John B. Sanfilippo & Son, Inc. · NASDAQ:JBSS
John B. Sanfilippo & Son — Sanfilippo John B & SON — Shareholder Meeting (October 2019)
70 slides from John B. Sanfilippo & Son's shareholder meeting presentation, Oct 30, 2019
Slide 1: FY 2019 Shareholder Meeting
FY 2019 Shareholder Meeting NASDAQ: JBSS October 30, 2019 Exhibit 99.1
Slide 2: Agenda
JBSS Overview and Results - Jeffrey Sanfilippo Chairman & CEO FY 2019 Financial Milestones - Mike Valentine CFO & Group President Brand Marketing Overview - Howard Brandeisky Sr. V.P. Global Marketing Closing Remarks - Jeffrey Sanfilippo Chairman & CEO Agenda
Slide 3: 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 in our business and the mar
Slide 4: Consistent Success Over Past Fiscal Years
Consistent Success Over Past 6 Fiscal Years Diluted EPS Increased by 45% from FY 14 to FY 19 Net Sales increased by over 12.5% from FY 14 to FY 19
Slide 5: We Return Cash to Our Shareholders
Yield based on average daily closing stock price over one year period. Calendar 2019 through 10/22/19 We Return Cash to Our Shareholders
Slide 6: FY 2019 Results
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Slide 7: Building Our Future
FG) JOHN B- SANFILIPPO < SON, INC- BUILDING OUR FUTURE EXPAND CREATE VALUE CONSUMER WITH KEY CUSTOMERS Win now customers by entering Be these diesrina by Utilize insights to develop channels, launching oFteing sey ean an products and integrated marketing litte 0 uality programs that build brand equi
Slide 8: FY 2019 Accomplishments
Orchard Valley Harvest net sales grew 16% in the consumer channel due to new product introductions, higher velocity and increased distribution Grew Fisher “Oven Roasted, Never Fried” snack nut line of products, with ACV* distribution up +16% versus prior year A challenging year for Fisher recipe due
Slide 9: FY 2019 Accomplishments
Expanded product assortments at key retail private brand partners, particularly in value-added trail mix category Gained new “Top 20” private brand retail partners Despite challenges in Commercial Ingredient sector, we significantly expanded business with a key foodservice distributor FY 2019 Accomp
Slide 10: FY 2019 Accomplishments
Expanded branded portfolio on Amazon with addition of Squirrel Brand and Hunter Mix Expanded branded distribution in airports, hotels, fitness centers and business & industry FY 2019 Accomplishments 10
Slide 11: Business Channel Overview
Fiscal 2019 Net Sales $876 Million Business Channel Overview (Millions of $) Contract Pkg. 13%
Slide 12: FY 2019 Consumer Channel
Fiscal 2019 Net Sales $626 Million FY 2019 Consumer Channel Consumer 71% +6.1% vs. FY 18
Slide 13: FY 2019 Commercial Ingredients Channel
Fiscal 2019 Net Sales $140 Million FY 2019 Commercial Ingredients Channel -9.1% VS. FY 18 Commercial Ingredients 16%
Slide 14: FY 2019 Contract Packaging Channel
FY 2019 Contract Packaging Channel Fiscal 2019 Net Sales $110 Million -24% VS FY 18 Contract Packaging 13%
Slide 15: FY 2019 Nut Category Review
FY 2019 Nut Category Review 15
Slide 16: Average Retail Nut Prices Up Slightly in FY
Average Retail Nut Prices Up Slightly in FY 19 Source: IRI: Nut Category – Multi Outlet Geography Time Periods: Total FY 15 Year Ending 6/28/15 to FY 2019 data ending 6/23/19 +2% vs. FY 18 +5% vs. FY 15
Slide 17: Moderate Changes in Nut Prices in FY
Moderate Changes in Nut Prices in FY 19 Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: FY 2018 vs. FY 2019 data ending 6/23/19
Slide 18: Category Revenue Up Slightly Driven by Higher Prices
Category Revenue Up Slightly Driven by Higher Prices Source: IRI: Total Nut Category – Multi Outlet Geography Time Periods: FY 15 Year Ending 6/28/15 to FY 2019 data ending 6/23/19
Slide 19: Locally Grown
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Slide 20: FY 2019 Financial Milestones
FY 2019 Financial Milestones 20
Slide 21: JBSS Stockholders' Equity FY 1991-2019
In millions of $ 8.8% CAGR over 27.5 Years JBSS Stockholders’ Equity FY 1991-2019
Slide 22: JBSS Net Sales FYs 1991-2019
Increased Pound Volume and Prices De-emphasized Industrial Sales, Lower Prices Low Carb Diet Run Up $876 million In millions of $ Decreased prices and volume 6.3% CAGR over 27.5 Years JBSS Net Sales FYs 1991-2019
Slide 23: JBSS Total Outstanding Debt FYs 1991-2019
In millions of $ Facility Consolidation Project 81% decline in total debt since 2007 JBSS Total Outstanding Debt FYs 1991-2019 Acquisition of Squirrel Brand
Slide 24: Total Outstanding Debt as % of Net Sales
JBSS Total Outstanding Debt as % of Net Sales FYs 1991-2019
Slide 25: 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 26: 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 (in $,000's) NET INCOME (LOSS) (5,957) 6,917 14,425 2,835 17,122 21,760 26,287 29,305 30,395 36,125 32,500 39,466 INTEREST EXPENSE 10,502 7,646 5,653 6,444 5,364 4,7
Slide 27: EBITDA Trends
* EBITDA is a non-GAAP measure. See slide entitled “Reconciliation of Net Income to EBITDA” for reconciliation to GAAP measure (in $ thousands) EBITDA Trends*
Slide 28: Spot Market Prices vs. JBSS Rolling Quarter Gross Margin
PEANUT AND TREE NUT SPOT MARKET PRICES VS. JBSS ROLLING 4 QTR. GROSS MARGIN % 28
Slide 29: Financial Highlights: Q1 FY 2020 vs. Q1 FY 2019
Net Sales $13,558 6.6% Sales Volume (Lbs. Sold) 5,895 9.1% Gross Profit $9,294 28.2% Net Income $6,320 95.7% Earnings Per Share (Diluted) $0.55 96.5% Operating Cash Flows $6,793 43.3% Total Debt ($43,111) 50.9% Change % Change Financial Highlights: Q1 FY 2020 vs. Q1 FY 2019 (in 000’s except EPS)
Slide 30: FY 2019 Brand Marketing Review
FY 2019 Brand Marketing Review 30
Slide 31: Snack Nuts, Grow Brands, Recipe Nuts
Snack Nuts Grow Brands Recipe Nuts
Slide 32: Recipe Nuts
Recipe Nuts Walnut Halves & Pieces F USE) som. sanriurro ©son. INC.
Slide 33: Total Fisher Recipe Brand Growth
Total Fisher Recipe Brand Growth FY 19 vs. FY 18 DOLLAR NET SALES POUND SALES Source: JBSS shipment data 52 week versus 52 week comparison Fisher Recipe in the Consumer Channel Only Recipe Nuts (9)% (12)% Fisher Recipe Faced Private Brand Competitive Headwinds in FY 19 Consumer Channel
Slide 34: Fisher Recipe Faced Private Brand Competitive Headwinds
Fisher Recipe Faced Private Brand Competitive Headwinds in FY 19 Source: IRI: Total Recipe Nut Category – Multi Outlet Geography – FY 2015 - 2019 Data Ending 6/23/19
Slide 35: Fisher Recipe Has Strong Distribution Nationally
National Distribution 35 Fisher recipe distribution updated 6.20.19 Fisher Recipe has Strong Distribution Nationally
Slide 36: Fisher Recipe Continued Strong Share Growth in Traditional Grocery
Fisher Recipe Continued Strong Share Growth in Traditional Grocery Source: IRI: Total Recipe Nut Category – Food Geography – FY 2015- 2019 Data Ending 6/23/19
Slide 37: Continued Partnership with the Food Network
Continued Partnership with the Food Network in FY 19
Slide 38: Engaging Consumers with Influencers on Social Media
Engaging Consumers with Influencers on Social Media Original PR photo content created and photographed by the Fisher Fresh Thinkers Influencer Network
Slide 39: Snack Nuts
Snack Nuts OVEN ROASTED NEVER FRIED X MIXED NUTS a JOHN B. SANFILIPPO & SON, INC.
Slide 40: Fisher Snack Increased Pound Sales in FY
Fisher Snack Increased Pound Sales in FY 19 Total Fisher Snack Growth FY 19 vs. FY 18 Snack Nuts Source: JBSS shipment data 52 week versus 52 week comparison Fisher Snack in Consumer Channel Only. DOLLAR NET SALES Flat POUND SALES +4% Consumer Channel
Slide 41: Fisher Snack Market Share
Fisher Snack Market Share Source: IRI: Total Snack Nut Category – Multi Outlet Geography –Periods: FY 15 to FY 19 data ending 6/23/19.
Slide 42: Oven Roasted Never Fried the Driver of Growth
Oven Roasted Never Fried the Driver of Growth
Slide 43: Differentiated Offering in the Snack Nut Category
Differentiated Offering in the Snack Nut Category
Slide 44: Strong Marketing Support to Communicate Key Point of Difference
Strong Marketing Support to Communicate the Key Point of Difference Digital / Social & Print In Store Radio FSI Sampling
Slide 45: New Distribution!
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Slide 46: Fisher Oven Roasted Never Fried Driving Share Gains
Fisher Oven Roasted Never Fried Driving Share Gains in Markets with Distribution Source: IRI: Total Snack Nut Category – Multi Outlet Geography in IRI markets with ORNF distribution –Periods: FY 17 to FY 19 data ending 6/23/19.
Slide 47: Orchard Valley Harvest
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Slide 48: Solid Year of Growth for Orchard Valley Harvest
Solid Year of Growth for Orchard Valley Harvest +13% +16% DOLLAR NET SALES POUND SALES Source: JBSS shipment data 52 week versus 52 week comparison. Orchard Valley Harvest brand in Consumer Channel Orchard Valley Harvest Growth FY 19 vs. FY 18 Consumer Channel
Slide 49: Increasing Share Growth for Orchard Valley Harvest
Increasing Share Growth for Orchard Valley Harvest Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 15 to FY 2019 data ending 6/23/19
Slide 50: Continued Distribution Growth
Source: IRI: Total Produce Nut Category – Multi Outlet Geography Time Periods: to FY 15 to FY 2019 data ending 6/23/19 Continued Distribution Growth
Slide 51: Orchard Valley Harvest Establishing National Distribution
BREAUX Markets 1 1 2 2 National Distribution Updated 6.20.19 Orchard Valley Harvest Establishing National Distribution 51
Slide 52: Expanded Salad Topper Line
Expanded Salad Topper Line 52
Slide 53: Social Media and Digital Support to Engage Consumers
Social Media and Digital Support to Engage Consumers 53
Slide 54: Squirrel Brand
SQUIRREP BRAND REGQU\S. PAT. OFF. Ciince 1888
Slide 55: Expanding Consumer Reach
Expanding Consumer Reach 55
Slide 56: Supporting Squirrel Brand through Social Media
Supporting Squirrel Brand through Social Media 56
Slide 57: Southern Style Nuts
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Slide 58: Growing Southern Style Nuts with Expanded Distribution and New Items
Growing Southern Style Nuts with Expanded Distribution and New Items 58
Slide 59: Growth Strategy
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Slide 60: Snack Nuts, Grow Brands, Recipe Nuts: How
Snack Nuts Grow Brands Recipe Nuts How Unique consumer insights developed through custom IRI database Robust innovation pipeline Expand beyond nuts into other plant proteins – e.g. chickpea snacks
Slide 61: Porkless Rindz Sales Trial - Woodman's Store
Porkless Rindz Sales Trial -Woodman’s Store 61
Slide 62: Expand Consumer Reach Across All JBSS Brands
Expand Consumer Reach Across All JBSS Brands Foodservice Club Stores Alternative Stores Travel eCommerce
Slide 63: Club Channel
Club Channel VIRGINA COSTCO STORE WITH SQUIRREL CRÈME BRULE ALMONDS 63
Slide 64: Operational Excellence
Operational Excellence Quality / Regulatory Commodity Expertise Be Preferred Partner to Build Profitable Volume of Value-Added Nuts & Snacks
Slide 65: Investments in Infrastructure
Investments in Infrastructure Over $15 Million Dollars in FY 19 Warehouse Infrastructure Automation Equipment Upgrades Increased Capacity Food Safety
Slide 66: JBSS Mission
JBSS Mission To be the global leader of quality driven, innovative nut solutions that enhance the customer and consumer experience and achieve consistent, profitable growth for our shareholders. We will accomplish this through our commitment to a dynamic infrastructure that maximizes the potential o
Slide 67: JBSS Teams Will Drive Results: Gustine, CA and Selma, TX
JBSS TEAMS WILL DRIVE RESULTS IN FY 20 Gustine, CA 67 Selma, TX
Slide 68: JBSS Teams Will Drive Results: Bainbridge, GA
Bainbridge, GA 68 JBSS TEAMS WILL DRIVE RESULTS IN FY 20
Slide 69: JBSS Teams Will Drive Results: Elgin, IL
Elgin, IL 69 JBSS TEAMS WILL DRIVE RESULTS IN FY 20
Slide 70: Thank You
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Sanfilippo John B & SON — Shareholder Meeting (October 2019) on 6ix