J&J Snack Foods’ First Quarter Net Sales Increase 32% leading to EPS of $0.58

About this update from J & J Snack Foods Corp.

[{"type":"text","content":"PENNSAUKEN, N.J., Jan. 31, 2022 (GLOBE NEWSWIRE) -- J&J Snack Foods Corp. (NASDAQ: JJSF) today reported financial results for the first quarter ended December 25, 2021. First QuarterActuals% v. LY Net Sales$318.5M32.2%Operating Income$14.8M2468%Net Earnings$11.1M524%Earnings per Diluted Share (EPS)$0.58520% Dan Fachner, J&J Snack Foods President and CEO, commented, “Our first quarter fiscal 2022 results reflect a continuation of positive consumer trends and healthy demand for our products even as the spread and impact of Covid-19 accelerated throughout the quarter. Net sales increased 32% year-over-year and by 17% versus the same period in fiscal 2019, led by strong results from our core products including pretzels and churros, frozen novelties, as well as sales exceeding pre-pandemic levels in our frozen beverages segment. The Food Service segment grew 32%, compared to the prior year period, while the Retail and Frozen Beverages segments grew 9% and 54%, respectively. Overall, our first quarter sales performance demonstrates ongoing strength and our belief of the tremendous growth potential of our business in both the near- and long-term as we move deeper into a post-pandemic recovery.” “As was the case last quarter, our industry continues to experience unprecedented inflationary pressures and higher-than-expected cost increases across many facets of the business, from raw materials and ingredients, to transportation, packaging and labor. First quarter fiscal 2022 gross margin was 25%, favorably comparing to 21% for the prior year, but below the 28% gross margin generated in the comparable 2019 period. Our organization continues to focus on specific actions to offset the short-term cost challenges and we have identified a number of opportunities to reduce expenses across our business, including procurement, R&D, production and distribution. In addition, we have four new production lines scheduled to be activated in fiscal 2022 that will leverage automation to improve efficiencies. Finally, we are also implementing additional price increases for our products across nearly all of our categories. Collectively, we expect these initiatives to improve our gross margins progressively over the second quarter of fiscal 2022 and into the back-half of the fiscal year.” \"With a strong balance sheet and liquidity position, we have the fina...

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