John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) Q3 2022 Earnings Conference Call April 28, 2022 11:00 AM ET

Company Participants

Frank Pellegrino - Chief Financial Officer

Jeffrey Sanfilippo - Chief Executive Officer

Jasper Sanfilippo - Chief Operating Officer

Conference Call Participants

Chris McGinnis - Sidoti & Company

Operator

Welcome to the John B. Sanfilippo & Son Incorporated Third Quarter Fiscal 2022 Operating Results Conference Call. My name is James and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions]

And now I'd like to turn the call over to CFO, Frank Pellegrino. Mr. Pellegrino you may begin.

Frank Pellegrino

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

We may make some forward-looking statements today. These statements are based on our 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 that 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.

Starting with the income statement. Net sales for the third quarter of fiscal 2022 increased 5.1% to $218.6 million, compared to net sales of $207.9 million for the third quarter of fiscal 2021. The increase in net sales was attributable to an 8.1% increase in the weighted average sales price per pound and was offset in part by a 2.8% decrease in sales volume, which is defined as pounds sold to customers. The increase in the weighted average selling price was attributable to price increases implemented during the third quarter in response to higher commodity acquisition costs for all major tree nuts and peanuts and increases in freight, labor and other input costs.

Sales volume decreased 5.8% in the consumer distribution channel, primarily driven by a 57.1% decrease in peanut butter sales volume due to the planned downtime associated with the upgrading -- with upgrade of our peanut butter line that occurred and was completed in the third quarter and the discontinuance of our inshell peanut product line, which occurred in the fourth quarter of fiscal 2021. These two factors accounted for substantially all the sales volume decline in the consumer distribution channel.