John B. Sanfilippo & Son CEO: Initiatives are paying off
John B. Sanfilippo & Son, Inc. (Nasdaq: JBSS) CEO Jeffrey Sanfilippo said the processor of tree nuts and peanuts’ business initiatives are paying off. In the second quarter, which ended Dec. 27, the company closed two Chicago-based facilities and cut its workforce. The chief executive made the comments during a morning conference call.
“The second quarter results are significant,” Sanfilippo said. “The company has made difficult but necessary changes to our business model and we will continue to execute our strategies to improve our financial performance and provide improved products and services to our valued customers.”
In an effort to improve profit margins, the Elk Grove Village, Ill.-based business also eliminated about 1,200 items from its product offerings.
“Items were evaluated based on sales volume, order frequency and profitability,” Sanfilippo said.
CFO Mike Valentine said the nuts processor ended its store-door distribution program, due to profitability problems.
“We anticipate that approximately 50% of the $2.5 million in sales made through this distribution mode in calendar 2007 will migrate to more conventional modes of distribution, such as shipping direct to customer distribution centers,” Valentine said.
Before Monday’s opening, John B. Sanfilippo posted second-quarter net income of $3.5 million, or $0.33 per share, up 150% from $1.4 million, or $0.13 per share, a year earlier.
The company’s quarterly revenue fell a little to $177 million, from $177.7 million during the same period of 2006. Total product pounds shipped declined 6.7%, which was due to a decrease in sales by distribution channels, especially its discontinued almond-handling operations.
Going forward, the CEO said the firm will focus on improving its manufacturing efficiencies, driving sales volumes through business channel opportunities and managing packaging and raw materials inventories.
In midday trading, JBSS shares are down 1.55%, or $0.15, at $9.20. Over the last 52 weeks, shares have ranged from $6.72 on Jan. 25 to $15, which was clocked on Feb. 12, 2007.
