John B Sanfilippo & Son Inc (JBSS) 2025 Q2 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the John B. Sanfilippo & Son Incorporated second-quarter fiscal year 2025 operating results conference call. (Operator Instructions)

女士們、先生們，大家好，感謝你們的支持。歡迎參加 John B. Sanfilippo & Son Incorporated 2025 財年第二季營運業績電話會議。（操作員指令）

Please be advised that today's conference is being recorded. I would now like to turn the call over to Jeffrey Sanfilippo, CEO. Please go ahead.

請注意，今天的會議正在錄音。現在我想將電話轉給執行長 Jeffrey Sanfilippo。請繼續。

Thank you, Lisa. Good morning, everyone, and welcome to our 2025 second-quarter earnings conference call. Thank you for joining us. On the call with me today is Jasper Sanfilippo, our COO; and Frank Pellegrino, our CFO.

謝謝你，麗莎。大家早安，歡迎參加我們 2025 年第二季財報電話會議。感謝您加入我們。今天與我一起通話的是我們的營運長 Jasper Sanfilippo；以及我們的財務長 Frank Pellegrino。

We may make some forward-looking statements today. These statements are based on our current expectations and may involve certain risks and uncertainties. The factors that could negatively impact results are explained in the various SEC filings that we have made, including our forms 10-K and 10-Q. We encourage you to refer to the filings to learn more about these risks and uncertainties that are inherent in our business.

我們今天可能會做出一些前瞻性的陳述。這些聲明是基於我們目前的預期，可能涉及一定的風險和不確定性。我們向美國證券交易委員會提交的各種文件（包括 10-K 表和 10-Q 表）解釋了可能對結果產生負面影響的因素。我們鼓勵您參考這些文件來了解更多有關我們業務中固有的風險和不確定性的信息。

We are pleased to report our largest quarterly sales volume and highest net sales in our company's history in the second quarter. This achievement was driven by the second consecutive quarter of sales volume increases across all three of our distribution channels as we execute our long-range plan.

我們很高興地報告，第二季度我們公司實現了歷史上最大的季度銷售量和最高的淨銷售額。這一成績的取得得益於我們實施長期計劃後，三個分銷管道的銷售量連續第二個季度增長。

Additionally, our bar sales volume increased by approximately 28% over the prior-year quarter. We remain encouraged by the sales volume growth across our company and are focused on enhancing profitability through operational efficiencies and optimized pricing strategies.

此外，我們的酒吧銷售量比去年同期增長了約28％。我們對整個公司的銷售量成長感到鼓舞，並致力於透過提高營運效率和優化定價策略來提高獲利能力。

Our Fisher recipe brand had a very successful holiday season in Q2 and performed better than the category. We have a great branded program that complements our retailer's private brand recipe program to enhance the baking category. Our sales and marketing teams are sharing the success story with our retail partners to demonstrate how Fisher can build their business, and we're excited about the opportunities to expand our distribution.

我們的 Fisher 食譜品牌在第二季的假期季節取得了非常成功的成績，並且表現優於其他類別。我們有一個很棒的品牌計劃，它可以補充我們零售商的自有品牌食譜計劃，以增強烘焙類別。我們的銷售和行銷團隊正在與我們的零售合作夥伴分享成功案例，以展示 Fisher 如何建立他們的業務，我們對擴大分銷的機會感到非常興奮。

To support our growth, the company has successfully moved our warehouse distribution in Elgin to the new facility we are leasing in Huntley, Illinois. It was an enormous task to complete the relocation of our customer shipping activities, and I want to thank the leaders in our administration, customer solutions, demand planning, engineering, logistics, and key operations and warehouse teams for their hard work and dedication to complete this important initiative.

為了支持我們的發展，公司已成功將位於埃爾金的倉庫配送遷移至我們在伊利諾伊州亨特利租賃的新設施。完成客戶運輸活動的遷移是一項艱鉅的任務，我要感謝我們的行政、客戶解決方案、需求計劃、工程、物流以及關鍵運營和倉庫團隊的領導，感謝他們的辛勤工作和奉獻精神，完成了這一重要舉措。

Now that the warehouse distribution move is complete, we have started to expand our production capabilities in Elgin, utilizing the 300,000 square feet of space we freed up. Over the next 18 months, the company will add additional manufacturing capacity to support our growth plans and to provide new innovative product platforms for our customers and consumers. We expect some of this new equipment to be in production by the end of this fiscal year.

現在倉庫配送遷移已經完成，我們已經開始擴大在埃爾金的生產能力，利用我們釋放的 300,000 平方英尺的空間。在未來 18 個月內，公司將增加額外的生產能力以支援我們的成長計劃，並為我們的客戶和消費者提供新的創新產品平台。我們預計部分新設備將在本財政年度結束時投入生產。

As we shared in our earnings release, gross profit and margins have been negatively impacted by several factors. Competitive pricing pressure and strategic pricing decisions to maintain and grow our volume brought down average selling prices.

正如我們在收益報告中所述，毛利和利潤率受到了多種因素的負面影響。競爭性定價壓力和策略定價決策使我們的銷售量保持並成長，從而降低了平均銷售價格。

Despite stabilization in inflation rates, there are input costs in our industry that remain elevated and, in some cases, continue to increase, such as chocolate and now walnuts. This created significant margin compression before price increases could be executed. But we have initiated selling price adjustments for all our brands and private brand customers, which take effect in Q3, the majority of which will occur in January and February.

儘管通貨膨脹率趨於穩定，但我們行業的投入成本仍然很高，在某些情況下，甚至還在繼續上漲，例如巧克力和現在的核桃。在價格上漲之前，這會導致利潤率大幅壓縮。但我們已經對所有品牌和自有品牌客戶啟動了銷售價格調整，該調整將於第三季生效，其中大部分將在一月和二月發生。

In addition to pricing, the company is also laser focused on cost optimization and organizing our structure and processes for growth. Key areas of opportunity include efficiencies in operations, supply chain, freight, SG&A, commissions, trade spend and business, and formula creation. There are key leaders across the organization reimagining how we do business and go to market. And I'm excited about the margin enhancement initiatives this team will look at and execute.

除了定價之外，公司還注重成本優化以及組織我們的結構和流程以實現成長。關鍵機會領域包括營運、供應鏈、貨運、銷售、一般及行政費用、佣金、貿易支出和業務以及公式創建的效率。整個組織的關鍵領導正在重新構想我們的經營方式和進入市場的方式。我對這個團隊將研究和執行的提高利潤率的舉措感到非常興奮。

There are common themes among other CPG companies in the food space that are navigating in this current environment. Consumer behavior shifts where people are increasingly seeking value influenced by economic uncertainties and inflation. This continues to create a shift to discount retailers and smaller pack sizes or bulk purchases during promotions. We continue to assess our price pack architecture and focus on retailers such as those in the club channel to grow our business and provide consumers with innovative products.

在當前環境下，食品領域的其他快速消費品公司有著共同的主題。消費者行為發生了變化，人們越來越尋求受經濟不確定性和通膨影響的價值。這導致人們在促銷期間繼續轉向折扣零售商和較小包裝尺寸或批量購買。我們將繼續評估我們的價格包架構，並專注於俱樂部通路等零售商，以發展我們的業務並為消費者提供創新產品。

I'll now turn the call over to Frank Pellegrino, our CFO, to provide additional information on our financial performance for our first fiscal -- second fiscal quarter.

現在，我將把電話轉給我們的財務長弗蘭克·佩萊格里諾 (Frank Pellegrino)，以提供有關我們第一財季和第二財季財務業績的更多資訊。

Thank you, Jeffrey. Starting with the income statement. Net sales for the second quarter of fiscal 2025 increased 3.4% to $301.1 million, compared to net sales of $291.2 million in the second quarter of fiscal 2024. The increase in net sales was due to a 7.1% increase in sales volume, which is defined as pounds sold to customers, which was partially offset by a 3.4% decrease in the weighted average sales price per pound. Decrease in the weighted average selling price primarily resulted from higher sales volume of lower-priced bars, granola, and private brand recipe nuts.

謝謝你，傑弗裡。從損益表開始。2025 財年第二季的淨銷售額成長 3.4% 至 3.011 億美元，而 2024 財年第二季的淨銷售額為 2.912 億美元。淨銷售額的成長是由於銷售量（定義為銷售給客戶的磅數）增加了 7.1%，但每磅加權平均銷售價格下降了 3.4% 而部分抵消了這一增長。加權平均售價的下降主要是由於低價棒、格蘭諾拉麥片和自有品牌配方堅果的銷售增加。

Additionally, strategic pricing decisions and competitive pricing pressures contributed to the overall decrease in the weighted average selling prices and contributed to increased sales volume. Sales volume increased 2.9% in the consumer distribution channel, primarily due to a 4% increase in private brand sales volumes.

此外，策略定價決策和競爭定價壓力導致加權平均銷售價格整體下降，並促進銷售量增加。消費者分銷管道的銷售量成長了2.9%，主要原因是自有品牌銷售量成長了4%。

The private brand volume increase was due to a 27.6% growth in bars volume from a mass merchandising retailer returning to normalized inventory levels. Sales volume increased 3.4% for our branded products, which includes Fisher recipe nuts, Fisher snack nuts, Orchard Valley Harvest, and Southern Style Nuts. The decrease in branded sales volume was mainly attributable to a 3.8% increase in sales volume of Fisher recipe nuts due to increased merchandising activity at several customers.

自有品牌銷售量的成長是由於大眾商品零售商的酒吧銷售成長了27.6%，庫存水準恢復正常。我們的品牌產品的銷售量成長了 3.4%，其中包括 Fisher 配方堅果、Fisher 零食堅果、Orchard Valley Harvest 和 Southern Style Nuts。品牌銷售量的下降主要由於費雪牌堅果的銷售量增加3.8%，原因是多個客戶的商品銷售活動增加。

Additionally, the sales volume of Southern Style Nuts increased 11.8%, driven by a return to normalized inventory levels and increased sales velocity at a club store customer. Sales volume increased 1.4% in the commercial ingredients distribution channel due to higher sales of peanut crushing stock to peanut oil processors and distribution to a new food service customer, which was partially offset by lost business to another customer.

此外，由於庫存水準恢復正常以及俱樂部商店顧客的銷售速度加快，南方風味堅果的銷量增加了 11.8%。商業配料分銷管道的銷售量增長了 1.4%，原因是花生壓榨原料對花生油加工商的銷量增加以及對一家新的食品服務客戶的分銷，但部分被另一家客戶的業務損失所抵消。

Sales volume increased 55.6% on the contract manufacturing distribution channel, primarily due to increased granola volume processed in our Lakeville facility. This increase was partially offset by reduced peanut and cashew sales volume to a major customer due to soft consumer demand.

合約製造分銷管道的銷售量增加了 55.6%，這主要歸因於我們萊克維爾工廠加工的格蘭諾拉麥片數量增加。由於消費者需求疲軟，對主要客戶的花生和腰果銷售量減少，部分抵消了這一增長。

Gross profit decreased $5.7 million or 9.8% compared to the second quarter of last year, driven by competitive pricing pressures and strategic pricing decisions as well as higher commodity acquisition costs for most tree nuts. The decrease was partially offset by improved profitability of bars.

由於競爭性定價壓力和戰略定價決策以及大多數樹堅果的商品採購成本上漲，毛利與去年第二季度相比下降了 570 萬美元，即 9.8%。酒吧盈利能力的提高部分抵消了這一下降。

Second quarter gross profit margin as a percentage of net sales decreased to 17.4%, compared to 19.9% for the second quarter of fiscal 2024, due to the reasons previously mentioned. Total operating expenses for the second quarter increased $2.5 million as compared to the prior-year quarter due to a one-time $2.2 million bargain purchase gain associated with the Lakeville acquisition, which did not recur in the current quarter. The increase was also driven by higher freight, rent and compensation expenses, which were significantly offset by decreases in incentive compensation, consulting and marketing expense.

由於前面提到的原因，第二季毛利率佔淨銷售額的百分比從 2024 財年第二季的 19.9% 下降至 17.4%。第二季的總營運費用與去年同期相比增加了 250 萬美元，原因是與 Lakeville 收購相關的一次性 220 萬美元廉價購買收益在本季度沒有重複出現。成長的另一個原因是運費、租金和薪資費用的增加，但激勵薪資、諮詢和行銷費用的減少大大抵消了這些費用的增加。

Total operating expenses for second quarter of 2025 increased to 10.9% of net sales from 10.4% for last year's second quarter due to the reasons previously mentioned and partially offset by a higher net sales base.

2025 年第二季的總營運費用從去年第二季的淨銷售額的 10.4% 增至 10.9%，原因如上所述，但部分被更高的淨銷售額基數所抵銷。

Interest expense was $800,000 for the second quarter of fiscal 2025, compared to $1.1 million for the second quarter of fiscal 2024, primarily due to lower average debt levels. Net income for second quarter of fiscal 2025 was $13.6 million or $1.16 per diluted share, compared to $19.2 million or $1.64 per diluted share for the second quarter of fiscal 2024.

2025 財年第二季的利息支出為 80 萬美元，而 2024 財年第二季的利息支出為 110 萬美元，這主要是由於平均債務水準較低。2025 財年第二季的淨收入為 1,360 萬美元，即每股攤薄收入 1.16 美元，而 2024 財年第二季的淨收入為 1,920 萬美元，即每股攤薄收入 1.64 美元。

Now we'll take a look at inventory. The total value of inventories on hand at the end of the current second quarter increased $8.5 million or 4.3%, compared to the total value of inventories on hand at the end of the prior-year comparable quarter. The increase is mainly due to higher commodity acquisition costs for almost all major tree nuts and chocolate as well as higher on-hand quantities of almonds and cashews.

現在我們來看看庫存。本第二季末的庫存總價值與去年同期相比增加了 850 萬美元，增幅為 4.3%。價格上漲的主要原因是幾乎所有主要樹堅果和巧克力的商品收購成本上漲，以及杏仁和腰果的庫存增加。

The weighted average cost per pound of raw nut and dried food increased 33.7% year over year, mainly due to higher commodity acquisition costs for almost all major tree nuts.

每磅生堅果和乾堅果的加權平均成本年增 33.7%，主要是由於幾乎所有主要樹堅果的商品收購成本上漲。

Moving on to year-to-date results. Net sales for the first two quarters of the current year increased 9.9% to $577.3 million compared to the first two quarters of fiscal 2024. Excluding the 2025 first-quarter impact for the Lakeville for acquisition, net sales increased 2.2% to $536.8 million. The increase in net sales was primarily attributed to a 4.1% increase in sales volume, which was partially offset by a 1.9% decrease in the weighted average selling price per pound.

繼續討論年初至今的業績。本年度前兩季的淨銷售額與 2024 財年前兩季相比成長 9.9% 至 5.773 億美元。不計收購 Lakeville 對 2025 年第一季的影響，淨銷售額成長 2.2% 至 5.368 億美元。淨銷售額的成長主要歸因於銷售量成長4.1%，但每磅加權平均售價下降1.9%部分抵銷了這一成長。

Sales volumes increased by 14.9% due to increased sales volume in all channels, mainly driven by the impact of the Lakeville acquisition. Gross profit margin decreased 4.8% to 17.1% of net sales. The decrease was mainly attributable to lower selling prices due to competitive pricing pressures and strategic pricing decisions, along with increased commodity acquisition costs for almost all major nut commodities. This was partially offset by improved profitability of bars.

銷售量增加了 14.9%，主要由於所有管道的銷售量增加，這主要受到 Lakeville 收購的影響。毛利率下降4.8%至淨銷售額的17.1%。下降的主要原因是競爭性定價壓力和策略定價決策導致銷售價格下降，以及幾乎所有主要堅果商品的商品採購成本增加。但酒吧獲利能力的提高部分抵消了這一影響。

Total operating expenses for the current year-to-date remained relatively unchanged at $62.4 million, compared to $62.8 million for the first two quarters of fiscal 2024. Interest expense was $1.3 million for both the first two quarters of fiscal 2025 and fiscal 2024.

本年度迄今的總營運費用相對保持不變，為 6,240 萬美元，而 2024 財年前兩季為 6,280 萬美元。2025 財年及 2024 財年前兩季的利息支出均為 130 萬美元。

Net income for the first two quarters of fiscal 2025 was $25.3 million or $2.16 per diluted share, compared to net income of $36.8 million or $3.15 per diluted share for the first two quarters of fiscal 2024.

2025 財年前兩季的淨收入為 2,530 萬美元或每股攤薄收益 2.16 美元，而 2024 財年前兩季的淨收入為 3,680 萬美元或每股攤薄收益 3.15 美元。

Please refer to our 10-Q, which was filed yesterday, for additional details regarding our financial performance for the second quarter of fiscal 2025. Now I'll turn the call over back thank to Jeffrey to provide additional comments on our operating results for second quarter and discuss category trends.

有關我們 2025 財年第二季度財務業績的更多詳細信息，請參閱我們昨天提交的 10-Q 報告。現在，我將把電話轉回，感謝 Jeffrey 對我們第二季的營運業績提供補充評論並討論類別趨勢。

Thanks, Frank, for the financial updates. While we continue to navigate a challenging operating environment, I am proud of the efforts and results from each of our business segments to grow our volume and develop long-term business partnerships. I am confident that we have the right strategy, agility, and team to continue to deliver strong results.

謝謝弗蘭克提供的財務更新資訊。雖然我們繼續在充滿挑戰的營運環境中前行，但我對我們每個業務部門為擴大業務量和發展長期業務夥伴關係所做的努力和取得的成果感到自豪。我相信我們擁有正確的策略、敏捷性和團隊，能夠繼續取得強勁的業績。

Now let's turn to category updates. I'll share some category and brand results with you for the quarter. All the market information I'll be referring to is Circana panel data, and for today, it is the period ending December 29, 2024.

現在讓我們來討論類別更新。我將與您分享本季的一些類別和品牌業績。我將參考的所有市場資訊都是 Circana 面板數據，而今天的數據是截至 2024 年 12 月 29 日的數據。

When I refer to Q2, I'm referring to 13 weeks of the quarter ending December 29, 2024. References to changes in volume are versus the corresponding period one year ago. For pricing commentary, we are using scanned data from Circana, which includes food, drug, mass, Walmart, military, and other outlets. We are referring to average price per pound. We're using the nut, trail mix, and bar syndicated views of the category as defined by Circana.

當我提到第二季時，我指的是截至 2024 年 12 月 29 日的季度的 13 週。數量變化是與一年前同期相比的。對於價格評論，我們使用來自 Circana 的掃描數據，其中包括食品、藥品、大眾、沃爾瑪、軍事和其他網點。我們指的是每磅的平均價格。我們正在使用 Circana 定義的類別的堅果、乾果混合物和能量棒聯合視圖。

In the latest quarter, we continue to see modest growth in the broader snack outlook as defined by Circana. Volume and dollars were up 1.5% and 3.4%, respectively. This is consistent with the performance we saw in Q1 as pricing and inflation continued to stabilize.

在最新一個季度，我們繼續看到 Circana 定義的整體零食前景呈現溫和成長。交易量和金額分別上漲了1.5%和3.4%。這與我們在第一季看到的表現一致，因為價格和通膨持續穩定。

In Q2, the snack and trail mix category performed similar to the broader snack aisle, up 1% in pounds and 2% in dollars. It's also consistent with the performance we saw in Q1. We saw prices fall 1% in snack nuts with slightly lower retail prices across all major nut types except for almonds. Trail mix's prices were flat. Fisher snack and trail mix performed on par with the category with pound shipments up 2%. This was driven primarily by growth at a major specialty retailer and e-commerce.

在第二季度，零食和混合乾果類別的表現與更廣泛的零食貨架類似，以英鎊計算上漲了 1%，以美元計算上漲了 2%。這也與我們在第一季看到的表現一致。我們發現零食堅果的價格下跌了 1%，除杏仁外，所有主要堅果類型的零售價格均略有下降。乾果混合物的價格持平。Fisher 零食和乾果混合食品的表現與同類產品持平，出貨量增加了 2%。這主要得益於大型專業零售商和電子商務的成長。

Our Southern Style Nuts brand pound shipments increased 12%, driven primarily by velocity growth in club, mass and e-commerce. Orchard Valley Harvest brand, which primarily plays in trail mix, was relatively flat in pound shipments and up 1% driven by strong growth in club and e-commerce, mostly offsetting declines in mass and specialty.

我們的 Southern Style Nuts 品牌出貨量成長了 12%，這主要得益於俱樂部、大眾和電子商務的速度成長。Orchard Valley Harvest 品牌主要生產混合乾果，其出貨量相對持平，受俱樂部和電子商務強勁增長的推動，出貨量上漲 1%，基本上抵消了大眾和特色產品的下滑。

Commodity increases, including cocoa and some tree nuts, are resulting in higher prices for Orchard Valley Harvest. We are actively working on innovation and cost savings opportunities to help mitigate this commodity pressure. Our private label consumer and trail shipments performed in line with the category, with pound shipments relatively flat to last year.

包括可可和一些堅果在內的大宗商品價格上漲，導致 Orchard Valley Harvest 的價格上漲。我們正在積極致力於創新和節約成本的機會，以幫助減輕這種商品壓力。我們的自有品牌消費者和小徑出貨量表現與類別一致，磅出貨量與去年基本持平。

Now let me turn to the recipe category. In Q2, the recipe nut category was down 2% in pounds and up 4% in dollars as prices for both walnuts and pecans increased during the prime holiday baking season. This is an improvement in dollar performance but a decline in volume performance in Q1.

現在讓我轉到食譜類別。在第二季度，由於在主要假日烘焙季節核桃和山核桃的價格上漲，食譜堅果類別的磅價下降了 2%，美元價上漲了 4%。第一季美元表現有所改善，但銷售表現下降。

Our Fisher recipe pound shipments performed better than the category and were up 4% in Q2, with continued strength in e-commerce, grocery and mass. Fisher continued to be the brand recipe leader and had a successful holiday season, as I mentioned.

我們的 Fisher 食譜磅出貨量表現優於同類產品，在第二季度成長了 4%，並且在電子商務、雜貨和大眾市場繼續保持強勁勢頭。正如我所提到的那樣，Fisher 繼續成為品牌食譜的領導者，並度過了一個成功的假期季節。

Now we will switch to the bar category. In Q2, the bar category grew 3% in pounds and 6% in dollars as a major player continued to re-enter the market after a recall last winter. Private label continues to grow within bars, up 10% in pounds and up 13% in dollars. Our private label bar shipments are up significantly versus year ago, 28%, driven primarily by velocity growth. We continue to see positive momentum in private label in this category.

現在我們切換到酒吧類別。第二季度，由於主要參與者在去年冬季召回後繼續重新進入市場，酒吧類別以英鎊計算增長了 3%，以美元計算增長了 6%。自有品牌酒吧的銷售持續成長，以英鎊計算成長 10%，以美元計算成長 13%。我們的自有品牌酒吧出貨量與去年同期相比大幅成長了 28%，這主要得益於速度成長。我們繼續看到該類別自有品牌的正面動能。

In closing, as we look ahead to the second half of fiscal 2025, we begin with cautious optimism as we see continued strong consumption of our category and improving volume consumption in the nut and trail mix categories. This is an exciting time for our company as we execute on our future growth strategies and organize the company to improve margins. We are committed to creating long-term shareholder value through these strategic initiatives and continued operational excellence.

最後，展望 2025 財年下半年，我們首先持謹慎樂觀的態度，因為我們看到我們的品類消費繼續保持強勁，並且堅果和混合乾果品類的銷量也在不斷提高。對於我們公司來說，這是一個令人興奮的時刻，因為我們正在執行未來成長策略並組織公司提高利潤率。我們致力於透過這些策略舉措和持續的卓越營運為股東創造長期價值。

I want to extend my thanks to all our employees for their hard work and dedication, which has been instrumental in achieving our record volume growth in Q2.

我要向我們所有員工的辛勤工作和奉獻精神表示感謝，這對我們在第二季度實現創紀錄的銷售成長起到了重要作用。

R&D, insights, and tech services teams are designing a pipeline of differentiated and innovative products to bring to market. Our operations, procurement, administration and continuous improvement teams continue to look at ways to optimize our manufacturing and supply chain to reduce costs.

研發、洞察和技術服務團隊正在設計一系列差異化和創新產品以推向市場。我們的營運、採購、管理和持續改進團隊不斷尋找優化製造和供應鏈以降低成本的方法。

As always, we will continue to respond to challenges, including the current economic and operating environment. I believe we have the right team, initiatives, and strategies to overcome these challenges to provide differentiated value to our customers and consumers and deliver long-term shareholder value.

一如既往，我們將繼續應對挑戰，包括當前的經濟和經營環境。我相信我們擁有合適的團隊、舉措和策略來克服這些挑戰，為我們的客戶和消費者提供差異化價值，並實現長期股東價值。

Our management team and all our associates continue to work hard to expand our business, to build stronger brands, to build more innovative product platforms, and to provide higher levels of quality and service to our customers and consumers. We appreciate your participation in the call and thank you for your interest in our company.

我們的管理團隊和全體員工將繼續努力拓展業務，打造更強大的品牌，建立更具創新性的產品平台，並為我們的客戶和消費者提供更高水準的品質和服務。感謝您參與此電話會議，也感謝您對我們公司的關注。

We'll now open the call to questions. Lisa, please queue up the first question.

我們現在開始回答問題。Lisa，請排隊回答第一個問題。

(Operator Instructions) Nick Otton, CWB.

（操作員指示）Nick Otton，CWB。

I just wanted to start on the pricing environment and what's going on there. You're talking about it's becoming really competitive and seem to need to maintain share there. So just some further detail would be great.

我只是想開始討論定價環境以及那裡發生的事情。您說到競爭正在變得非常激烈，而且似乎需要保持其份額。因此，如果能提供更多細節就更好了。

Sure. So obviously, we've talked about increased commodity costs, especially in almonds, chocolate, cashews in the last couple of quarters, and now we're seeing increased cost in walnuts. And we have typically a six-month pricing review with our retail partners, so it takes time to get those price increases initiated before actually raw material cost flows through our system. So that's put margin pressure on the company.

當然。顯然，我們討論了商品成本的上漲，尤其是過去幾季杏仁、巧克力、腰果的成本上漲，現在我們又看到核桃成本的上漲。我們通常會與零售合作夥伴進行為期六個月的價格審查，因此在原材料成本真正流入我們的系統之前，需要一定的時間來啟動這些價格上漲。這給公司的利潤帶來了壓力。

But in addition to that, because of the volume declines in some areas such as almonds, for example, we're seeing competitive price pressure from some of the brands not raising pricing in order to kind of maintain and try to rebuild some of that volume growth.

但除此之外，由於杏仁等某些領域的銷量下降，我們看到一些品牌面臨競爭價格壓力，他們沒有提高價格，以維持並試圖重建部分銷售成長。

So that puts even more pressure on some of our private brand retailers because they expect a gap between the brand leader and their private brand. So it's a combination of things that have impacted pricing. As I mentioned, we have taken pricing now on all our brands and our private brand customers. So most of that goes into effect in January and February of this quarter. So a lot of it is being initiated as we speak.

這給我們的一些自有品牌零售商帶來了更大的壓力，因為他們預計品牌領導者和他們的自有品牌之間存在差距。所以，影響定價的因素很多。正如我所提到的，我們現在已經對所有品牌和自有品牌客戶進行了定價。因此，大部分內容將於本季的一月和二月生效。正如我們所說，很多事情都已經開始了。

And then will that take you back to like a gross margin per pound closer to over [60%] from the current 50% the last couple of quarters?

那麼這是否會使每磅的毛利率從過去幾季的 50% 回到接近 [60%] 以上？

Hi, Nick. This is Frank. That's our long-term goal, and we have a process in place that gets back up to those historical averages. And that will occur over the next several quarters.

你好，尼克。這是弗蘭克。這是我們的長期目標，我們已經制定了恢復到歷史平均值的流程。這將在接下來的幾個季度內發生。

Okay. And then just on the brands, I guess they have been losing share. Is it sustainable on their level? I understand you guys are one of the lowest cost of the industry, but can the branded keep up with not increasing price with the commodity environment?

好的。就品牌而言，我猜他們的市場份額一直在下降。就他們的水平而言，這能持續下去嗎？我知道你們是業界成本最低的之一，但品牌能跟上商品環境而不漲價嗎？

Yes. It's tough to say. Obviously, brands, they have a mind of their own, and I expect them to continue to invest in the category to either build their brand equity, market share or just move some of the inventories of raw materials that they have in their system. And so it's hard to say when they would take price adjustments. I can't imagine it's going to be too far out there, but it's hard to say.

是的。這很難說。顯然，品牌有自己的想法，我希望他們繼續在該類別上進行投資，以建立他們的品牌資產、市場份額，或只是轉移他們系統中的一些原材料庫存。因此很難說他們何時會調整價格。我無法想像那裡會太遠，但這很難說。

And also add that the focus we have on -- I'm sorry, yes. And the other focus, obviously, pricing is a big lever that we have, but also reducing our operating costs, our supply efficiencies, is critical, making sure that we streamline our efforts. So we expect a lot of -- some of that margin enhancement to come from just cost reduction initiatives internally.

另外還要補充一點，我們的重點是—抱歉，是的。另一個重點，顯然，定價是我們的一個重要槓桿，但降低我們的營運成本、提高我們的供應效率也是至關重要的，這確保了我們能夠精簡我們的工作。因此，我們預期利潤率的提高很大程度上將來自於內部的成本削減措施。

And then starting up the new lines, like you said, by the end of the fiscal year, will there be any costs associated with that that could create additional margin pressure in the next two quarters to come?

然後，就像您說的，在財政年度結束前啟動新生產線，是否會產生相關成本，從而在未來兩個季度造成額外的利潤壓力？

Yeah. Nick, this is Jasper. Most of the costs that we'll incur with the installation of these new lines will be capitalized. So I wouldn't imagine, other than some moving equipment around and things of that nature, I wouldn't imagine that it would have any impact on margin.

是的。尼克，這是賈斯柏。安裝這些新管道所產生的大部分成本將被資本化。因此，除了一些行動裝置和類似的東西之外，我不會想像它會對利潤產生任何影響。

And then just some more comments around Lakeville, like how this quarter was and everything. Obviously, great quarter, 28% growth there. Just after last quarter's back-to-school issues and everything.

然後是關於萊克維爾的一些評論，例如本季的情況等等。顯然，這是一個偉大的季度，成長率達到 28%。就在上個季度的返校問題和一切事情之後。

Yeah. Lakeville, we had a bunch of one-off expenses in Lakeville, as we're moving inventory out of a third-party warehouse up there into our Huntley facility, we're still carrying a bit of a lease payment on that. That has expired at the end of Q2. We also had to temporarily install some equipment we bought in summer into that Lakeville facility to help build inventories for this year's back-to-school. So there was quite a bit of noise up there.

是的。萊克維爾，我們在萊克維爾有一堆一次性開支，因為我們正在將庫存從那裡的第三方倉庫轉移到我們的亨特利工廠，我們仍然承擔著一些租賃費用。該政策已於第二季末到期。我們還必須將夏天購買的一些設備暫時安裝到萊克維爾工廠，以幫助今年的返校建立庫存。所以那裡相當吵鬧。

I think from an overall operating impact, we are really running that business for service and to build inventory, so we make sure that we hit the back-to-school numbers. So we are incurring quite a bit of overtime in that facility. But we do anticipate, with the installation of the line that we put up there temporarily, coupled with running more production in Elgin, that we'll see that facility become even more profitable than it is.

我認為從整體營運影響來看，我們經營這項業務實際上是為了提供服務和建立庫存，因此我們確保達到返校人數。因此，我們在該工廠的加班時間相當長。但我們確實預計，隨著我們在那裡臨時設立的生產線的安裝，加上埃爾金工廠更多生產的開展，我們將看到該工廠的盈利能力比現在更強。

And then any disclosure on just like what the dollar value -- you talked about the volume growth and everything. Like how -- what was Lakeville's dollar value in the quarter?

然後任何關於美元價值的披露——你談到了銷售成長等等。比如——本季萊克維爾的美元價值是多少？

I think it's in the 10-Q, Nick. But I think it's around $40 million, was the Lakeville-related sales for the quarter.

我認為它在 10-Q 中，尼克。但我認為本季與 Lakeville 相關的銷售額約為 4000 萬美元。

All right. And then I just -- final one just on tariffs. Because in the -- you talked about in your annual report just how you get some of your pecan business from Mexico. So just any thoughts on how it's going to affect the industry, how it affects you if the tariffs do come in?

好的。然後我只是——最後一個關於關稅的問題。因為在年度報告中您談到如何從墨西哥獲得部分山核桃業務。那麼，您認為這將如何影響該行業？如果關稅真的徵收，會對您產生什麼影響？

Well, we're almost at the tail-end of buying this crop. So I don't think even if the tariffs do occur shortly, we would be still buying a lot of products from Mexico.

嗯，我們購買這種作物的進度已經快結束了。因此我認為，即使關稅確實很快實施，我們仍會從墨西哥購買大量產品。

We are working with our procurement teams really across all the supply chain to make sure that we are aware and ready if tariffs do go into place either in Mexico or Canada or any part of the world, just make sure we have the right supply chain in place to overcome any issues that might occur. It is on our radar for sure.

我們正在與整個供應鏈上的採購團隊合作，以確保如果墨西哥、加拿大或世界任何地方徵收關稅，我們都能及時了解並做好準備，確保我們擁有正確的供應鏈來克服可能發生的任何問題。它肯定在我們的關注範圍內。

(Operator Instructions) And at this time, there are no more questions in the queue. I'd like to turn the call back over to Jeffrey for closing remarks. Please go ahead.

（操作員指示）目前，隊列中沒有其他問題。我想將電話轉回給傑弗裡，請他作最後發言。請繼續。

Thank you, Lisa. Again, I want to thank all of you on the call for your interest in JBSS. This concludes the call for our second-quarter fiscal 2025 operating results. And have a great day.

謝謝你，麗莎。再次感謝大家對 JBSS 的關注。這是我們對 2025 財年第二季營運表現的電話會議。祝您有個愉快的一天。

Thank you all for joining today's conference call. You may now disconnect.

感謝大家參加今天的電話會議。您現在可以斷開連線。