John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — FY2020 Earnings Presentation
40 slides from John B. Sanfilippo & Son's earnings presentation, Aug 20, 2020
Slide 1: John B. Sanfilippo & Son, August 2020
Exhibit 99.1 NASDAQ: JBSS AUGUST 2020Exhibit 99.1 NASDAQ: JBSS AUGUST 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presentation and any statements by management constitute “forward-looking statements” about John B. Sanfilippo & Son, Inc. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends
Slide 3: JBSS Corporate Overview
JBSS Corporate Overview • One of the largest nut processors in the world with fiscal year 2020 net sales of approximately $880 million • State-of-the-art nut processing capabilities, including what we believe is the single largest nut processing facility in the world • A North American market leader
Slide 4: We Are Experts In Every Nut Type
We Are Experts In Every Nut Type Fiscal Year 2020 ▪ Full assortment of nut types 6% PEANUTS 18% PECANS ▪ Full variety of value-added products 21% CASHEWS & MIXED NUTS 10% WALNUTS ▪ Wide variety of dried fruit and other ALMONDS 15% TRAIL & SNACK MIXES snack products 23% OTHER 7% ▪ Customized, unique
Slide 5: Consistent Financial Success Over Past Fiscal Years
Consistent Financial Success Over Past 7 Fiscal Years Diluted EPS FY 14 - FY 20 Net Sales FY 14 - FY 20 $5.00 $4.69 $1,000,000 $4.50 $4.00 $950,000 $3.43 $3.50 $900,000 $3.17 $2.83 $3.00 $880,092 $2.68 $2.61 $850,000 $2.36 $2.50 $800,000 $2.00 $750,000 $1.50 $700,000 $1.00 $0.50 $650,000 FY 14 FY 15
Slide 6: We Return Cash to Our Shareholders
We Return Cash to Our Shareholders DIVIDENDS PAID BY CALENDAR YEAR $6.00 10.0% 9.0% 8.8% $5.00 8.0% 7.0% 7.0% 6.9% $4.00 6.1% 6.0% 5.2% $3.00 5.0% $4.40 $5.00 4.2% 4.1% 4.0% 3.9% 3.8% $2.85 $2.00 3.0% $2.00 $2.00 2.0% $1.00 $2.00 $1.50 $1.50 1.0% $1.00 $0.65 $0.60 $0.55 $0.50 $0.00 0.0% 2012 2013 20
Slide 7: FY 2020 Results
FY 2020 Results 7FY 2020 Results 7
Slide 8: Create Value
CREATE VALUE CONSUMER WITH KEY CUSTOMERS ERTISE EY) soem n. sanensrro 460, 1c:
Slide 9: FY 2020 Accomplishments
FY 2020 Accomplishments • Grew pound and dollar share in Grocery on every JBSS brand driven by strong performance in Fisher Recipe and our Southern Style Nuts brand • While Fisher Recipe saw challenges driven by private label performance at a key customer, E-commerce growth was a bright spot, especi
Slide 10: FY 2020 Accomplishments
FY 2020 Accomplishments • Expanded core nut and trail mix assortments with our largest, strategic customers & gained new business with top retail customers • Flawlessly managed a significant private brand transition with a major retailer • Great progress penetrating the Non-Commercial sector as we i
Slide 11: FY 2020 Accomplishments
FY 2020 Accomplishments • Significantly accelerated E-commerce growth, outpacing the grocery average • Gained entry into new channels through expanded price pack architecture and met consumers’ needs with more value-added packs • Increased brand penetration through innovative new product offerings c
Slide 12: Business Channel Overview
Business Channel Overview Contract Pkg. 10% $88M Commercial $118M Ingredients $674M 13% Consumer 77% Fiscal 2020 Net Sales $880 Million (Millions of $) 12Business Channel Overview Contract Pkg. 10% $88M Commercial $118M Ingredients $674M 13% Consumer 77% Fiscal 2020 Net Sales $880 Million (Millions
Slide 13: FY 2020 Consumer Channel
FY 2020 Consumer Channel Consumer 77% +7.9% vs. FY 19 Fiscal 2020 Net Sales $674 Million 13FY 2020 Consumer Channel Consumer 77% +7.9% vs. FY 19 Fiscal 2020 Net Sales $674 Million 13
Slide 14: FY 2020 Commercial Ingredients Channel
FY 2020 Commercial Ingredients Channel Commercial Ingredients 13% -16% VS. FY 19 Fiscal 2020 Net Sales $118 Million 14FY 2020 Commercial Ingredients Channel Commercial Ingredients 13% -16% VS. FY 19 Fiscal 2020 Net Sales $118 Million 14
Slide 15: FY 2020 Contract Packaging Channel
FY 2020 Contract Packaging Channel Contract Packaging 10% -20.7% VS FY 19 Fiscal 2020 Net Sales $88 Million 15FY 2020 Contract Packaging Channel Contract Packaging 10% -20.7% VS FY 19 Fiscal 2020 Net Sales $88 Million 15
Slide 16: FY 2020 Nut Category Review
FY 2020 Nut Category Review 16FY 2020 Nut Category Review 16
Slide 17: Average Retail Nut Prices Flat vs FY 19
Average Retail Nut Prices Flat vs FY 19 No Change vs. FY 19 Price per Pound +1.3% vs. FY 16 $6.16 $6.15 $6.09 $6.07 $6.01 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Source: IRI: Nut Category – Multi Outlet Geography Time Periods: Total FY 16 Year Ending 6/26/16 to FY 2020 data ending 6/21/20 17Average
Slide 18: Core Nut Types Declined in Pricing in FY 20
Core Nut Types Declined in Pricing in FY 20 % Increase (Decrease) in Price Per Pound versus FY 19 7% 4% PISTACHIO MACADAMIA PEANUT MIXED NUT WALNUT ALMOND CASHEW PECAN NUT 0% -1% -2% -2% -3% -5% Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: FY 2019 vs. FY 2020 data ending 6/
Slide 19: Category Revenue Up Slightly in FY 20 Due To COVID-19
Category Revenue Up Slightly in FY 20 Due To Impact of COVID-19 Category Pound Sales (M) Category Dollar Sales (M) 1,100 $6,800 1,090 $6,709 1,090 $6,700 1,080 $6,600 $6,546 1,070 1,062 $6,500 1,056 1,060 $6,435 1,050 $6,400 1,044 1,040 $6,278 $6,279 1,034 $6,300 1,030 $6,200 1,020 $6,100 1,010 1,00
Slide 20: FY 2020 Financial Milestones
FY 2020 Financial Milestones 20FY 2020 Financial Milestones 20
Slide 21: JBSS Net Sales FYs 1991-2020
JBSS Net Sales FYs 1991-2020 $1,200 Decreased prices and increased volume 6.1% CAGR over 28.5 Years Increased Pound Volume $1,000 and Prices $880 De-emphasized $800 Industrial Sales, Lower million Prices $600 In millions of $ Low Carb Diet Run Up $400 $200 $0 21 1991 1992 1993 1994 1995 1996 1997 (6
Slide 22: JBSS Total Outstanding Debt FYs 1991-2020
JBSS Total Outstanding Debt FYs 1991-2020 $160 Facility Consolidation Project 68% decline in total debt since 2007 $140 $120 $100 In millions of $ $80 $60 $40 $20 $0 22 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2
Slide 23: JBSS Total Outstanding Debt as % of Net Sales
JBSS Total Outstanding Debt as % of Net Sales FYs 1991-2020 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 23JBSS Total Outstanding Debt as % of Net Sales FYs 1991-2020 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0%
Slide 24: EBITDA
EBITDA EBITDA consists of earnings before interest, taxes, depreciation, amortization and noncontrolling interest. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America ( GAAP ), and does not represent cash flow from opera
Slide 25: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 (in $,000's) NET INCOME (LOSS) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 30,395 3 6,125 32,500 3 9,466 54,110 INTEREST EXPENSE 10,502 7,646 5,65
Slide 26: EBITDA Trends
EBITDA Trends* EBITDA PER POUND SOLD EBITDA 100,000 0.350 90,000 0.300 80,000 0.250 70,000 60,000 0.200 50,000 0.150 40,000 30,000 0.100 20,000 0.050 10,000 - - FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 (in pennies per pound) (in
Slide 27: Peanut and Tree Nut Spot Market Prices vs. JBSS Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN % $7.50 22.5% $7.00 21.0% $6.50 19.5% $6.00 18.0% $5.50 16.5% $5.00 15.0% $4.50 13.5% $4.00 12.0% $3.50 10.5% $3.00 9.0% $2.50 7.5% $2.00 6.0% $1.50 4.5% $1.00 3.0% $0.50 1.5% $0.00 0.0% rolling 4Q gm% cashews 320's almonds
Slide 28: FY 2020 Brand Marketing Review
FY 2020 Brand Marketing Review 28FY 2020 Brand Marketing Review 28
Slide 29: Grow JBSS Brands
Grow JBSS Brands Snack Nuts Recipe Nuts 29Grow JBSS Brands Snack Nuts Recipe Nuts 29
Slide 30: Our focus is to meet consumers where they are
Our focus is to meet consumers… backed by brands and content where they are… with products they want… they love. Online and Brick & Mortar Health & Wellness Brands they can trust Impactful In-Store Easy & Delightful Inspiring new usage Merchandising Experiences Supporting their favorite Beyond Tradi
Slide 31: Our focus is to meet consumers where they are
Our focus is to meet consumers… backed by brands and content where they are… with products they want… they love. 31Our focus is to meet consumers… backed by brands and content where they are… with products they want… they love. 31
Slide 32: Fisher Recipe Pound Share
Fisher Recipe Pound Share Total U.S. MULO 27.5% 27.5% 24.6% 23.5% Recipe Nuts 16.8% Fisher Recipe faced private brand competitive headwinds at a major retailer in FY 20 but saw significant E-commerce & Grocery growth FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Fisher Recipe Pound Share Total Fisher Reci
Slide 33: Inspiring all kitchen creators to do more with Fisher nuts
Inspiring all kitchen creators to do more with Fisher nuts! Recipe Nuts Inspiring Content E-commerce Acceleration Value-added Products & Packs & Expert Partnerships & Impactful In-store Events 33Inspiring all kitchen creators to do more with Fisher nuts! Recipe Nuts Inspiring Content E-commerce Acce
Slide 34: Fisher Snack Pound Share
Fisher Snack Pound Share Total U.S. MULO 0.73% 0.75% 0.69% 0.70% 0.68% 0.64% 0.65% 0.61% Fisher Snack Nuts saw flat Net Sales with a slight 0.60% decline in Pounds driven by core nut distribution 0.55% loss two large customers offset by growth in the FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Oven Roas
Slide 35: Taking Oven Roasted, Never Fried to new heights
Taking Oven Roasted, Never Fried to new heights Impactful communication Oven Roasted Never Fried - clean E-commerce Acceleration ingredient line now in value upsized packs & Major League Baseball partnerships & Adjacent Category Placement 35Taking Oven Roasted, Never Fried to new heights Impactful c
Slide 36: Orchard Valley Harvest Pound Share
Orchard Valley Harvest Pound Share Total U.S. MULO 1.60% 1.44% 1.27% 1.26% 1.40% 1.20% 1.00% 0.82% 0.80% 0.58% 0.60% Orchard Valley Harvest declined in Net Sales 0.40% and Pounds driven by lost space at a major 0.20% 0.00% customer and store closures at another key FY 2016 FY 2017 FY 2018 FY 2019 FY
Slide 37: Bringing the world pure & simple goodness
Bringing the world pure & simple goodness Getting our products into influencer’s New plant based snacking solutions E-commerce Acceleration backed by pure & simple ingredients social feeds & Adjacent Category Placement 37Bringing the world pure & simple goodness Getting our products into influencer’
Slide 38: Squirrel and Southern Style Nuts Growth
Squirrel grew in Net Sales while slightly Southern Style Nuts grew significantly given declining in Pounds driven by shifts to more increased distribution in the grocery channel profitable customers and performance at a key customer Total Squirrel Brand Growth FY 20 vs. FY 19 Total Southern Style Nu
Slide 39: Introducing our brands to more people in more places
Introducing our brands to more people in more places New sizes of Hunter Mix & Squirrel to Bringing Squirrel into new channels – Bringing our brand stories to life unlock Grocery distribution foodservice, airports, and convenience 39Introducing our brands to more people in more places New sizes of H
Slide 40: Thank You
THANK YOU 40THANK YOU 40
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