{"id":753277,"date":"2023-05-01T17:04:35","date_gmt":"2023-05-01T21:04:35","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/jj-snack-foods-reports-record-fiscal-second-quarter-revenue-of-337-9m\/"},"modified":"2023-05-01T17:04:35","modified_gmt":"2023-05-01T21:04:35","slug":"jj-snack-foods-reports-record-fiscal-second-quarter-revenue-of-337-9m","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/jj-snack-foods-reports-record-fiscal-second-quarter-revenue-of-337-9m\/","title":{"rendered":"J&J Snack Foods\u2019 Reports Record Fiscal Second Quarter Revenue of $337.9M"},"content":{"rendered":"

\nGrowth Across All Three Business Segments Leads to Net Earnings\u00a0of $6.9M and EPS of $0.36; Adjusted EPS of $0.43
\n<\/h2>\n
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PENNSAUKEN, N.J., May 01, 2023 (GLOBE NEWSWIRE) — J&J Snack Foods Corp. (NASDAQ: JJSF) (the \u201cCompany\u201d) today reported financial results for the second quarter ended March 25, 2023.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\n Second Quarter<\/strong>\n <\/td>\n<\/tr>\n
\n Actuals<\/strong>\n <\/td>\n\n $ v. LY<\/strong>\n <\/td>\n\n % v. LY<\/strong>\n <\/td>\n<\/tr>\n
\n Net Sales<\/strong>\n <\/td>\n$337.9M<\/td>\n$56.3M<\/td>\n20.0%<\/td>\n<\/tr>\n
\n Operating Income<\/strong>\n <\/td>\n$10.2M<\/td>\n$6.1M<\/td>\n149.3%<\/td>\n<\/tr>\n
\n Net Earnings<\/strong>\n <\/td>\n$6.9M<\/td>\n$3.6M<\/td>\n110.1%<\/td>\n<\/tr>\n
\n Earnings per Diluted Share <\/strong>\n <\/td>\n$0.36<\/td>\n$0.19<\/td>\n111.8%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Adjusted Operating Income<\/strong>\n <\/td>\n$12.1M<\/td>\n$7.4M<\/td>\n157.7%<\/td>\n<\/tr>\n
\n Adjusted EBITDA<\/strong>\n <\/td>\n$27.5M<\/td>\n$9.5M<\/td>\n52.5%<\/td>\n<\/tr>\n
\n Adjusted Earnings per Diluted Share<\/strong>\n <\/td>\n$0.43<\/td>\n$0.24<\/td>\n126.5%<\/td>\n<\/tr>\n<\/table>\n

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\n This press release contains non-GAAP financial measures. Please refer to the Non-GAAP Financial Measures\u00a0<\/em>
\n section below for reconciliations to the most comparable GAAP measures.<\/em>
\n <\/sup>\n <\/p>\n

Dan Fachner, J&J Snack Foods President and CEO, commented, \u201cOur sales this fiscal quarter was the highest second quarter sales in company history, and was driven by strong demand across all three business segments. The quarter benefited from marked improvement in unit volumes for our core brands and products, including strong performances in soft pretzels, churros, frozen novelties and frozen beverages. Higher volumes, combined with the impact of price increases in fiscal 2022, resulted in a 20.0% increase in net sales to $337.9 million. Our Icee frozen beverages segment delivered a strong quarter growing beverage sales approximately 18% through expanded placement, new customers, and a rebounding theater channel. In addition, we are beginning to realize the benefits of our various operational initiatives, resulting in improvement across a number of key performance metrics including distribution expenses and gross margin. These improvements combined with strong sales led to significant growth in adjusted earnings per share.<\/p>\n

\u201cWe continue to build momentum executing our plans and initiatives to grow sales. Our teams are focused on growing our core brands and product categories led by a more disciplined innovation process, targeted marketing strategies and improved execution of cross selling across our portfolio. As an example, we expanded Dippin\u2019 Dots into theaters, launched an Icee Cherry\u2019n Blue Raze Dippin\u2019 Dots product, added the Icee and Slush Puppie pop products to our frozen novelty portfolio, and initiated the roll-out of our SuperPretzel filled knots which will benefit both food service and retail customers. Across our three business segments, we are gaining placement in key channels including theaters, QSR, casual dining and retail, leading to market share gains in our core products. We also continue to build momentum around our Hola! Churros brand with sales up 43% in the quarter and plans to launch this brand into retail later this year.<\/p>\n

\u201cWhile overall inflation has stabilized, we continue to experience year over year pressures on key commodity inputs such as flour, oils, eggs, mixes and sugar. We estimate inflationary impacts of approximately 9% compared to a year ago as commodity prices gradually improve. Despite these continued challenges, we delivered improved gross margins benefiting from our pricing action last year and initiatives to improve cost management and productivity. Operationally, we continued to expand our production capacity and now have five new automated lines supporting growth opportunities in churros, pretzels, and frozen novelties. In addition, we are implementing the geographic optimization of our distribution and warehousing network by consolidating to a handful of locations, including three new state-of-the-art regional distribution centers. The first RDC will open in June in Terrell, Texas while the other two are expected to come online later this year and in early 2024. This aligns with other strategic initiatives announced in fiscal 2022, including the implementation of a new ERP system and outsourcing of our shipping logistics. We expect that these combined initiatives position us for sales growth, improved operational efficiency, reduced distribution costs and an aligned platform to deliver incremental profitability.<\/p>\n

\u201cLooking forward, we are excited about the opportunities in front us. Our sales pipeline is strong, we have the right strategy to improve our operating efficiency and a talented team aligned against our key priorities. In addition, we will continue to rely on our robust balance sheet to strategically invest in attractive growth opportunities. We are doing the right things and taking the right steps to profitably grow our market share while creating added value for our employees, partners, and shareholders.\u201d<\/p>\n

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\n Total Company Second Quarter Highlights<\/u>
\n <\/strong>\n <\/p>\n

Net sales increased 20.0% to $337.9 million in Q2 of fiscal 2023, compared to Q2 of fiscal 2022.<\/p>\n

Key highlights include:<\/p>\n