Overview

• U.S. nut processor's fiscal Q3 net sales rose 8% yr/yr to record high

• Diluted EPS for fiscal Q3 fell 17% yr/yr

• Gross profit and margin declined due to lower inventory valuation adjustments

Outlook

• Company says consumer sentiment shows early signs of stabilizing

• Company notes rising global tensions and supply chain dynamics are contributing to ongoing uncertainty

• Company says it is maintaining a nimble mindset amid market uncertainty

Result Drivers

• HIGHER SELLING PRICES - Net sales growth was driven by an 8.3% increase in weighted average selling price per pound, reflecting pricing actions in response to higher commodity costs and a shift in product mix toward higher-priced items

• CHANNEL MIX - Commercial ingredients and contract manufacturing channels saw double-digit sales volume growth, offsetting declines in the consumer channel

• LOWER INVENTORY VALUATION ADJUSTMENTS - Gross profit and margin declined mainly due to significantly lower inventory valuation adjustments compared to the prior year

Company press release: ID:nBw58V7S3a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Sales	Beat	$281.8 mln	$260.83 mln (1 Analyst)
Q3 EPS		$1.43
Q3 Gross Margin		19.10%

Analyst Coverage

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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