ELGIN, Ill. - John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS), a renowned processor and distributor of nut and dried fruit-based products, has announced the declaration of a special cash dividend and an increase in its annual cash dividend. The company's Board of Directors has approved a special dividend of $1.25 per share and an annual dividend of $0.85 per share for both its Common Stock and Class A Common Stock.
The combined dividend distribution, amounting to approximately $24.6 million, is scheduled for payment on September 11, 2024, to shareholders on record as of August 20, 2024. This move marks the seventh consecutive year that the company has increased its annual dividend, with this year's increase being $0.05 per share over the previous year.
Jeffrey T. Sanfilippo, Chairman and Chief Executive Officer of the company, expressed satisfaction with the financial performance over the first three quarters of fiscal 2024, which has enabled the return of value to shareholders through these dividends. He attributed the possibility of declaring the special dividend and raising the annual dividend to the diligent efforts of the company's employees.
The Illinois-based company is known for its various brands, including Fisher®, Orchard Valley Harvest®, Squirrel Brand®, Southern Style Nuts®, and Just the Cheese®. It operates in the snack food sector, providing a variety of products to consumers.
The news release also contained forward-looking statements, cautioning that actual results could vary due to various risks and uncertainties. The company emphasized that it does not undertake any obligation to update these statements as a result of new information or future events, except as required by law.
This dividend announcement is based on a press release statement from John B. Sanfilippo & Son, Inc. and reflects the company's current financial health and commitment to shareholder returns.
In other recent news, John B. Sanfilippo & Son reported a significant increase in sales volume and net sales for the third quarter of fiscal year 2024, largely due to the impact of the Lakeville acquisition. The company's CEO, Jeffrey Sanfilippo, noted an 18.1 million pound increase in sales volume and a $46.9 million rise in net sales, marking a growth of 24.1% and 19.7% respectively from the same quarter in the previous fiscal year. Despite facing challenges in the snack brands sector, the company managed to test price changes successfully and expressed optimism for the fourth quarter and fiscal 2025.
The Board of Directors approved a special cash dividend, signaling confidence in the company's financial health. The company's net income for the first three quarters reached $50.2 million, or $4.30 per diluted share. Amidst the recent developments, the Lakeville acquisition is expected to continue contributing positively to operating results in the coming quarters.
Furthermore, the company is focusing on optimizing operations, expanding product offerings, and exploring new sales opportunities. Despite a challenging environment causing consumers to tighten their budgets, the company achieved initial success with price changes at a major retailer and is expanding distribution and brand awareness to counteract these challenges. These are some of the latest developments in the company's journey.
InvestingPro Insights
As John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) showcases its commitment to shareholder returns with the declaration of a special cash dividend and an increase in its annual cash dividend, the company's financial stability and future prospects can be further illuminated by recent data and insights from InvestingPro.
InvestingPro data reveals that the company holds a Market Cap of approximately $1.13 billion and maintains a Price-to-Earnings (P/E) Ratio of 17.49, suggesting a reasonable valuation in the market. Additionally, the P/E Ratio adjusted for the last twelve months as of Q3 2024 stands at 17.92, providing a consistent picture of the company's earnings relative to its share price.
From a profitability standpoint, the company has reported a Gross Profit Margin of 21.22% for the same period. This metric, combined with a stable Operating Income Margin of 8.46%, reflects the company's effective management in generating earnings from its operations.
Two notable InvestingPro Tips for JBSS include the company's ability to comfortably cover its interest payments with its cash flows, as well as its position of having liquid assets that exceed short-term obligations. These indicators highlight the company's solid financial footing and its capability to manage its debt prudently.
For investors looking for deeper insights and additional metrics, there are more InvestingPro Tips available, which can be explored by visiting the dedicated page for JBSS at https://www.investing.com/pro/JBSS. With the use of the exclusive coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of information to inform their investment decisions.
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