Business
J&J Snack Foods Reports Quarterly Record Revenue of $425.8M in 2023 Fiscal Third Quarter
Growth Across All Three Business Segments Drives Record Operating Income and Net Earnings PENNSAUKEN, N.J., July 31, 2023 (GLOBE NEWSWIRE) -- J&J Snack Foods
About this update from J & J Snack Foods Corp.
[{"type":"text","content":"Growth Across All Three Business Segments Drives Record Operating Income and Net Earnings\nPENNSAUKEN, N.J., July 31, 2023 (GLOBE NEWSWIRE) -- J&J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today reported financial results for the third quarter ended June 24, 2023. Third QuarterActuals$ LY% v. LYNet Sales$425.8M$380.2M12.0%Operating Income$48.3M$21.3M127.2%Net Earnings$35.0M$15.6M124.8%Earnings per Diluted Share $1.81$0.81123.5% Adjusted Operating Income$51.1M$24.9M104.8%Adjusted EBITDA$66.6M$38.4M73.3%Adjusted Earnings per Diluted Share$1.92$0.95102.1% This press release contains non-GAAP financial measures. Please refer to the Non-GAAP Financial Measures section below for reconciliations to the most comparable GAAP measures. Dan Fachner, J&J Snack Foods President and CEO, commented, “I would like to thank our employees for delivering a record third quarter as our business continues to build sales and profit momentum across all three of our business segments. Our results showcase the positive impact of the various operational and strategic initiatives undertaken over the past two years combined with an improving inflationary environment. Net sales grew by double digits to $425.8 million driven by Food Services sales growth of 11.9% and Frozen Beverages sales growth of 20.0%. Our Frozen Beverages business delivered record sales and profits for the quarter led by a recovering theater industry and strong gross margin performance. Company operating income grew 127.2% in the quarter, led by an improvement in gross margins to 33.6% and lower distribution expenses.” “Our gross margin initiatives and strategies are starting to gain momentum helping us to drive improved profitability. Like most of our industry, we are beginning to see cost inflation stabilize for most ingredients, except for sugar/sweeteners and mixes. In addition, we are seeing margin mix improvement led by our investments and focus on growing core products, including churro’s, pretzels, frozen beverages, and frozen novelties. Pricing actions are now better aligned with cost, and we are achieving added efficiency across our manufacturing plants. The team is successfully executing on cross-selling opportunities, including Dippin’ Dots ICEE Cherry ‘n Blue Razz and gaining placement in new channels. In the fourth quarter, we will be launching SuperPretzel Bavarian s...