John B Sanfilippo & Son Inc (JBSS) 2025 Q3 法說會逐字稿

Thank you for standing by. My name is Gail, and I will be your operator for today's call. At this time, I would like to welcome each and every one of you to the John B. Sanfilippo & Son, Inc. third quarter fiscal year 2025 operating results conference call.

感謝您的支持。我叫蓋爾，今天我將擔任您的電話接線生。現在，我歡迎大家參加 John B. Sanfilippo & Son, Inc. 2025 財年第三季營運業績電話會議。

(Operator Instructions)

（操作員指示）

It is now my pleasure to turn today's call over to John B. Sanfilippo & Son, Inc. Chief Executive Officer Jeffrey Sanfilippo. Please go ahead.

現在我很高興將今天的電話轉給 John B. Sanfilippo & Son, Inc. 執行長 Jeffrey Sanfilippo。請繼續。

Thank you, Gail. Good morning, everyone, and welcome to our 2025 third quarter earnings conference call. We appreciate you joining us. On the call with me today is Frank Pellegrino, our CFO. We may make some forward-looking statements today.

謝謝你，蓋爾。大家早安，歡迎參加我們 2025 年第三季財報電話會議。感謝您的加入我們。今天與我一起通話的是我們的財務長弗蘭克·佩萊格里諾 (Frank Pellegrino)。我們今天可能會做出一些前瞻性的陳述。

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 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.

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中解釋了可能對結果產生負面影響的因素，包括 10-K 表和 10-Q 表。我們鼓勵您參考這些文件，以了解有關我們業務中固有的風險和不確定性的更多資訊。

I'm encouraged to share the positive results and improvements we've made in our financial performance this quarter. Although, we saw a decrease in sales volume during the third quarter, we improved our gross profit and achieved a 50% increase in diluted earnings per share.

我很高興與大家分享我們本季財務表現所取得的正面成果和進步。儘管第三季銷售量有所下降，但我們的毛利有所提高，每股攤薄收益增加了 50%。

This was driven by, among other things, strategically controlling our costs and the continued alignment of our selling prices with increasing commodity acquisition costs. When we exclude the impact of inventory valuation on the current quarter's gross profit, there is a modest sequential improvement.

推動這項措施的因素包括策略性地控製成本以及持續保持銷售價格與不斷增加的商品採購成本保持一致。當我們排除庫存估價對本季毛利的影響時，我們發現毛利較上月略有改善。

Like other snack food companies, our third quarter performance was impacted by a challenging macroeconomic and consumer environment. The sales volume decline, coupled with the risk of additional declines due to rising retail selling prices and changing consumer behavior, underscores our strategic priority to execute on our long-range plan and adapt our strategies to meet evolving customer needs.

與其他零食公司一樣，我們第三季的業績受到了嚴峻的宏觀經濟和消費環境的影響。銷售量的下降，加上零售價格上漲和消費者行為變化導致的進一步下降的風險，凸顯了我們的戰略重點，即執行我們的長期計劃並調整我們的戰略以滿足不斷變化的客戶需求。

To support this, we are committed to investing in our future growth, planning to spend approximately $90 million on equipment to expand our domestic production capabilities and improve our related infrastructure by the end of fiscal 2026.

為了支持這一點，我們致力於投資於我們未來的成長，並計劃在2026財年末之前投資約9,000萬美元購買設備，以擴大我們的國內生產能力並改善我們的相關基礎設施。

This historic investment in production equipment and infrastructure in our US facilities reflects our confidence in domestic manufacturing. There is a great deal of uncertainty in the market with macroeconomic factors out of our control that may have an impact on our business, but there is so much that we can control within our company to drive efficiencies, deliver innovation, differentiate our products and services and optimize our cost structure.

我們在美國工廠對生產設備和基礎設施的歷史性投資反映了我們對國內製造業的信心。市場存在著很大的不確定性，一些我們無法控制的宏觀經濟因素可能會對我們的業務產生影響，但在公司內部，我們可以控制許多因素，以提高效率、實現創新、使我們的產品和服務與眾不同，並優化我們的成本結構。

The investments we are making demonstrate our commitment to growing our business, being a more valued partner to our customers and providing more job opportunities for the dedicated team members throughout our organization. I would like to thank all our employees who have worked with passion, dedication and a sense of urgency to manage our business through these challenging times.

我們所做的投資顯示了我們致力於發展業務、成為客戶更有價值的合作夥伴以及為整個組織的敬業團隊成員提供更多就業機會。我要感謝我們所有的員工，他們以熱情、奉獻和緊迫感幫助我們度過這些充滿挑戰的時期。

As we face several headwinds impacting the demand for nuts, trail mixes and bars, let me share how our company is responding to mitigate negative impacts on our business while investing in growth. First, there are higher commodity costs for most nuts we procure, including almonds, walnuts, pecans and cashews due to supply and demand volatility.

由於我們面臨影響堅果、混合乾果和能量棒需求的多種不利因素，請允許我分享我們公司如何在投資成長的同時減輕對我們業務的負面影響。首先，由於供需波動，我們購買的大多數堅果（包括杏仁、核桃、山核桃和腰果）的商品成本較高。

And the cocoa market has continued to stay at almost record prices. We are having difficult discussions with our customers to pass on necessary price increases. At the same time, we are offering options to change product formulas, pack sizes and product mixes to mitigate these cost increases.

可可市場價格持續維持在接近歷史最高水準。我們正在與客戶進行艱難的討論，以轉嫁必要的價格上漲。同時，我們提供改變產品配方、包裝尺寸和產品組合的選項，以減輕這些成本增加。

Second, the impact of tariffs, actual pending implementation or threatened by the US government or other governments on our costs and supply chain. There are items such as cashews, pepitas, pine nuts and macadamias that do not grow in the US or have little production here. So most of these items are incurring a 10% tariff today with other products incurring over 140% tariff.

第二，美國政府或其他政府實際上即將實施或威脅實施的關稅對我們的成本和供應鏈的影響。有些農產品，如腰果、南瓜子、松子和澳洲堅果，在美國不生長，或產量很少。因此，目前大多數此類商品的關稅為 10%，其他產品的關稅則超過 140%。

We are working very closely with our major customers to define the financial impact of these costs on their finished products and deciding how best to manage purchases, inventories and potential demand destruction. Our procurement team is doing an extraordinary job looking for alternative suppliers where possible to mitigate supply chain disruptions.

我們正在與主要客戶密切合作，以確定這些成本對其成品的財務影響，並決定如何最好地管理採購、庫存和潛在的需求破壞。我們的採購團隊正在盡力尋找替代供應商，盡可能減輕供應鏈中斷的影響。

Third, changing industry trends as consumers' purchasing preferences evolve. There are so many factors impacting consumers today, including inflation, economic volatility, health and wellness, reduced government support through programs such as SNAP or a variety of other macroeconomic reasons. And even where and how consumers get their information about food has dramatically shifted.

第三，隨著消費者購買偏好的改變，產業趨勢也正在改變。當今影響消費者的因素有很多，包括通貨膨脹、經濟波動、健康和保健、透過 SNAP 等計劃減少政府支持或其他各種宏觀經濟原因。甚至消費者獲取食品資訊的地點和方式也發生了巨大變化。

JBSS has invested heavily in a robust consumer insights team to track consumption, monitor consumer behavior and assess price elasticity models and recommend opportunities for our retail partner to optimize their portfolios with the right products, prices and promotions.

JBSS 投入巨資組建了一支強大的消費者洞察團隊，以追蹤消費、監控消費者行為、評估價格彈性模型，並為我們的零售合作夥伴推薦機會，以合適的產品、價格和促銷來優化他們的投資組合。

These same recommendations from our consumer insights team are also being applied to our brand portfolio, including Fisher snack, Fisher recipe and our Orchard Valley Harvest brand. It is a difficult environment for most brands across the snack category as consumers have tightened their wallets due to current inflationary pressures.

我們的消費者洞察團隊提出的這些建議也應用於我們的品牌組合，包括 Fisher 零食、Fisher 食譜和我們的 Orchard Valley Harvest 品牌。由於當前的通膨壓力，消費者勒緊了錢包，因此對於大多數零食品牌來說，這是一個艱難的環境。

But we continue to focus on expanding distribution, building brand awareness and trial with innovative marketing programs and allocating a portion of the sales to support our partner, Conscious Alliance to health and child hunger.

但我們將繼續致力於擴大分銷，建立品牌知名度，嘗試創新的行銷計劃，並將部分銷售額用於支持我們的合作夥伴 Conscious Alliance 的健康和兒童飢餓問題。

I will now turn the call over to Frank to discuss our financial performance.

現在我將把電話轉給弗蘭克來討論我們的財務表現。

Thank you, Jeffrey. Starting with the income statement. Net sales for the third quarter of fiscal 2025 decreased 4% to $260.9 million compared to net sales of $271.9 million for the third quarter of fiscal 2024. The decrease in net sales was due to a 7.9% decrease in sales volume or pounds sold to customers, which was partially offset by a 4.2% increase in the weighted average sales price per pound. The increase in the weighted average selling price primarily resulted from higher commodity acquisition costs for all major tree nuts.

謝謝你，傑弗裡。從損益表開始。2025 財年第三季淨銷售額為 2.609 億美元，較 2024 財年第三季的 2.719 億美元下降 4%。淨銷售額的下降是由於銷售給客戶的銷售量或磅數下降了 7.9%，但每磅加權平均銷售價格上漲 4.2% 部分抵消了下降。加權平均售價的上漲主要是因為所有主要樹堅果的商品收購成本上升。

Sales volume declined for substantially all major product types in the third quarter. Sales volume decreased 9.2% in the consumer distribution channel, primarily due to an 8.3% decrease in private brand sales volume. The private brand volume decrease was due to a 16% reduction in bars volume, mainly due to reduced sales to a mass merchandising retailer following an increase in bar sales from a national brand recall in the third quarter of fiscal 2024.

第三季度，幾乎所有主要產品類型的銷售量均出現下降。消費者分銷管道的銷量下降了 9.2%，主要原因是自有品牌銷量下降了 8.3%。自有品牌銷售下降是由於酒吧銷量減少了 16%，這主要是因為在 2024 財年第三季度全國品牌召回導致酒吧銷量增加之後，對大眾商品零售商的銷售額減少。

Our strategic decision to reduce sales to a grocery retailer and lost distribution in other grocery retailer further contributed to the decline in bars volume. Additionally, decreases in sales of almonds, snack nuts and trail mix caused by higher retail prices and the discontinuation of peanut butter at the same mass merchandising retailer contributed to the overall reduction in sales volume.

我們做出的減少對一家雜貨零售商的銷售的戰略決策以及失去其他雜貨零售商的分銷權進一步導致了酒吧銷售的下降。此外，由於零售價格上漲以及同一大眾零售商停止銷售花生醬，杏仁、零食堅果和混合乾果的銷售下降，也導致了整體銷售的下降。

These declines were partially mitigated by increased sales of walnuts and pecans at the same retailer, along with new distribution at two grocery store customers. Sales volume decreased 12.9% for our branded products, primarily driven by a 33.8% reduction in Orchard Valley Harvest sales, mainly due to delayed orders from a major customer in the non-food sector.

由於同一家零售商的核桃和山核桃銷售增加，以及兩家雜貨店客戶的新分銷，部分緩解了這些下降的勢頭。我們的品牌產品銷量下降了 12.9%，主要原因是 Orchard Valley Harvest 銷量下降了 33.8%，這主要是由於非食品行業主要客戶的訂單延遲。

Sales volume decreased 8.3% in the commercial ingredients distribution channel, mainly driven by decreased sales volume due to competitive pricing pressures and decreased food service peanut butter sales.

商業配料分銷管道的銷售量下降了 8.3%，主要原因是競爭定價壓力導致的銷售量下降以及食品服務花生醬銷售下降。

Sales volume increased 6% in the contract manufacturing distribution channel, primarily due to increased granola volume processed in our Lakeville facility. Sales to new customers and opportunistic sales to the current customer also contributed to the overall increase.

合約製造分銷管道的銷售量增加了 6%，這主要是由於我們萊克維爾工廠加工的格蘭諾拉麥片數量增加。針對新客戶的銷售和針對現有客戶的機會性銷售也促進了整體成長。

These gains were significantly offset by reduced peanut sales volume from a major customer due to soft consumer demand. Gross profit increased by $6.7 million or 13.7% to $55.9 million compared to the third quarter of last year, driven by inventory valuation adjustments that we anticipated, driven by rising commodity input costs, which may not recur next quarter.

由於消費者需求疲軟，主要客戶的花生銷售量減少，大大抵銷了這些收益。毛利與去年第三季相比增加了 670 萬美元，即 13.7%，達到 5,590 萬美元，這得益於我們預期的庫存估價調整，以及商品投入成本上升，但這種影響可能不會在下個季度再次出現。

The inventory valuation adjustment was primarily driven by a transition from a lower cost to a higher cost crop year for walnuts and pecans. To a lesser extent, gross profit benefited from favorable manufacturing efficiencies. These gains were partially offset by higher commodity acquisition costs for all major tree nuts.

庫存估價調整主要是由於核桃和山核桃作物從低成本年份轉變為高成本年份。在較小程度上，毛利受益於良好的製造效率。這些收益被所有主要樹堅果的商品收購成本上漲部分抵銷。

Third quarter gross profit margin as a percentage of net sales increased to 21.4% compared to 18.1% for the third quarter of fiscal 2024 due to the reasons previously mentioned. Total operating expenses for the third quarter decreased $3.1 million compared to prior year quarter, mainly due to a reduction in incentive compensation expense, which was partially offset by an increase in rent expense from our new Huntley, Illinois facility.

由於前面提到的原因，第三季毛利率佔淨銷售額的百分比從 2024 財年第三季的 18.1% 上升至 21.4%。第三季的總營運費用與去年同期相比減少了 310 萬美元，主要原因是激勵薪酬費用減少，但部分被我們位於伊利諾伊州亨特利的新工廠的租金費用增加所抵消。

Total operating expenses for the third quarter of 2025 decreased to 10.6% of net sales from 11.3% for last year's third quarter due to the reasons previously mentioned and was partially offset by a lower net sales base.

由於前面提到的原因，2025 年第三季的總營運費用從去年第三季的淨銷售額的 11.3% 下降到 10.6%，但部分被較低的淨銷售額基數所抵銷。

Interest expense was $1.1 million for the third quarter of fiscal 2025 compared to $800,000 for the third quarter of fiscal 2024. Net income for the third quarter of fiscal 2025 was $20.2 million or $1.72 per diluted share compared to $13.5 million or $1.15 per diluted share for the third quarter of fiscal 2024.

2025 財年第三季的利息支出為 110 萬美元，而 2024 財年第三季的利息支出為 80 萬美元。2025 財年第三季的淨收入為 2,020 萬美元，即每股攤薄收益 1.72 美元，而 2024 財年第三季的淨收入為 1,350 萬美元，即每股攤薄收益 1.15 美元。

Now taking a look at inventory. The total value of inventories on hand at the end of the current third quarter increased $47.1 million or 22.4% compared to the total value of inventories on hand at the end of the prior year comparable quarter. The increase was mainly due to higher quantities and cost of finished goods, work in process and almonds as well as higher commodity acquisition costs for walnuts and pecans. The weighted average cost per pound of raw nut and dried fruit increased 33.9% year over year, mainly due to higher commodity acquisition costs for almost all major tree nuts.

現在查看庫存。本第三季末庫存總價值與去年同期末庫存總價值相比增加了 4,710 萬美元，增幅為 22.4%。成長的主要原因是成品、在製品和杏仁的數量和成本增加，以及核桃和山核桃的商品收購成本增加。每磅生堅果和乾果的加權平均成本年增 33.9%，主要原因是幾乎所有主要樹堅果的商品收購成本都上漲。

Moving on to year-to-date results. Net sales for the first three quarters of fiscal 2025 increased 5.1% to $838.2 million compared to the first three quarters of fiscal 2024. Excluding the 2025 first quarter impact of the Lakeville acquisition, net sales remained relatively unchanged, rising slightly from [$792.2 million] to $797.7 million.

繼續討論年初至今的業績。2025 財年前三個季度的淨銷售額與 2024 財年前三個季度相比成長 5.1%，達到 8.382 億美元。不計入 Lakeville 收購對 2025 年第一季的影響，淨銷售額基本保持不變，從 [7.922 億美元] 小幅上升至 7.977 億美元。

Sales volume increased 6.7%, primarily due to Lakeville acquisition. Excluding the impact of the Lakeville acquisition, sales volume remained relatively unchanged. Gross profit margin decreased from 20.6% to 18.5% of net sales.

銷售量成長 6.7%，主要由於收購 Lakeville。除去收購 Lakeville 的影響，銷售量基本上維持不變。毛利率從淨銷售額的20.6%下降至18.5%。

The decrease was mainly attributable to increased commodity acquisition costs for substantially all major nuts as well as competitive pricing pressures and strategic pricing decisions, which were offset by factors cited previously and improved profitability on bars due to manufacturing efficiencies.

下降的主要原因是幾乎所有主要堅果的商品採購成本增加，以及競爭性定價壓力和戰略定價決策，但這些被前面提到的因素和由於製造效率提高而導致的酒吧盈利能力提高所抵消。

Total operating expenses for the current year-to-date decreased by $3.5 million to $90.1 million compared to $93.6 million for the first three quarters of fiscal 2024. The decrease in total operating expenses was mainly driven by decreases in incentive compensation, advertising and consumer insight expenses.

本年度迄今的總營運費用為 9,010 萬美元，而 2024 財年前三個季度為 9,360 萬美元，減少了 350 萬美元。總營運費用的下降主要是由於激勵薪酬、廣告和消費者洞察費用的下降。

These decreases were partially offset by a onetime bargain purchase gain from the Lakeville acquisition, which did not repeat in the current year-to-date period as well as increases in salary, wages, freight and rent expenses. Interest expense was $2.3 million for the first three quarters of fiscal 2025 and $2.1 million for the first three quarters of fiscal 2024.

這些減少部分被收購 Lakeville 的一次性廉價購買收益所抵消，而今年迄今為止，這一收益並未重複出現，而且工資、薪水、運費和租金費用也增加了。2025 財年前三個季度的利息支出為 230 萬美元，2024 財年前三個季度的利息支出為 210 萬美元。

Net income for the first three quarters of fiscal 2025 was $45.4 million or $3.87 per diluted share compared to net income of $50.2 million or $4.30 per diluted share for the first three quarters of fiscal 2024. Please refer to our 10-Q for additional details regarding our financial performance for the third quarter of fiscal 2025.

2025 財年前三個季度的淨收入為 4,540 萬美元，即每股攤薄收益 3.87 美元，而 2024 財年前三個季度的淨收入為 5,020 萬美元，即每股攤薄收益 4.30 美元。有關我們 2025 財年第三季財務業績的更多詳細信息，請參閱我們的 10-Q。

Now I'll turn the call over to Jeffrey to provide additional comments on our operating results for the third quarter of fiscal 2025 and discuss category trends.

現在，我將把電話轉給傑弗裡，讓他對我們 2025 財年第三季的經營業績提供更多評論，並討論類別趨勢。

Thanks, Frank. Turning to category updates. I'll share the category and brand results for the quarter. All the market information I'll be referring to is Circana panel data. And for today, it is the period ending March 30, 2025.

謝謝，弗蘭克。轉向類別更新。我將分享本季的類別和品牌業績。我將要參考的所有市場資訊都是 Circana 面板數據。而今天，則是截止到 2025 年 3 月 30 日的這段時間。

When I refer to Q3, I'm referring to 13 weeks of the quarter ending March 30, 2025. 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, and we are referring to average price per pound. We are using the nut, trail mix and bar syndicated views of the category as defined by Circana.

當我提到第三季時，我指的是截至 2025 年 3 月 30 日的季度的 13 週。數量變化是與去年同期相比的。對於價格評論，我們使用了來自 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、混合乾果和能量棒聯合視圖。

In the latest quarter, we continue to see modest growth in the broader snack aisle as defined by Circana. Volume and dollars were up 2% and 3%, respectively. This is consistent with the performance we saw in Q2. In Q3, the snack nut and trail mix category was down 2% in pounds and up 2% in dollars as we saw prices start to rise. This is slightly worse volume performance than we saw in Q2, but similar dollar performance. We saw prices rise 2% in snack nuts and 3% in trail mixes with almonds, mixed nuts and pistachios all showing higher prices.

在最新一個季度，我們繼續看到 Circana 定義的更廣泛的零食貨架出現溫和成長。交易量和金額分別增加了 2% 和 3%。這與我們在第二季看到的表現一致。第三季度，隨著價格開始上漲，零食堅果和混合乾果類別的磅數下降了 2%，美元數上漲了 2%。這比我們在第二季看到的交易量表現略差，但美元表現相似。我們發現零食堅果的價格上漲了 2%，混合乾果的價格上漲了 3%，其中杏仁、混合堅果和開心果的價格均上漲。

Fisher snack and trail mix performed worse than the category, with pound shipments down 17%. This was driven primarily by declines at a major specialty retailer due to inventory changes and not repeating a promotion.

費雪零食和乾果混合物的表現比同類產品更差，出貨量下降了 17%。這主要是由於一家大型專業零售商因庫存變化和不再進行促銷而導致銷售下滑。

On Southern Style Nut brand pound shipments increased 10%, driven primarily by velocity growth in mass and e-commerce. Our Orchard Valley Harvest brand, which primarily plays in trail mix, was down 34% in pound shipments, driven by delayed orders from a specialty retailer. Excluding that customer, pound shipments were actually up 11% with strong growth in club and e-commerce.

Southern Style Nut 品牌的磅出貨量增加了 10%，這主要得益於大眾商務和電子商務的速度成長。我們的 Orchard Valley Harvest 品牌（主要生產混合乾果）的出貨量下降了 34%，原因是專業零售商的訂單延遲。除該客戶外，由於俱樂部和電子商務的強勁增長，英鎊出貨量實際上增長了 11%。

Commodity increases, including cocoa and some tree nuts are resulting in higher prices for Orchard Valley Harvest. We continue to focus on innovation and cost savings opportunities to mitigate the significant commodity pressure.

包括可可和一些樹堅果在內的大宗商品價格上漲，導致 Orchard Valley Harvest 的價格上漲。我們將繼續專注於創新和成本節約機會，以緩解巨大的商品壓力。

Our private label consumer snack and trail shipments performed relatively in line with the category, with pound shipments down 3% versus last year. Now let me turn to the recipe nut category. In Q3, the recipe nut category was down 1% in pounds and up 10% in dollars as prices for both walnut and pecans continue to increase.

我們的自有品牌消費者零食和小道產品的出貨量與同類產品表現相對一致，每磅出貨量與去年相比下降了 3%。現在讓我轉到食譜堅果類別。第三季度，由於核桃和山核桃的價格持續上漲，食譜堅果類別的重量下降了 1%，美元上漲了 10%。

This is an improvement in dollar performance and relatively stable volume performance versus Q2. Our Fisher recipe pound shipments were down 3% in Q3 with volume softness tied to increased costs of our commodities.

與第二季相比，美元表現有所改善，交易量表現也相對穩定。我們的 Fisher 配方磅出貨量在第三季下降了 3%，因為銷售疲軟與我們商品成本的增加有關。

Now let's switch over to the bar category. In Q3, the bars category continued to rebound as a major player continue to re-enter the market after our recall last winter. The category grew 6% in pounds and 8% in dollars.

現在讓我們切換到酒吧類別。第三季度，酒吧類別繼續反彈，因為自去年冬天我們召回以來，主要參與者繼續重新進入市場。該類別以英鎊計算增長了 6%，以美元計算增長了 8%。

Private label was down 1% in pounds and up 2% in dollars as the previously mentioned national brand retook some of the share it lost to private label last year. Our private label bar shipments were down 16% versus a year ago as we lap significant growth after filling empty shelves because of a national brand recall.

自有品牌以英鎊計算下跌了 1%，以美元計算則上漲了 2%，因為前面提到的全國性品牌重新奪回了去年被自有品牌搶走的部分市場份額。由於全國品牌召回事件導致貨架空置，我們的自有品牌巧克力棒出貨量較上年同期下降了 16%，這得益於巧克力棒出貨量的大幅增長。

In closing, as we look ahead, maintaining agility and swiftly adapting to the dynamic external environment is imperative to our business. We continue to monitor the impact and timing of import tariffs on internationally sourced items, which represent approximately 15% to 20% of all our raw material purchases.

最後，展望未來，保持敏捷性並迅速適應動態的外部環境對我們的業務至關重要。我們持續監測進口關稅對國際採購產品的影響和時間，這些產品約占我們所有原料採購的 15% 至 20%。

As I mentioned, items such as cashews, and pepitas do not grow in the United States, and we are proactively working with strategic suppliers to quantify the potential impact of tariffs and develop solutions to manage cost increases while ensuring minimal disruptions to our supply chain.

正如我所提到的，腰果和南瓜子等農產品並不在美國種植，我們正在積極與戰略供應商合作，量化關稅的潛在影響，並製定解決方案來管理成本增加，同時確保對我們的供應鏈的干擾最小。

Additionally, we are collaborating closely with customers to assess the impact of tariffs on retail selling prices and consumer demand and to identify solutions to attempt to mitigate that impact. Furthermore, we will continue to rigorously pursue opportunities to enhance internal efficiencies and drive long-term shareholder value.

此外，我們正在與客戶密切合作，評估關稅對零售價格和消費者需求的影響，並尋找解決方案以減輕這種影響。此外，我們將繼續積極尋求機會提高內部效率並推動長期股東價值。

I am confident in the strategic investments we have made in our people, customers and capabilities to overcome these challenges and deliver strong operating results. Our company and our team of dedicated leaders and associates throughout the organization remains steadfast and strong. We have always adapted quickly to overcome headwinds.

我相信，我們在員工、客戶和能力方面所做的策略性投資能夠克服這些挑戰並取得強勁的經營績效。我們的公司以及整個組織內敬業的領導和同事團隊依然堅定而強大。我們總是能迅速適應並克服困難。

And our insights, innovation, R&D, marketing, sales, operation, finance teams across the organization are focused on consumer behavior, consumption trends to develop new products, pursue opportunities and manage our financial performance and inventory levels.

我們整個組織的洞察、創新、研發、行銷、銷售、營運和財務團隊都專注於消費者行為和消費趨勢，以開發新產品、尋求機會並管理我們的財務表現和庫存水準。

We have the right strategies, talent and commitment to quality and service to continue to grow and provide exceptional value for our customers and our consumers. We appreciate your participation in the call, and thank you for your interest in our company.

我們擁有正確的策略、人才以及對品質和服務的承諾，可以持續發展並為我們的客戶和消費者提供卓越的價值。感謝您參加此電話會議，也感謝您對我們公司的關注。

I will now turn the call back over to Gail to open the line for questions.

現在我將把電話轉回給蓋爾，以便回答問題。

(Operator Instructions)

（操作員指示）

Nick Otton, CWB Wealth.

尼克·奧頓（Nick Otton），CWB Wealth。

Hi guys, Just wanted to start the questions off on the tariff exposure. So for that 15% to 20% raw materials exposure, do you think you'll be able to pass off this cost to your customers just in general because it's everyone in the industry affected?

大家好，我只是想開始問有關關稅風險的問題。那麼，對於 15% 到 20% 的原物料風險，您是否認為您可以將這筆成本轉嫁給您的客戶，因為整個產業都會受到影響？

Yeah. So everyone is affected in the industry. We are focused on the main commodities that drive the biggest value in tariffs. Those are -- there's three or four key items, key customers that those impact. So we're having discussions today or we've had discussions with our customers about when those increases impact their finished goods on the shelf.

是的。因此，這個行業中的每個人都受到了影響。我們重點關注對關稅產生最大影響的主要商品。這些是——有三到四個關鍵項目，它們會影響關鍵客戶。因此，我們今天正在討論，或者我們已經與客戶討論過這些成長何時會影響他們貨架上的成品。

And so we will work to pass on those tariffs with our key customers. Some of the smaller items where it's less than a 10% increase on finished goods, we will see about optimizing kind of production, managing inventory on those. But the key items that have the most volume and value, those will have passed on increases to customers.

因此，我們將努力將這些關稅轉嫁給我們的主要客戶。對於一些較小的產品，其成品增幅不到 10%，我們將考慮優化生產方式並管理庫存。但數量最多、價值最高的那些關鍵商品的價格上漲將會轉嫁給顧客。

So like if that 46% comes back overall, you'll pass it on for Vietnam, for example.

因此，如果總體上恢復 46%，那麼就會將其傳遞給越南。

Correct.

正確的。

And then I guess on your cash used business, like just trying to do some rough math last night after your release, like -- it kind of looks like it's a breakeven business. Is that fair to say? Or is it like what's the kind of earnings in that area overall?

然後我猜想，對於你的現金使用業務，就像昨晚你獲釋後試圖做一些粗略的計算一樣——它看起來像是一項收支平衡的業務。這樣說公平嗎？或者該地區的整體收入情況如何？

Which commodity -- sorry, was that cashews?

哪一種商品──抱歉，是腰果嗎？

Yeah, your cashews and mixed nuts segment.

是的，您的腰果和混合堅果部分。

No, it's a profitable segment. I think if the 46% tariffs come across that, that would be a challenge to one, to get those price increases through and then the impact to consumer demand will be dramatic. But currently, cashews and mixed nuts are consistent with our overall profit.

不，這是一個有利可圖的部分。我認為，如果 46% 的關稅真的實施，那麼對於一個國家來說，提高價格是一個挑戰，對消費者需求的影響將是巨大的。但目前腰果和混合堅果與我們的整體利潤一致。

I would add. So over the last couple of years, since cashew prices came down to almost historic lows, we did see growth in the cashew segment in the snack category. I think with these higher prices that are even separate from the tariffs, just the commodity supply and demand, we've seen increase in cashews.

我想補充一下。因此，在過去幾年裡，由於腰果價格降至歷史最低水平，我們確實看到零食類別中腰果部分的增長。我認為，即使不考慮關稅因素，價格上漲，僅考慮商品的供需關係，我們就會看到腰果價格上漲。

I think you'll see a shift in consumption away from cashews to almonds, peanuts and some of the other lower-priced retail products, but still profitable item for us. But as Frank said, with these increases in tariffs, potentially, you could see more demand destruction as we do pass those increases on.

我認為你會看到消費從腰果轉向杏仁、花生和其他一些價格較低但對我們來說仍然是有利可圖的零售產品。但正如弗蘭克所說，隨著關稅的增加，隨著我們轉嫁這些增加的關稅，你可能會看到更多的需求破壞。

And then is there -- if you can't pass them on, would you just get out of the cashew business overall?

那麼，如果您無法將它們傳承下去，您是否會徹底退出腰果業務？

So it's still a big piece of the business. I don't know if we would get out of it completely. I will say if these higher tariffs do hit, just like we're having conversations with key retailers today at pepitas, that come mainly from China with a 145% increase. Those discussions are taking place when those potential increases hit finished goods in July, August.

所以它仍然是業務的重要組成部分。我不知道我們是否能完全擺脫它。我想說的是，如果這些更高的關稅真的實施，就像我們今天與 Pepitas 的主要零售商進行的對話一樣，主要來自中國的商品關稅將上漲 145%。這些討論是在 7 月和 8 月潛在漲價影響成品的時候進行的。

So the questions are whether the retailers will still continue those items or hold off and wait until prices come back down and just not have them available on the shelf. We have seen some retailers that are doing just that. That's a straight pepita item that is sold at retail. Those -- some of those retailers are saying, let's just not buy the item and wait until those markets come down again.

所以問題是零售商是否還會繼續銷售這些商品，還是等到價格回落後再出售，而不將它們上架。我們看到一些零售商正在這樣做。這是一種直接在零售店出售的南瓜子製品。有些零售商說，我們還是不要買這些商品吧，等到市場又下滑。

And Nick, one add-on to cashews, if the 45% or so tariffs from Vietnam do come back, like Jeffrey said, consumer demand would decline, which will result in the underlying cashew price has to decline because of the lower demand. So in theory, some of the increase due to the tariff will be offset by a lower commodity cost of the underlying cashew.

尼克，對於腰果，還有一個補充，如果越南 45% 左右的關稅真的恢復，就像傑弗裡說的，消費者需求就會下降，這將導致腰果價格因需求下降而下降。因此，從理論上講，關稅導致的部分漲幅將被腰果商品成本的降低所抵消。

And then would you just be set up to like you could capture this back though where like you said, consumers buy more peanuts, pecans, walnuts, something like that as well?

然後，您是否可以採取措施收回這些收入，就像您所說的那樣，消費者會購買更多的花生、山核桃、核桃等類似的東西？

I guess, would switch to that.

我想，會切換到那個。

Yeah, we anticipate --

是的，我們預計--

Just for myself, so I have some understanding, just on the inventory transition that you discussed. So do you still expect to be in that $0.60 per pound gross margin level range in the next quarter and going forward with the price increases that you put in place?

就我個人而言，我對您所討論的庫存轉型有一些了解。那麼，您是否仍預計下個季度的毛利率將保持在每磅 0.60 美元的水平，並且會繼續實施您實施的價格上漲？

The price increases went in place during the current quarter. I think, Nick, the best way to look at it is if you look at our gross profit section, if you just back out the impact of the inventory valuation, which we cited in the release in the Q, and that should be a good indication of what our gross profit per pound should be going forward.

本季價格已上漲。尼克，我認為看待這個問題的最好方式是，如果你看一下我們的毛利部分，如果你只是退出庫存估價的影響（我們在 Q 的發布中提到過），這應該可以很好地表明我們每磅的毛利潤未來應該是多少。

Okay. And then that $90 million spend, is that the addition of like two more bar lines to your bar business overall?

好的。那麼，花費的 9000 萬美元是否意味著您的酒吧業務整體上又增加了兩條酒吧線？

Yeah, so Nick good question. It's a big investment we're making. It's a combination of things. So we do believe there's opportunity for growth in the bar category. So some of that $90 million is going towards bar infrastructure.

是的，尼克，你問得好。這是我們正在進行的一項重大投資。這是多種因素的綜合。所以我們確實相信酒吧類別有成長的機會。因此，這 9000 萬美元中的一部分將用於酒吧基礎設施建設。

As we talked about in previous calls, we moved our warehouse distribution center to Huntley, Illinois just down the street to free up space in our Elgin headquarters to expand production. So a big chunk of that will go to expanding bar capabilities, but also other parts of our business to expand production capacity.

正如我們在之前的電話會議中談到的那樣，我們將倉庫配送中心搬到了伊利諾伊州亨特利的街對面，以騰出埃爾金總部的空間來擴大生產。因此，其中很大一部分將用於擴大酒吧產能，同時也將用於擴大我們業務的其他部分的生產能力。

I was just wondering too, like you're comped on incremental capital at 10%. So I was wondering, is that the hurdle rate? Or what's the underwriting return that you're expecting on that investment?

我也想知道，您是否獲得了 10% 的增量資本補償。所以我想知道，這就是最低收益率嗎？或者您期望該投資的承保回報是多少？

That's correct. 10% is the correct number used.

沒錯。 10% 是正確的數字。

All right. And then I guess on bars, if we exclude that impact from the one producer just being out of the market for a bit, like how did bars perform overall? Did they grow? Were they flat without this effect? I was just wondering getting down to it.

好的。然後我想，對於酒吧來說，如果我們排除某個生產商暫時退出市場的影響，酒吧的整體表現如何？它們長大了嗎？如果沒有這種效果，它們還是平的嗎？我只是想弄清楚這一點。

So the exciting news is as we took on some of the -- as private label share grew within the category because of that recall, we have seen a lot of that stick. So private label has definitely gained market share within the category, which we're excited to see. So it's quite substantial, too. The recall lasted a long time. So consumers, in some cases, had no choice but to buy private label.

因此，令人興奮的消息是，隨著我們承擔一些責任——由於那次召回，自有品牌的份額在該類別中增長，我們看到了很多這樣的堅持。因此，自有品牌在該類別中肯定獲得了市場份額，我們很高興看到這一點。所以這也是相當重要的。這次召回持續了很長一段時間。因此，在某些情況下，消費者別無選擇，只能購買自有品牌。

But once they were in it, they saw the quality, the value proposition. A lot of those consumers have stayed with private label. And with this changing economy and the volatility in the market today, we're seeing a lot of consumers not only stay in private label, but shift to private label for those lower retail price goods.

但一旦他們加入其中，他們就看到了其品質和價值主張。許多消費者一直堅持購買自有品牌。隨著當今經濟的變化和市場的波動，我們看到許多消費者不僅堅持使用自有品牌，而且轉向購買那些零售價格較低的自有品牌商品。

All right. Thanks guys. Great quarter. Thanks, I don't have any more questions.

好的。謝謝大家。很棒的一個季度。謝謝，我沒有其他問題了。

Thanks, Nick.

謝謝，尼克。

Thank you, Nick.

謝謝你，尼克。

(Operator Instructions)

（操作員指示）

[Ronald Metherko, Private Investor]

[Ronald Metherko，私人投資者]

Thank you. Hey guys, Good quarter and managing through a difficult time. Just one quick one in regards to inventory. So I guess, A and B. One -- the first one is, are you seeing any light at the end of the tunnel in terms of price or cost increases for many of the nets out there outside of the tariff issues? And then number two is the increase in pounds -- in price per pound. Is that telling us anything outside of seasonality?

謝謝。嘿，大家好，本季表現良好，並度過了一段困難時期。關於庫存，我只想簡單說一點。所以我猜是 A 和 B。第一——第一個問題是，除了關稅問題之外，您是否看到許多網路在價格或成本上漲方面有任何曙光？第二個是磅數的增加－每磅價格的增加。這是否告訴我們一些與季節性無關的事情？

Sure. So I'll cover the first question, Ronald. As far as commodities. So we have seen stability in some of the markets. So cashews, for example, actually came down a little bit since they hit historic highs. We've seen some stability there.

當然。所以我來回答第一個問題，羅納德。就商品而言。因此，我們看到一些市場趨於穩定。以腰果為例，自從達到歷史最高點以來，其價格實際上有所下降。我們看到那裡出現了一些穩定跡象。

And I believe with the demand destruction that we're going to see with these high retail prices, we should expect some of those commodity prices to come down further. I would say the same for potentially almonds and some of the other commodities. These higher retail prices, which were passed on in January, there'll be additional increases in June, July time period. Those retail prices will get tough for some consumers. So we should expect some of those commodity costs to come down as a result of lower demand.

我相信，隨著零售價格高企造成需求破壞，我們應該預期部分商品價格將進一步下降。對於杏仁和其他一些商品，我想說的也是同樣的話。一月已經調漲了零售價格，六月、七月還會進一步調漲。這些零售價格對某些消費者來說可能難以負擔。因此，我們應該預期部分商品成本會因需求下降而下降。

Right. I guess and that has been part of the strategy. And just to sneak another one in before part B question gets answered. So am I to understand or we to understand, I think Nick asked questions about like gross margin in the near term. And we're looking at 18.5%, which was ex the IVA to be like what you're shooting for.

正確的。我想，這已經成為戰略的一部分。在回答 B 部分問題之前，先偷偷地再問一個。那我應該理解還是我們應該理解，我認為尼克問的是有關近期毛利率的問題。我們正在考慮 18.5%，這是扣除增值稅後的目標，就像您所追求的那樣。

That's on the ballpark. I mean on yes.

這是大致的情況。我的意思是，是的。

Okay. Thank you.

好的。謝謝。

And then you're for your question.

然後您就可以回答您的問題了。

Yep. Thanks.

是的。謝謝。

Yeah. Inventory -- increase in inventory is probably driven by two or three main reasons. One, we have an increase in WIP and finished goods. We will sell through that in Q4. As you saw with our volume, we had some soft volume at the back half of the quarter. So that inventory was produced and now we will sell through that inventory in the first couple of months of Q4.

是的。庫存－庫存增加可能由兩三個主要原因造成。一是我們的在製品和成品有所增加。我們將在第四季銷售完畢。正如您從我們的交易量中看到的，本季後半段的交易量有些疲軟。因此，庫存已經生產出來，現在我們將在第四季的前幾個月銷售這些庫存。

And then the overall increase in inventory is mainly driven by a mix. The crops that we procure from the sellers, the walnuts and pecans, we saw an increase in acquisition cost. And that crop, we maintain inventory for 9 to 12 months until the next harvest. So that's driving the increase in inventory cost and value because the crops that we don't turn in a month are increasing.

整體庫存增加主要由多種因素推動。我們從賣家購買的農作物，核桃和山核桃，收購成本增加。對於這些作物，我們將其庫存保存 9 到 12 個月，直到下次收穫。因此，這推動了庫存成本和價值的增加，因為我們一個月內未交的農作物正在增加。

Okay. Good. And any thoughts on moving into the -- well, I guess, the larger quarters, the seasonally larger quarters are actually not necessarily imminent. So -- but do you have any like further updates on strategy going forward on -- outside of like what you've mentioned on CapEx?

好的。好的。關於進入——嗯，我想，更大的季度，季節性更大的季度，任何想法實際上不一定迫在眉睫。那麼 - 除了您提到的資本支出之外，您對未來的策略還有什麼進一步的更新嗎？

Yeah. So strategically, we're actually working on holiday programs right now, just building up promotional programs. Pricing, obviously, I mentioned, will be redone in June, July. And so really, the strategy is just to get through some of the volatility in the market, make sure that we have the right price points out there for consumers, the right product mix where if things change and the economy changes dramatically, we've got the right products on the shelf that consumers can still buy. Strategically, the investment in the bar category is important.

是的。因此從策略上講，我們現在實際上正在製定假日計劃，建立促銷計劃。顯然，我提到過，定價將在六月、七月重新制定。所以，我們的策略實際上只是為了應對市場波動，確保我們為消費者提供合適的價格點和合適的產品組合，這樣，如果情況發生變化，經濟發生巨大變化，我們仍然有消費者可以購買的合適的產品。從策略上來說，對酒吧類別的投資非常重要。

We're going to continue with that. We believe there's a lot of growth and white space in the bar category, especially for private label. And then M&A, obviously, always looking at it. Nothing has come up, but we're always in the -- it's always part of our strategic plan to see where we can participate in other categories and apply our competitive advantage and differentiation in manufacturing to other categories.

我們將繼續這樣做。我們相信，酒吧類別有很大的成長空間和空白，尤其是自有品牌。然後是併購，顯然，我們一直在關注它。什麼也沒有發生，但我們始終在——這始終是我們戰略計劃的一部分，看看我們可以在哪些方面參與其他類別，並將我們的競爭優勢和製造差異化應用到其他類別。

Okay. That's it. Good. Thanks. Thanks, Jeff. Thanks, Frank. Good luck.

好的。就是這樣。好的。謝謝。謝謝，傑夫。謝謝，弗蘭克。祝你好運。

Thanks, Ronald.

謝謝，羅納德。

One left. Sorry for that. That concludes our Q&A session for today. I will now turn the call over back to Jeffrey Sanfilippo. Please go ahead.

剩下一個。很抱歉。今天的問答環節到此結束。現在我將把電話轉回給 Jeffrey Sanfilippo。請繼續。

Thanks, Gail. So I appreciate everyone's participation on the call today. Thank you for the smart questions. These are volatile times, and we know what to do. We know what needs to be done throughout our organization to continue to provide shareholder value and value for our customers and consumers. So appreciate your interest in JBSS, and have a great day.

謝謝，蓋爾。所以我感謝大家今天參加電話會議。感謝您提出的這些聰明的問題。這是一個動盪的時期，我們知道該做什麼。我們知道整個組織需要做什麼才能繼續為股東以及我們的客戶和消費者提供價值。非常感謝您對 JBSS 的關注，祝您有個愉快的一天。

Thank you, everyone. That includes today's call. You may not all disconnect. Have a nice day, everyone.

謝謝大家。其中包括今天的電話。你們可能不會全部斷開連線。祝大家有愉快的一天。