Ronald [Indiscernible]'s questions to John B Sanfilippo & Son Inc (JBSS) leadership • Q3 2025
Question
Ronald, a private investor, asked for an outlook on commodity costs, excluding tariffs, and questioned what the increase in price per pound indicated. He also sought clarification on the near-term gross margin target and the drivers behind the increase in inventory value. Finally, he asked for updates on the company's forward-looking strategy beyond the announced capital expenditures.
Answer
CEO Jeffrey Sanfilippo explained that some commodity prices, like cashews, have stabilized and may decline further due to demand destruction from higher retail prices. He outlined the forward strategy, which includes focusing on holiday programs, managing price points, investing in the bar category, and continuously evaluating M&A opportunities. CFO Frank Pellegrino clarified that the inventory value increase was driven by higher acquisition costs for walnuts and pecans, which are held for 9-12 months, and a temporary increase in finished goods that will be sold through in Q4.