John B. Sanfilippo & Son announced record operating results for both its fiscal 2015 fourth quarter and fiscal year ended June 25, 2015.
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Net income for the fourth quarter of fiscal 2015 was $8.5 million, or $0.75
per share diluted, compared to net income of $6.6 million, or $0.59 per share diluted, for the fourth quarter of fiscal 2014.
Net income for fiscal 2015 increased by 11.5% to $29.3 million compared to net income of $26.3 million for fiscal 2014. Diluted earnings per share for fiscal 2015 increased by 10.6% to $2.61 compared to $2.36 for fiscal 2014.
Fiscal 2015 fourth quarter net sales increased by 9.3% to $221.4 million from net sales of $202.5 million for the fourth quarter of fiscal 2014 primarily due to higher selling prices driven by increased commodity acquisition costs.
Fiscal 2015 net sales increased by 14% to $887.2 million from $778.6 million for fiscal 2014 due to higher selling prices resulting from increased commodity acquisition costs and a 5.4% increase in sales volume.
Sales volume increased in the consumer channel by 7.9% and in the contract packaging channel by 8%. Sales volume was relatively unchanged in the commercial ingredients channel and declined by 4.6% in the export channel.
Gross profit increased 7.5% to $132.1 million in fiscal 2015 from $122.9 million in fiscal 2014. Gross profit margin decreased to 14.9% of net sales for fiscal 2015 from 15.8% for fiscal 2014.
The increase in gross profit resulted primarily from increased sales volume. Gross profit margin declined for the same reasons cited in the quarterly comparison.
Total operating expenses for the fourth quarter of fiscal 2015 were 9.3% of net sales compared to 10.7% of net sales for the fourth quarter of fiscal 2014.
The decline in total operating expenses, as a percentage of net sales, was mainly attributable to a higher level of net sales. The decline in total operating expenses in the quarterly comparison was mainly due to lower shipping and advertising expenses.
Total operating expenses for fiscal 2015 were 9% of net sales compared to 9.7% of net sales for fiscal 2014. The decline in total operating expenses, as a percentage of net sales, was again mainly attributable to a higher level of net sales.
The increase in total operating expenses in the annual comparison was mainly due to increases in employee related costs and advertising expenses. Total operating expenses in fiscal 2014 included a $1.6 million gain on the sale of an Elgin, Illinois site that was formerly owned by the Company.
Interest expense of $1.1 million for the fourth quarter of fiscal 2015 was relatively unchanged from interest expense for the fourth quarter of fiscal 2014. Interest expense declined to $4 million for fiscal 2015 from $4.4 million for fiscal 2014.
The decline in interest expense in the annual comparison as primarily attributable to lower interest rates for the short-term borrowing facility. ■