Ladies and gentlemen, thank you for standing by. Welcome to the John B. Sanfilippo & Son First Quarter Fiscal Year 2025 Operating Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would like now to turn the conference over to your first speaker today, Jeffrey Sanfilippo, Chief Executive Officer. Sir, please go ahead.

Thank you, Michelle. Good morning, everyone, and welcome to our 2025 first quarter earnings conference call. Thank you for joining us. On the call with me today is Frank Pellegrino, our CFO; and Jasper Sanfilippo, our COO. We may make some forward-looking statements today. 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 our 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. The highlight for this quarter is sales volume increased 24.5% to 91.2 million pounds. We are encouraged by sales volume increases across all 3 of our distribution channels in the first quarter. The consumer distribution channel delivered its strongest quarterly sales volume growth, excluding the impact from the Lakeville acquisition, in the past 8 quarters as the overall core nut and trail mix category continues to stabilize and recover. The category may be challenged by increasing commodity costs and corresponding selling prices in the next few quarters, but we remain optimistic that the strategic pricing actions we initiated last quarter will continue to drive positive momentum in our consumer and distribution channels. In addition to the impact from our strategic pricing actions, our profitability in the quarter was impacted by a onetime concession to a snack bar customer due to capacity constraints at our Lakeville facility. We believe these capacity constraints and increased expenses have been resolved. However, we continue to focus on identifying and implementing cost savings and operational efficiency to enhance our future profitability in Lakeville and across our organization. This is the busy season for our nut and trail mix business. Our…

Thank you, Jeffrey. Starting with the income statement. Net sales for the first quarter of fiscal 2025 increased 18% to $276.2 million compared to net sales of $234.1 million for the first quarter of fiscal 2024. Net sales for the current first quarter included approximately $40.5 million of net sales from the Lakeville acquisition. Excluding the Lakeville acquisition, net sales increased $1.6 million or 0.7% driven by a slight increase in sales volume, which is defined as pounds sold to customers, combined with a slight increase in the weighted average sales price per pound. Sales volume increased 30.8% in the consumer distribution channel primarily due to the Lakeville acquisition whose sales volume is almost exclusively private brand bars. Private brand sales volume increased 36.1%. Excluding the impact of the Lakeville acquisition, sales volume increased 3.4% in the consumer distribution channel primarily due to a 3.9% increase in private brand sales volume. The sales volume increase for our private brands in the consumer distribution channel was mainly driven by new peanut butter distribution and nutrition bar distribution as well as increased volumes of mixed nuts and snack and trail mix at a mass merchandising retailer due to retail pricing adjustments and rotational distributions. Sales volume increased 5.4% for our branded products, which include Fisher recipe nuts, Fisher snack nuts, Orchard Valley Harvest and Southern Style Nuts. The increase in branded sales volume was mainly due to higher sales volume of Southern Style Nuts at a club store as they returned to normalized inventory levels compared to the same quarter last year. Sales volume increased 1.2% in the commercial ingredients channel primarily due to the Lakeville acquisition. Excluding the Lakeville acquisition, sales volume remained relatively unchanged and only decreased 0.6% in the commercial ingredients distribution channel. Sales volume increased 13.3% in the…

Thanks, Frank, for the financial updates. Success requires smart strategies and the right business model for sustainable growth. It also requires a talented and committed group of leaders across the organization. And I believe we have all those elements of success here at JBSS. I'd like to thank all of our team members who have worked tirelessly through this challenging time to take care of our customers and provide great-tasting, innovative products that bring joy, nourish people and protect the planet. I am optimistic our strategic investments and initiatives over the past 3 years will drive future strong operating results and create long-term stockholder value. I'll now share some category and brand results with you for the quarter. To get a broader view of the total market of our categories and to align reporting with a more representative view of the JBS customer base, we are changing our reporting to be on an all-outlet panel basis. As consumer shopping behavior shifts to places like club, e-commerce and specialty stores, we believe this all-outlet view gives us a more comprehensive look at the total category. Additionally, we will begin reporting on brand and private label performance based on our internal shipment data to align with this broader market view. All the information I'll be referring to is Circana panel data, and for today, it is for the period ending September 29, 2024. When I refer to Q1, I'm referring to 13 weeks of the quarter, ending September 29, 2024. References to changes in volume are versus the corresponding period 1 year ago. For pricing commentary, we are using scan data from Circana, which includes food, drug, mass, Walmart, military and other outlets, and we are referring to the average price per pound. We are using the nut, trail mix and snack…

Thank you, Michelle. Again, everyone on the call, I want to thank you for your interest in JBSS. This concludes the call for our first quarter of fiscal 2025 operating results. Have a great Halloween today. Thank you.

This does conclude today's conference call. Thank you for your participation. You may now disconnect.