John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Q1 2024 Earnings Presentation
45 slides from John B. Sanfilippo & Son's earnings presentation, Nov 15, 2023
Slide 1: Q1 FY24 Investor Update
Exhibit 99.1 Q1 FY24 Investor Update NASDAQ: JBSS JOHN.B SANFILIPPO & SON,INC. Proprietary & Confidential John B. Sanfilippo & Son, Inc.
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 net sales of approximately $1.0B (FY23) 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 in every selling chann
Slide 4: We are THE Nut Experts
We are THE Nut Experts SALES BY NUT TYPE Full portfolio of nut types Variety of value-added products Compliment of dried fruit and snack products Customized, unique product formulas Proprietary & Confidential| John B. Sanfilippo & Son, Inc. 4
Slide 5: Strong Financial Performance
Strong Financial Performance Pounds Sold1 +3.4% CAGR Diluted EPS2 +10.6% CAGR +2.6% CAGR Margins2 +4.7% CAGR Avg. Daily Stock Price +17.3% CAGR Proprietary & Confidential| John B. Sanfilippo & Son,Inc.Source:1JBSS Sales Data: 2JBSS Form 10-k. 5
Slide 6: Pounds Sold vs. Net Sales per Pound Sold
Pounds Sold vs. Net Sales per Pound Sold JOHN B. SANFILIPPO & SON,INC. Proprietary & Confidential| John B. Sanfilippo & Son ,Inc. Source: JBSS Sales Date.350.0 300.0 250.0 200.0 150.0 100.0 50.0 221.8 240.4 253.5 270.1 260.1 268.9 2728 2728 289.4 289.4 293.9 314.2 308.5 $3.31 $3.24 $3.50 $3.52 $3.26
Slide 7: EBITDA Trends
EBITDA Trends EBITDA In $ thousands EBITDA PER POUND SOLD in pennies per pound EBITDA is a non-GAAP measure. See appendix slide entitled “Reconciliation of Net Income to EBITDA” for reconciliation to GAAP measure. EBITDA consists of earnings before interest, taxes, depreciation, amortization and non
Slide 8: Returning Cash to Shareholders and Investing in the Future
Returning Cash to Shareholders and Investing in the Future DIVIDENDS PAID BY CALENDAR YEAR* Amount per share CAPITAL EXPENDITURE HISTORY in millions *Yield based on average daily closing stock price over one year period. Calendar 2023 average daily closing price through 8/7/2023.Source: JBSS Form 10
Slide 9: Strong Foundation for Future Success
Strong Foundation for Future Success NET WORKING CAPITAL DEBT TO EQUITY DEBT TO EBITDA RETURN ON EQUITY Source: JBSS fORM-10k Proprietary & Confidential| John B. Sanfilippo & Son,Inc.$114,992 $168,742 46.7% INCREASE 34.5% 2.7% 92.2% DECREASE FY13 FY23 FY13 FY23 FY13 FY23 FY13 FY23 1.31 0.07 10.1% 21
Slide 10: Financial Highlights: Q1 FY2024
John B. Sanfilippo & son, inc Financial Highlights: Q1 FY2024 Change % Change Net Sales ($18,496,000) (7.3%) Sales Volume (Lbs Sold) (5,768,000) (7.3%) Gross Profit$6,379,000 12.6% Net Income $2,043,000 13.1% Earnings per Share (diluted) $0.17 12.7% Operating Cash Flow ($8,765,000) (28.6%) Total Deb
Slide 11: FY 2023 Results
FY 2023 ResultsProprietary & confidential john B. Sanfilippo & son, inc 11
Slide 12: JBSS Mission & What Matters Most
John B. Sanfilippo & son, inc JBSS Mission & What Matters Most We’re nuts about creating real food that brings joy, nourishes people & protects the planet.expand consumer reach create value with key customers grow jbss brands win new customers by entering new channels launching differentiated produc
Slide 13: Expand Consumer Reach Accomplishments
John B. Sanfilippo & son, inc Expand Consumer Reach Accomplishments Continued to accelerate our E-commerce growth, outpacing the grocery average Increased distribution with Fisher Recipe Expanded core business with new pack sizes across brands to unlock new channels and price points Expanded brand e
Slide 14: Create Value with Key Customer Accomplishments
John B. Sanfilippo & son, inc Create Value with Key Customer Accomplishments Grew core nuts and trail mix assortments at some of our largest, strategic customers including new business with seasonal and confectionery items Exclusive peanut butter supplier to largest broadline food service distributo
Slide 15: Grow JBSS Brands Accomplishments
John B. Sanfilippo & son, inc Grow JBSS Brands Accomplishments Our biggest brands, Fisher Recipe & Orchard Valley Harvest, grew shipment volume vs. FY22 Grew JBSS Branded Total Points of Distribution by +11% vs. FY22 Continue to be the branded leader in Recipe Nuts with Fisher despite heavy competit
Slide 16: Net Sales by Distribution Channel
John B. Sanfilippo & son, inc Net Sales by Distribution Channel FY13 FY2312% 5% 24% 59% $734M Tatal ner sales 12% 9% 79% $999M total net sales Export Contract Packaging Commercial Ingredients Consumer Source: JBSS Form 10-K.Proprietary confidential john B. Sanfilippo & son, inc 16
Slide 17: Peanut & Tree Nut Spot Market Prices vs. JBSS Gross Margin
John B. Sanfilippo & son, inc Peanut & Tree Nut Spot Market Prices vs. JBSS Rolling 4 Qtr. Gross Market % $8.00 $7.50 $7.00 $6.50 $6.00 $5.50 $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 24.0% 22.5% 21.0% 19.5% 18.0% 16.5% 15.0% 13.5% 12.0% 10.05% 9.0% 7.5% 6.0% 4.5% 3.0% 1.5% 0
Slide 18: Retail Nut Category Year Trends
John B. Sanfilippo & son, inc Retail Nut Category 5 Year Trends % Increase (Decrease) in Price per Pound vs. Last Year2 Price per Pound1 3.5% increase$6.14 $6.14 $6.15 $6.24 $6.46 FY19 FY20 FY21 FY22 FY23 Category Pound Sales3 in millions 8.7% 4.3% 3.7% 3.7% 3.3% 1.9% -0.1% pecan almond cashew mixed
Slide 19: Consumer Channel
John B. Sanfilippo & son, inc. Consumer Channel $786M Net Sales Key Drivers Private Label Growth E-Commerce Growth Mass Growth +4.8% versus FY22 Snack Nuts & Trail Mixes All Brands Fisher Recipe Source: JBSS FY23 Form 10-K. proprietary & confidential| John B. Sanfinlippo & Son, Inc 19
Slide 20: Commercial Ingredients Channel
John B. Sanfilippo & son, inc. Commercial Ingredients Channel $123M Net Sales Key Drivers Foodservice Channel Net Sales +11% vs. LY Industrial Channel Net Sales -22% vs. LY Distributor / Operator Growth Favorable Pricing Soft consumer Spending JBSS business priorities 20
Slide 21: Contract Manufacturing
John B. Sanfilippo & son, inc. Contract Manufacturing $91M Net Sales Key Drivers +6.5% Increased Distribution Launched New products versus FY22 Source: JBSS FY23 Form 10-K. proprietary & confidential| john B. Sanfilippo & Son, Inc. 21
Slide 22: FY 2023 Brand Marketing Review
John B. Sanfilippo & son, inc. FY 2023 Brand Marketing Review proprietary & confidential| john B. Sanfilippo & Son, Inc. 22
Slide 23: Grow JBSS Brands
John B. Sanfilippo & son, inc. Grown JBSS Brands Fisher recipe nuts ovh orchard valley harvest Fisher nuts Squirrel Nuts since 1888 southern style nuts est.1922 just the cheese proprietary & confidential| john B. Sanfilippo & Son, Inc. 23
Slide 24: Meet consumers where they are
John B. Sanfilippo & son, inc. Our priority is to Meet consumers where they are With the products, packs and price they want From the brands they know & love Online and Brick & Mortar Balancing Health & Taste Brands they can trust Impactful In-Store Merchandising High Quality Ingredients Distinctive
Slide 25: Meet consumers where they are: products, packs and price
John B. Sanfilippo & son, inc. Meet consumers where they are With the products, packs and price they want From the brands they know & love OVH spells Good! Start a new holiday tradition: no leftovers. proprietary & confidential| john B. Sanfilippo & Son, Inc. 25
Slide 26: Fisher Recipe grew net sales and pounds
John B. Sanfilippo & son, inc. Fisher Recipe grew both net sales & pounds due to increased distribution in mass and grocery. DOLLAR NET SALES1 POUND SALES1 16.2% +5.3% FY23 vs FY 22 Source: 1Power BI, JBSS Sales Data, 8/11/2023; 2Circana, Total US MULO, fiscal years ending 6/23/2019, 6/21/2020, 6/20
Slide 27: Fisher Recipe Distribution
John B. Sanfilippo & son, inc. Fisher Recipe Distribution Amazon.com Source: Power BI, JBSS Sales Data 8/1/2023 proprietary & confidential| john B. Sanfilippo & Son, Inc. 27
Slide 28: Fisher Recipe Distribution
Fisher Recipe Distribution JOHN B. SANFILIPPO & SON, INC. Source: Power BI, JBSS Sales Data 8/1/2023 Proprietary & Confidential | John B. Sanfilippo & Son, Inc. fisher graphic 28
Slide 29: Fisher Snack declined pounds and net sales
JOHN B. SANFILIPPO & SON, INC. Fisher Snack declined pounds and net sales as we saw increased pricing and competitive pressure DOLLAR NET SALES1 POUND SALES1 -1.6% -18.2% FY23 vs. FY22 Fisher Snack Dollar Share – Total US MULO2 Source: 1Power BI, JBSS Sales Data, 8/11/2023; 2Circana, Total US MULO,
Slide 30: Fisher Snack Distribution
JOHN B. SANFILIPPO & SON, INC. Fisher Snack Distribution Source: Power BI, JBSS Sales Data 8/1/2023. Proprietary & Confidential John B. Sanfilippo & Son, Inc. fisher Graphic logo 30
Slide 31: Focused on Oven Roasted Never Fried
Focused on Oven Roasted Never Fried JOHN B. SANFILIPPO & SON, INC. E-commerce acceleration & adjacent category placement Clean ingredient line in value sized packs Impactful, simple communication Proprietary & Confidential | John B. Sanfilippo & Son, Inc. ONLY THE GOOD STUFF NO OILS ADDED NO ARTIFIC
Slide 32: Orchard Valley Harvest grew pounds, slightly declined in net sales
JOHN B. SANFILIPPO & SON, INC. Orchard Valley Harvest grew pounds and slightly declined in net sales through distribution in alternative channels and updated promotional strategy in grocery & mass. DOLLAR NET SALES1 DOLLAR NET SALES1 -1.3% 4.6% FY23 vs. FY22 Source: 1Power BI, JBSS Sales Data, 8/11/
Slide 33: Orchard Valley Harvest Distribution
JOHN B. SANFILIPPO & SON, INC. Orchard Valley Harvest Distribution orchard valley harvest Legend Foodservice Distribution Micro-Market/Vending Distribution Pins represent approx. 20,000 points of distribution Source: Power BI, JBSS Sales Data 8/1/2023 Proprietary & Confidential | John B. Sanfilippo
Slide 34: Launching the NEW Orchard Valley Harvest
JOHN B. SANFILIPPO & SON, INC. Orchard Valley Harvest Launching the NEW Orchard Valley Harvest E-commerce acceleration & adjacent category placement Snacks that balance health & taste A distinctive design & campaign Proprietary & Confidential | John B. Sanfilippo & Son, Inc.graphic 34
Slide 35: Squirrel and Southern Style Nuts results
JOHN B. SANFILIPPO & SON, INC. Squirrel declined net sales and pounds as we didn’t repeat a club rotation and lost distribution at a coffee chain DOLLAR NET SALES1 POUND SALES1 -16.6% -21.0% FY23 vs. FY22 Southern Style Nuts grew net sales, but declined pounds as we had higher prices in FY23 DOLLAR
Slide 36: Southern Style Nuts & Squirrel Brand Distribution
JOHN B. SANFILIPPO & SON, INC. Southern Style Nuts & Squirrel Brand Distribution Source: Power BI, JBSS Sales Data 8/1/2023. Proprietary & Confidential | John B. Sanfilippo & Son, Inc.logo 36
Slide 37: Long-Term Strategy
Long-Term Strategy Property & confidential John B. Sanfilippo & Son, Inc 37
Slide 38: Our Long-Term Growth Pillars
Our Long-Term Growth Pillars Grow with our top customers through value-added Private Label programs Expand capacity Invest in category & consumer insights Innovate with high-quality products Diversify our portfolio into high-growth snacking segments Build & buy into high growth snacking spaces Focus
Slide 39: Focused on Community, Sustainability and DEI
Focused on Community, Sustainability and DEI Fight food insecurity & support education of new generation of growers CONSCIOUS ALLIANCE art that feeds Work with farmers & nut boards to reduce water usage Focus on our environmental impact sustainable U.S. peanuts JBBS Thinks green resource conservatio
Slide 40: We officially entered the Bars category in FY23
We officially entered the Bars category in FY23 Bars Category is $8.8B1 Split between four main segments NUTRITION 48% OTHER BREAKFAST 26% 4% GRANOLA 22% Growing 10% vs. YAGO Nutrition Bars Largest segment with low PL Share2 Private Brands Dollar Share2 12.2% 8.0% 1.2% BREAKFAST GRANOLA & A/O NUTRIT
Slide 41: Strategic Acquisition
Strategic Acquisition On Sept. 29th, JBSS closed on the acquisition of certain assets including inventory, a manufacturing facility located in Lakeville, MN and customer relationships The purchase price was approximately $58.8M which included $34.9M of inventory This acquisition accelerates our prod
Slide 42: The Bars Opportunity
The Bars Opportunity Bars Category is $8.8B1 Category made up of three segments OTHER 4% BREAKFAST 26% NUTRITION 48% GRANOLA 22% Private Label Bars underindex vs. Food Average Private Label Bars = $420MM with 7.6% CAGR2 Private Brands Dollar Share2 12.2% 8.0% 1.2% BREAKFAST GRANOLA & A/O NUTRITION C
Slide 43: Category at a Glance
Category at a Glance $8.50 $8.60 $8.70 $8.80 $8.90 $9.00 $9.10 $9.20 $9.30 $9.40 $.50 Size - Billions Bars Nut & Trail Mix HH Penetration 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 74.5% 86.1% Bars Nut & Trail Mix 3 Year CAGR 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 8.1% 2.4% Bars Nut & Trail Mix PL Share %0
Slide 44: Appendix
Appendix Proprietary & Confidential | John B. Sanfilippo & Son, Inc 44
Slide 45: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EDITDA (in $,000's) FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 NET INCOME (LOSS) 21,760 26,287 29,305 30,395 36,125 32,500 39,466 54,110 59,741 61,787 62,857 INTEREST EXPENSE 4,754 4,354 3,966 3,492 2,910 3,463 3,060 2,005 1,441 1,921 2,159 INCOME TAX EXPE
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