John B. Sanfilippo & Son returned to companywide sales-volume growth during its fiscal fourth quarter of 2026 after five consecutive quarterly declines, but higher costs and operational challenges pressured profitability and drove diluted EPS down 38%. Fourth-quarter net sales increased 4.2% to $280.4 million, while sales volume increased 1.4% to 87.4 million pounds.
The volume increase marked an important change in direction following five consecutive quarters of declining companywide volume.
Revenue growth also benefited from pricing. The company’s weighted average selling price per pound increased 2.8%, primarily reflecting pricing actions implemented in response to higher acquisition costs for peanuts and most major tree nuts.
That pricing benefit was partially offset by a mix shift toward lower-priced products.
Despite improving sales and volume, fourth-quarter gross profit declined 9.5% to $44.1 million.
Gross margin fell to 15.7% from 18.1%, a contraction of 240 basis points. Profitability was affected by $2.7 million of recall-related costs involving dry milk powder supplied by a third-party manufacturer and used in seasoning for certain products.
Higher customer claims, snack bar ingredient costs, freight expenses and manufacturing inefficiencies also weighed on gross profit.
Diluted EPS declined 38.3% to $0.71.
Management specifically cited higher-than-expected input and transportation expenses, manufacturing inefficiencies associated with onboarding a large contract-manufacturing customer and certain customer-related charges as pressures on fourth-quarter profitability.
The composition of volume growth also showed a meaningful shift in the company’s business.
Consumer distribution volume increased 0.8%, supported by a 2.4% increase in private-brand volume. Initial shipments to a new grocery retailer and expanded distribution at two existing grocery customers helped drive that increase.
Contract Manufacturing was substantially stronger, with volume jumping 12.6% primarily because of increased snack nut sales to a significant customer added during the prior fiscal year.
Commercial Ingredients volume declined 5.4%, mainly reflecting the timing of peanut crushing stock sales.
For the full fiscal year, net sales increased 6.2% to approximately $1.18 billion despite a 2.5% decline in sales volume.
The company’s weighted average selling price per pound increased 8.9% for the year. Gross profit increased 3.8% to $211.2 million, while diluted EPS increased 4.6% to $5.26.
John B. Sanfilippo also continued returning capital to shareholders. The company increased its annual declared dividend 5.6% to $0.95 per share and declared a $1.05 special dividend, 75% higher than the prior year’s special dividend.
Total dividends paid during calendar 2026 are expected to reach $3.50 per share.
KEY QUOTES:
“We were encouraged to see a return to growth in our company-wide sales volume after five consecutive quarters of decline.”
Jeffrey T. Sanfilippo, Chief Executive Officer of John B. Sanfilippo & Son
