John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) Q4 2022 Earnings Conference Call August 25, 2022 10:00 AM ET

Company Representatives

Jeffrey Sanfilippo - Chief Executive Officer

Jasper B Sanfilippo Jr. - Chief Operating Officer

Mike Valentine - Group President

Frank Pellegrino - Chief Financial Officer

Conference Call Participants

Operator

Good day, and thank you for standing by. Welcome to the John B. Sanfilippo & Son, Incorporated Fourth Quarter and Fiscal 2022 Year-End Operating Results Conference Call. At this time all participants are in a listen-only mode. After the speakers presentation there will be question-and-answer session. [Operator Instructions]. Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your speaker today Frank Pellegrino, Chief Financial Officer. Please go ahead.

Frank Pellegrino

Thank you. Good morning everyone and welcome to our 2022 fourth quarter and fiscal year earnings conference call. Thank you for joining us today. On the call with me today is Jeffrey Sanfilippo, our CEO; Jasper B Sanfilippo Jr., our COO; and Mike Valentine, our Group President.

We may make some forward-looking statements today. These statements are based on current expectations and involve certain risks and uncertainties that are inherent in our business. The factors that could negatively impact results are explained in the various SEC filings we have made, including Forms 10-K and 10-Q. We encourage you to refer to these filings to learn more about these risks and uncertainties that are inherent in our business.

I will start the call by carving financial highlights for 2022 fourth quarter and fiscal year. Both the current fourth quarter and fiscal year containing an additional week compared to same periods of fiscal 2021. The current fourth quarter net sales increased 24.7% to $257.7 million compared to net sales of $206.7 million for the fourth quarter of fiscal 2021.

The increase in net sales was due to a 12.5% increase in the weighted average selling price per pound, and a 10.9% increase in sales volume, which we define as pounds sold to customers. The increase in weighted average selling price per pound resulted from an increase in commodity acquisition costs for peanuts, all major tree nuts, dried fruits and other input costs due to inflationary conditions.

Excluding the estimated impact of the actual weaken in the current fourth quarter, net sales increased approximately 16%, and sales volume increased approximately 3%. Sales volume increased in all three distribution channels in the current fourth quarter. Sales volume in the consumer distribution channel increased 7.5%. The volume increase in the consumer channel was primarily driven by a 9.9% increase in private brand sales volume, from increases in trail and snack mixes resulting from new distribution at an existing customer and increased consumer demand for lower priced products such as peanuts in response to the current economic environment.