Good morning. Our next presenting company is John B. Sanfilippo, ticker JBSS on the NASDAQ. I think we're a 104-year-old company at this point right now. It's currently being run by the fourth generation of the Sanfilippo family. JBSS is a client of Three Part, so anybody that is in the room or listening on the webcast, if you'd like to follow up and speak with the company, please feel free to reach out to us. Here today to present on behalf of the company is Mike Finn, the company's Controller. The floor is yours, Mike.
Thank you, John. Good morning, everybody. Let me work this thing here. Before I get started, I just want to let you know, I may make some forward-looking statements. These are not guarantees of future performance, they're just my opinion. As John noted, we're a fourth-generation, family-managed public company in our 104th year of business. We are a vertically integrated company in the peanut, pecan, and walnut nuts. We've been delivering consistent and profitable growth. We offer a complete portfolio of recipe and snack nuts, trail mix, snack bars, and confection. We're one of the largest nut processors in the U.S., with over $1 billion in net sales. Where are we located? We have five high-capacity, state-of-the-art manufacturing locations. Our nut-shelling plants are located in prime nut-growing regions to help ensure freshness and quality.
That would be in the California region for our walnuts, the Texas region for pecans, and Georgia for peanuts. We have extensive nut and trail mix capabilities, 75+ processing lines and enrobing lines, 40 packaging lines, and six different packaging formats. We recently got into the bar business, and we have nine processing lines and three packaging formats. We also have extensive commodity procurement expertise, which is critical because there's no futures or hedging for the nut commodities. Like I mentioned, we offer a full portfolio of nut types. Snack and trail mix represent about 25% of our sales, and we have capabilities to meet customers' demand for customized and unique product formulations. As you can see here, we have strong financial performance. These are 10-year compound annual growth rate percentages. Volume has increased almost 4% CAGR for the last 10 years.
Our EPS has grown almost 7%. Margins, gross profit, and operating income have grown, and our stock price has grown almost 8% over the last 10 years. Our EBIT is also growing, with over $100 million for the last four years, and most likely for the current fiscal year as well. Our EBIT per pound sold has been growing. However, product mix in the last several years has brought that down slightly. As far as dividends and returning cash to shareholders, we've had a dividend policy for the last nine years, and we've increased that for $0.05 each year. We've also paid a special dividend of approximately $2.80 each year. Capital expenditure-wise, we invest $20 million-$30 million a year in the business, with fiscal 2025 at almost $51 million, and current year we're at about $70 million through three quarters. We expect 2026 CapEx to be approximately $95 million.
We have a strong foundation and demonstrate success here. Our working capital has increased 27%, and that's driven by commodity acquisition costs as well as more inventory with the business we've acquired. Debt to EBITDA has decreased significantly. Debt to equity has come down, and return on equity has increased approximately 35%. Moving on to current year financial highlights. Net sales have increased approximately 7%. Volume is the only thing that's negative here, and that's down 3.7%. That's similar to what a lot of CPG companies have experienced. All other indicators here are positive. Diving a little deeper into our 2025 results. You can see it with the blue part of this chart here that our consumer channel sales have increased from 60% of our business to 82% of our business.
That was a conscious decision that we've made to increase profitability and to mitigate risk. Our consumer sales channel is our largest channel. We had $907 million of sales, and that grew 4% versus the previous year. The drivers here were our private label growth and our bars. We've had significant e-commerce growth, approximately 15%, with customers like Amazon and Walmart.com. We've had some club wins with our OVH brand. Commercial ingredients is down approximately 1%. We lost some volume there due to competitive pricing pressures. This is just a business priority of JBSS to focus on this. Our last channel, contract manufacturing, that increased 8%. This was driven by bulk granola sales to a customer that experienced a recall, as well as new national brand trail mixes.
This eye chart here shows the relationship between our gross margin, which are the vertical bars, and then the average costs of our main commodities, which are the horizontal colors. You can see that although nut prices are volatile, in recent years, we've still delivered consistent gross profit. That's ranged from about 18.5%-21%. This is a trend of the retail nut category. You could see the dollar sales have increased, and that's really driven by price per pound. This increased price per pound has driven down consumption since approximately fiscal 2022, when we saw inflation spike. Similarly, in the bar category, dollar sales have grown and price per pound has grown, but they're experiencing increased sales as well. This is where we're seeing and planning for our growth. This is our mission and what matters most.
Our mission is that we're nuts about creating real food that brings joy, nourishes people, and protects the planet. These are our three pillars. These are what we focus on. Expanding our consumer reach, creating value with key customers, and growing our brands. Some key accomplishments in fiscal 2025, again, like I mentioned, growth in e-commerce. We expanded customer reach in our commercial ingredients channel by expanding distribution to front-of-house sellers such as hospitality, schools, healthcare. We had some success in our commercial ingredients channel. We're the exclusive supplier of a nut butter, and we've grown our OVH brand. Fisher Recipe Nuts, this is our largest branded item. We did have a little bit of sales decrease, and that was just due to some competitor actions. From a dollar perspective in the current year, that's recovered. Our velocity is a healthy 43%.
Our OVH brand, after exiting a non-strategic customer, dollar sales and pound sales have increased. This is driven by new products as well as a packaging refresh that we just did. Again, healthy ACV at almost 47%. This is our business at a top line, top level. We're 83% private label and 17% branded. Of our branded products, Fisher Snack and Fisher Recipe are two-thirds of that, with OVH being 21%. The private label nut and trail business has seen some contraction, and that's again due to less dollars in customers' pockets. However, bars has seen an increase, 12% increase last year, 2.8% in 2025. JBSS is right there at 27% growth year-over-year as we just got into this market segment. This is what our long-term strategy is based on. Our outlook for snack nut and trail is flat to maybe declining.
The demographics are older and there's a limited opportunity to grow in the private label space. However, in the bar business, the growth outlook is very favorable, younger demographics and significant room for private label growth. Our plan is to maintain our private label snack and trail mix leadership while driving private label bar share growth. On the left side here, you can see the private label snack nut and trail is 55% of sales in the grocery stores. Typically, that's 17% for general food, 17%-20% is where the grocers like to be. Snack bars and granola bars are only 12%. Our bet is to grow that 12% several percentage points up. On the right side here, you can see the private label bars, again, growing from approximately 10% to almost 12% in a few years.
If we continue with that trend, our new bar lines will be at capacity. Focusing in here on the bar category, it's a $9.4 billion category. Nutrition bars, which are the higher profit bars, are a little more than half of that. Mainstream bars, about 30%. Our portfolio has grown 24%. It's mostly mainstream bars, and we're focusing on growing the nutrition and kid-friendly bars because that's where the profit is. You can see on the right here, we've made significant investments. We have three bar lines, and that's going to help us to grow the business. We're also adding capabilities like protein and fig.
Again, our long-term growth pillars are to accelerate private label bars growth with that expanded capacity, maintain our private label nut and trail business, and then selectively invest in our brands as we have a much better control of the profit there. This is just our reconciliation to EBITDA. Those are my prepared remarks, but I'm happy to take any questions that you have. Yes, sir.
Do you have any international ambitions because of demographics?
We were in the international space several years ago. We got out of it, we're mostly just domestic-based. We don't have any plans right now to grow any more internationally. Yes.
Are there other things you're looking to acquire more in the bar area? Happy with what you have? Are there other acquisitions always part of the capital allocation?
Acquisitions are always something that we consider if it's the right fit or if it's like an adjacent category. I don't think there's a plan to grow through acquisitions in the bar business, at least until we get our capacity filled.
More penetration in existing channels, new channels towards bar business growth?
Yes. As far as we want to get them into club stores. We'd love to do some co-manning of bars for other companies. Yes.
Sorry, one more.
Yeah, absolutely.
When you comment the consumer products in general, you said like the sales are down for that and kind of restaurants also are kind of flattish. They're down. What is maybe going on? Is it because pricing is not good across the consumer discretionary eating board? What's going on if everyone's kind of down?
I think inflation has a lot to blame for that. There's just less money in consumers' pockets, right? School loan repayments have started back up. Some government benefits have been decreased. I think it's just a combination of all those things that people are either buying the cheaper snacks or leaving the snack aisle altogether.
Thanks.
Yeah, you're welcome. Okay. Well, thank you, everybody. Oh, yes, sir.
Any work being done in the different nut varieties or new types of nuts?
We're in just about every nut that's out there. There's not a whole lot of new innovation in the trail mix category.
I'm thinking more in terms of genetics. Plant genetics.
I think everyone wants non-GMO. Yes.
They want non-GMO in the United States?
Right. I mean, things are moving in that direction. Yeah.
There's some different flavor profiles or whatnot that you can do with -
Oh.
... nuts and mixes, yeah.
We're always working on flavor profiles, yes. Yes.
The nut butter category, does that offer anything to you?
It does. We are seeing success in the peanut butter and cashew butter category. The customer that I mentioned in my presentation, think about smoothies now that are high in protein. We're seeing a lot of success in that area.
That's all either private label or industrial?
Yes, both.
Okay.
Yes.
You don't have any plans for your own brand?
I mean, we do have Fisher Peanut Butter. We do have our own branded peanut butter. Yes. Okay. Thank you, everybody.