank Pellegrino: Excluding a liquid acquisition total operating expenses percentage of net sales increased to 14.9% from 14.2% due to the reasons previously mentioned and a lower net sales base.

Frank Pellegrino: Interest expense increased to 500,000 from the fourth quarter of fiscal 2024 from 300,000 in last year's quarter.

Frank Pellegrino: That income was 10 million dollars per 86 cents per share diluted for a fourth quarter of fiscal 2024 in current to 14.7 million or $1.26 per diluted share.

Frank Pellegrino: Now take a look at inventory.

Frank Pellegrino: The total value of inventory on hand at the end of the current fiscal year increased by 23.6 million or 13.7%.

Frank Pellegrino: The current total value of inventory is at the end of fiscal 2023. The increase in total value of inventory was primarily due to a 21.8 million additional inventory associated with the liquid acquisition.

Frank Pellegrino: Excluding the liquid acquisition to total value the value of total inventory on hand increased 1.8 million or 1.1% year over year due to higher quantities of initial peak times in Walnut's higher commodity acquisition cost per one. This was offset by lower quantities of finished goods and peak on meats and lower quantities and commodity acquisition costs for peanuts and cashews.

Frank Pellegrino: This was offset by lower quantities of finished goods and peacock meat and lower quantities and commodity acquisition costs for peanuts and cashews. The weighted average cost per pound of raw nut and dried fruit input stock on hand excluding the impact of the late-go acquisition decreased 9.2% year over year, mainly due to higher quantities of in-shelf heat times in Walnut's on hand.

Frank Pellegrino: The weighted average cost per pound of raw nut and dried fruit input stock on hand excluded the impact of the late-go acquisition decreased 9.2% year over year mainly due to higher quantities of initial peak times in Walnut's on hand.

Frank Pellegrino: Moving on to year-to-date results, fiscal 2024 net sales increased 6.7% to $1.07 billion compared to fiscal 2023 net sales of $999.7 million primarily due to liquid acquisition.

Frank Pellegrino: Moving on to year-to-date results, fiscal 2024 net sales increased 6.7% to 1.07 billion dollars compared to fiscal 2023 net sales of 999.7 million, primarily due to late-go acquisition. Excluding the impact of the late-go acquisition net sales decreased 5.3%, the 946.9 million primarily attributed to a 3.3% decline sales volume and a 2% decrease in the weighted average time price per pound. Sales volume increased 12.3%, primarily due to late-go acquisition. Excluding the impact of late-go acquisition sales volume decreased 3.3%, the sales volume decreases in all three distribution channels.

Frank Pellegrino: Excluding the impact of the late-go acquisition net sales decreased 5.3% the 946.9 million primarily attributed to a 3.3% decline sales volume and a 2% decrease in weighted average selling price per pound.

Frank Pellegrino: Sales volume increased 12.3% primarily due to liquid acquisition. Excluding the impact of the late-go acquisition sales volume decreased 3.3% due to sales volume decreases in all three distribution channels.

Frank Pellegrino: Gross profits per current fiscal year increased 1.2%, 214.1 million, and gross profit margin decreased from 21.2%, the 20.1% of net sales, primarily due to late-go acquisition, which is partly offset by lower commodity acquisition costs for all major treatments. Total operating expenses for fiscal 2024 increased 7.5 million to 129 million, primarily due to increases in incentive compensation, incremental direct operating expenses associated with The increased advertising expense and charitable food donations. These increases were perfect offset by the one-time variant purchase gains in a vehicle acquisition and a decrease in freight expenses.

Frank Pellegrino: Gross profits for current fiscal year increased 1.2% to 214.1 million and growth profit margin decreased from 21.2% to 20.1% of net sales. Primarily due to the late-go acquisition because partly offset by a lower commodity acquisition cost for all major three levels.

Frank Pellegrino: Total operating expenses for fiscal 2024 increased 7.5 million to 129 million primarily due to increases in incentive compensation incremental direct operating expenses associated with the late-go acquisition.

Frank Pellegrino: The increased advertising expense and charitable food donations. These increases were perfect offset by the one-time variant purchase gained from the local acquisition and a decrease in freight expenses.

Frank Pellegrino: Then they come from fiscal 2024 with $60.2 million or $5.15 per deluded share, compared to $62.9 million or $5.40 per deluded share.

Frank Pellegrino: Then they come from fiscal 2024 with $60.2 million or $5.15 per deluded share compared to $62.9 million or $5.40 per deluded share.

Jeffrey Sanfilippo: I would now turn to call back over to Jeffrey to provide additional comments and our performance for the current order in fiscal year.

Jeffrey Sanfilippo: I would now turn to call back over to Jeffrey to provide additional comments and our performance for the current order in fiscal year. Thanks, Frank, for the financial updates.

Jeffrey Sanfilippo: Thanks, Frank, for the financial updates.

Jeffrey Sanfilippo: Now let's shift to consumption activity and category updates.

Jeffrey Sanfilippo: Now let's shift to consumption activity and category updates. I will share some category and grant results with you from the quarter. As always, the market information I'll be referring to is your content reported data and for today it is for the period ending June 16, 2024. We refer to Q4 and referring to 13 weeks of the quarter ending June 16, 2024. There are references to changes in volume or price versus the corresponding period.

Jeffrey Sanfilippo: I will share some category and ground results with you from the quarter.

Jeffrey Sanfilippo: As always, the market information I'll be referring to is your content reported data and for today it is for the period ending June 16, 2024.

Jeffrey Sanfilippo: We refer to Q4 and referring to 13 weeks of the quarter ending June 16, 2024. There are references to changes in volume or price or versus the corresponding period. We look at the category of circumnaised total US definition, which includes food, drug, mass, Walmart, military and other outlets unless otherwise specified. And we discuss pricing, referring to the average price per pound.

Jeffrey Sanfilippo: We look at the category of circumnaised total US definition which includes food, drug, mass, Walmart, military and other outlets unless otherwise specified. And we discuss pricing with a refrain to the average price per pound. Breakouts of the recipe, snack and produce nuts subcategories are based on our custom definitions developed in conjunction with circumna. The snack bar category is the syndicated view as defined by circumna. The term velocity refers to the sales per point of distribution.

Jeffrey Sanfilippo: Breakouts of the recipe, snack and produce nut subcategories are based on our custom definitions developed in conjunction with circumna.

Jeffrey Sanfilippo: The snack bar category is the syndicated view as defined by circumna.

Jeffrey Sanfilippo: The term velocity refers to the sales per point of distribution.

Jeffrey Sanfilippo: In the last quarter we started to see stabilization in the broader snack category. The snack aisle at defined by circumna declined eight tenths of a point in pounds and three tenths of a point in dollars. This is an improvement versus the trends we were seeing in Q3. The total nut and trail mix category was down two percent in dollars and down one percent in pound volume in Q4. This is better performance than we saw last quarter.

Jeffrey Sanfilippo: In the last quarter, we started to see stabilization in the broader snack category.

Jeffrey Sanfilippo: Snack aisle at defined by circumna declined 8 tens of points in pounds and 3 tens of points in dollars.

Jeffrey Sanfilippo: This is an improvement versus the trends we were seeing in Q3.

Jeffrey Sanfilippo: The total nut and trail mix category was down 2% in dollars and down 1% in pound volume in Q4.

Jeffrey Sanfilippo: This is better performance than we saw last quarter. Nut and trail mix prices have moderated and price per pound declined 1% versus the prior year.

Jeffrey Sanfilippo: Nut and trail mix prices have moderated and price per pound declined one percent versus the prior year. We are still seeing consumers trade down to less expensive snacks, our sizes and nut types and deal seek as broader food and essential prices remain elevated.

Jeffrey Sanfilippo: We are still seeing consumers trade down to less expensive snacks, our sizes and nut types and deal seek as broader food and essential prices remain elevated.

Jeffrey Sanfilippo: Now we'll cover each subcategory in more depth, starting with recipe nuts. The recipe nuts subcategory was down 5% in dollars and 4% in pound sales. This is a decline in performance versus what we saw in Q3.

Jeffrey Sanfilippo: Now we'll cover each subcategory in more depth, starting with recipe nuts. The recipe nuts subcategory was down five percent in dollars and four percent in pound sales. This is a decline in performance versus what we saw in Q3. Pricing is stable with both walnuts and pecans, the bulk of this subcategory, being flat to slightly down on a price per pound basis. Our Fisher brand declined in Q4 driven mainly by velocity performance in the grocery channel.

Jeffrey Sanfilippo: Pressing is stable with both walnuts and pecans, the bulk of this subcategory, being flat to slightly down on a price per pound basis.

Jeffrey Sanfilippo: Our Fisher brand declined in Q4 driven mainly by velocity performance in the grocery channel. Fisher declined 11% in dollars and 9% in pounds, unpowered with the performance we saw in Q3. The brand was flat in the mass channel.

Jeffrey Sanfilippo: Fisher declined eleven percent in dollars and nine percent in pounds. I'm par with the performance we saw in Q3. The brand was flat in the mass channel. Fisher is still the branded recipe nut leader and we are actively working on ways to engage consumers with the right price pack architecture and promotions as we plan for this holiday season.

Jeffrey Sanfilippo: This year is still the branded recipe nut leader and we are actively working on ways to engage consumers with the right price pack architecture and promotions as we plan for this holiday season.

Jeffrey Sanfilippo: Now let me turn to the SNAC subcategories. In Q4, the SNAC category was down 3% in dollar sales and down 2% in pound sales. This is an improvement versus the performance we saw in Q3. Pricing continues to stabilize the prices flat versus a year ago. This year SNAC performs worse than the subcategory on 29% in dollars and 33% in pounds. This continues to be driven by significant distribution losses. We are actively working on new promotional plans and new products that give the consumers new exciting products with the value they are looking for.

Jeffrey Sanfilippo: Now let me turn to the SNAC subcategories.

Jeffrey Sanfilippo: In Q4, the SNAC category was down 3% in dollars sales and down 2% in pound sales. This is an improvement versus the performance we saw in Q3. This should be driven by significant distribution losses.

Jeffrey Sanfilippo: We are actively working on new promotional plans and new products that give the consumers new exciting products with the value they are looking for.

Jeffrey Sanfilippo: Our available SNAC lists are performing consistent with the subcategories and a 4% in dollars and down 1% in pounds.

Jeffrey Sanfilippo: Our available SNAC must are performing consistent with the subcategory and a 4% in dollars and down 1% in pounds. The trademark SNAC mixed subcategory was down 2% in dollars and down 2% in pounds in Q4, an improvement versus last quarter. The prices of trail mixes were flat versus a year ago. Our southern style NAC ran grew 2% in dollars and 6% in pounds driven by strong velocity performance in mass and club. The brands, the share leader and trail mix, performed slightly worse than the subcategory and 3% in dollars and pounds driven by poor performance in the mass channel.

Jeffrey Sanfilippo: The SNAC makes subcategories with down 2% in dollars and down 2% in pounds in Q4 and the improvement versus last quarter.

Jeffrey Sanfilippo: For reasons of trail mixes were flat versus a year ago.

Jeffrey Sanfilippo: Our southern style nut brand grew 2% in dollars and 6% in pounds driven by strong velocity performance in mass and club.

Jeffrey Sanfilippo: For other brands, the share leader in trail mix performs slightly worse than the subcategories and 3% in dollars and pounds driven by pork performance in the mass channel.

Jeffrey Sanfilippo: Our last subcategories produce nuts, applying 1% in dollars and grew 1% in pound by M&Q4 better than the performance we saw in Q3.

Jeffrey Sanfilippo: Our last subcategory produce nuts declined 1% in dollars and grew 1% in pound by M&Q4, better than the performance we saw in Q3. Our produce nut brand, Orchard Light Harvest, performed better than the subcategory of 10% in dollars sales and 16% in pounds sales driven by velocity and distribution gains in the grocery channel. We are entering year 2 of our relaunch and are excited to introduce new products and pack sizes to continue momentum on this brand.

Jeffrey Sanfilippo: Our produce nut brand, Orchard Lai Harvest, performs better than the subcategories of 10% in dollars sales and 16% in pounds sales driven by velocity and distribution gains in the grocery channel. We are entering year 2 of our relaunch and are excited to introduce new products and pack sizes to continue momentum on this brand.

Jeffrey Sanfilippo: Now we will switch to the SNAC bar category.

Jeffrey Sanfilippo: Now we will switch to the SNAC bar category. In Q4, the SNAC bar category declined 6% in pounds and 4% in dollars. We are continuing to see the effect of a total recall of a major branded SNAC bar player earlier this year. SNAC bar pricing increased by 2% in Q4. Private label bars continued to grow 14% in dollars and 12% in pounds. Private label bars continue to expand in stores picking up 12% more and TDP distribution while prices rose 2%. We continue to see positive momentum in private label in this category with dollars sharing the quarter of 1.2 points versus last year.

Jeffrey Sanfilippo: In Q4, the SNAC bar category declined 6% in pounds and 4% in dollars. We are continuing to see the effect of a total recall of a major branded SNAC bar player earlier this year. SNAC bar pricing increased by 2% in Q4.

Jeffrey Sanfilippo: Private label bars continued to grow 14% in dollars and 12% in pounds. Private label bars continued to expand in stores picking up 12% more and TDP distribution will prices rose 2%.

Jeffrey Sanfilippo: We continue to see positive momentum in private label in this category with dollars sharing the quarter of 1.2 points versus last year.

Jeffrey Sanfilippo: In closing, we see great opportunities to build our bar business and enter new SNAC bar seconds in innovative products.

Jeffrey Sanfilippo: In closing, we see great opportunities to build our bar business and enter new SNAC bar seconds in innovative products. Our Fisher recipe portfolio, the number one brand in the recipe category, is well-positioned for successful holiday season coming up in Q2.

Jeffrey Sanfilippo: Our Fisher recipe portfolio, the number one brand in the recipe category is well positioned for successful holiday season coming up in Q2.

Jeffrey Sanfilippo: We do continue to face challenges in the future on a macro level which include declining consumption trends in the SNAC category. Also, higher costs for chocolate and cashew nuts due to supply and demand.

Jeffrey Sanfilippo: We do continue to face challenges in the future on a macro level, which include declining consumption trends in the SNAC category. Also, higher costs for chocolate and cashew nuts due to supply and demand. However, our sales and marketing R&D and procurement teams are working with a sense of urgency to find solutions to overcome In fiscal 23, the company achieved five consecutive years of record earnings. While we did not continue that performance trend this year, our teams accomplished so much in fiscal 2024 that will position JBSS for strong growth and profitability in the future.

Jeffrey Sanfilippo: However, our sales and marketing R&D and procurement teams are working with a sense of urgency to find solutions to overcome these headwinds.

Jeffrey Sanfilippo: In fiscal 23, the company achieved five consecutive years of record earnings.

Jeffrey Sanfilippo: These results demonstrate the underlying strength and resilience of our company.

Jeffrey Sanfilippo: These achievements are also a testament to the fortitude of our business model, the commitment of our people, and the mutual trust and depth of our customer and supplier partnerships.

Jeffrey Sanfilippo: We are executing our goals strategies, implementing continuous improvement projects throughout the company to optimize our cost structure, and we continue to invest in our brands and processes to better serve our customers and consumers and create value for our shareholders.

Jeffrey Sanfilippo: We appreciate your participation in the calling. Thank you for your interest in our company.

Jeffrey Sanfilippo: We appreciate your participation in the calling.

Jeffrey Sanfilippo: Thank you for your interest in our company.

Operator: I will now open the call to questions. Thank you.

Operator: I will now open the call to questions.

Operator: Thank you.

Operator: At this time, we will conduct the question and answer session.

Operator: At this time, we'll conduct the question answer session.

Operator: To ask a question, you'll need to press door 1-100 telephone and wait for your name to be announced. To withdraw your question, please press door 1-1 again. Please stand by where we compiled the Q&A roster. Again, as a reminder to ask a question, you'll need to press door 1-1 or your telephone. I'm showing no questions at this time.

Operator: To ask a question, you'll need to press star one one on your telephone and wait for your name to be announced.

Operator: To withdraw your question, please press star one one again.

Operator: Please stand by where we compiled the Q&A roster.

Operator: Again, as a reminder to ask a question, you'll need to press star one one on your telephone.

Operator: I'm showing no questions at this time.

Jeffrey Sanfilippo: I would not like to turn it back to Jeffy for closing remarks. We'd like to thank you for participating in our earnings call today. Have a great day. Thank you.

Jeffrey Sanfilippo: I would not like to turn it back to Jeffy for closing remarks.

Jeffrey Sanfilippo: We'd like to thank you for participating in our earnings call today.

Operator: Have a great day.

Operator: Thank you.

Operator: This concludes the Participatory's conference.

Operator: This concludes the Participatory's conference. You may now disconnect.

Operator: You may now disconnect.

Operator: [inaudible]

Operator: John B Sanfilippo & John B Sanfilippo & Son Inc John B Sanfilippo & John B Sanfilippo & Son Inc[inaudible]

Q4 2024 John B. Sanfilippo & Son Inc Earnings Call

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