Shares declined 9.3% as investors reacted negatively to margin compression driven by higher costs and operational inefficiencies, coupled with cautious near-term outlook concerns.
- Fourth quarter net sales rose 4.2% to $280.4 million, supported by a 2.8% price increase and a 1.4% volume gain.
- Gross profit declined 9.5% to $44.1 million; gross margin fell to 15.7% from 18.1% due to higher input costs, customer claims, recall expenses, and freight.
- Increased manufacturing inefficiencies related to onboarding a large contract manufacturing customer negatively impacted profitability.
- Operating expenses rose $3.1 million, driven by higher incentives, freight, and marketing expenses.
- Management flagged ongoing cost volatility and prioritized restoring snack nut category volume, expanding bar capacity, and driving productivity improvements going forward.
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