STOCK TITAN

J & J Snack Foods Reports Fiscal 2024 Fourth Quarter Revenue of $426.8 Million

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

J&J Snack Foods reported Q4 fiscal 2024 results with revenue of $426.8M, down 3.9% year-over-year, while full-year revenue increased 1.0% to $1.57B. Q4 net earnings were $29.6M with diluted EPS of $1.52. Full-year performance showed improved profitability with net earnings of $86.6M, up 9.7%, and gross margin of 30.9%. The company faced challenges in Q4 including softer consumer spending and production inefficiencies, but demonstrated strong operational improvements throughout the year with record annual sales and gross profit.

J&J Snack Foods ha riportato i risultati fiscali del quarto trimestre 2024 con un fatturato di $426.8M, in calo del 3.9% rispetto all'anno precedente, mentre il fatturato annuale è aumentato dell'1.0% a $1.57B. Gli utili netti del quarto trimestre sono stati di $29.6M con un utile per azione (EPS) diluito di $1.52. Le performance annuali hanno mostrato un miglioramento della redditività, con utili netti di $86.6M, in crescita del 9.7%, e un margine lordo del 30.9%. L'azienda ha affrontato sfide nel quarto trimestre, tra cui una minore spesa dei consumatori e inefficienze produttive, ma ha dimostrato forti miglioramenti operativi durante tutto l'anno con vendite annuali e profitti lordi record.

J&J Snack Foods reportó los resultados del cuarto trimestre fiscal 2024 con ingresos de $426.8M, una disminución del 3.9% en comparación con el año anterior, mientras que los ingresos anuales aumentaron un 1.0% a $1.57B. Las ganancias netas del cuarto trimestre fueron de $29.6M con ganancias por acción diluidas (EPS) de $1.52. El rendimiento del año completo mostró una mejora en la rentabilidad con ganancias netas de $86.6M, un aumento del 9.7%, y un margen bruto del 30.9%. La empresa enfrentó desafíos en el cuarto trimestre, incluyendo un menor gasto de los consumidores e ineficiencias en la producción, pero demostró fuertes mejoras operativas a lo largo del año con ventas anuales y ganancias brutas récord.

J&J Snack Foods는 2024 회계 연도 4분기 실적을 보고하며 $426.8M의 매출을 기록하였고, 이는 지난해 대비 3.9% 감소한 수치입니다. 반면 연간 매출은 1.0% 증가하여 $1.57B에 도달했습니다. 4분기 순이익은 $29.6M이며, 희석 주당 순이익(EPS)은 $1.52입니다. 연간 실적은 순이익이 $86.6M으로 9.7% 증가하고, 총 마진이 30.9%로 개선되며 수익성이 향상된 것으로 나타났습니다. 회사는 4분기에 소비자 지출 약세 및 생산 비효율성 등 여러 도전에 직면했으나, 연중 기록적인 연간 판매 및 총 이익을 통해 강력한 운영 개선을 보여주었습니다.

J&J Snack Foods a publié les résultats du quatrième trimestre de l'exercice 2024, avec un chiffre d'affaires de $426.8M, en baisse de 3.9% par rapport à l'année précédente, tandis que le chiffre d'affaires annuel a augmenté de 1.0% pour atteindre $1.57B. Le bénéfice net du quatrième trimestre s'est élevé à $29.6M avec un BPA dilué de $1.52. La performance annuelle a montré une amélioration de la rentabilité avec un bénéfice net de $86.6M, en hausse de 9.7%, et une marge brute de 30.9%. L'entreprise a été confrontée à des défis au quatrième trimestre, notamment une consommation plus faible et des inefficacités de production, mais a démontré de fortes améliorations opérationnelles tout au long de l'année avec des ventes annuelles et des bénéfices bruts record.

J&J Snack Foods hat die Ergebnisse des vierten Quartals des Geschäftsjahres 2024 veröffentlicht, mit Einnahmen von $426.8M, was einem Rückgang von 3.9% im Vergleich zum Vorjahr entspricht, während die Einnahmen für das Gesamtjahr um 1.0% auf $1.57B gestiegen sind. Der Nettogewinn im vierten Quartal betrug $29.6M mit einem verwässerten Gewinn pro Aktie (EPS) von $1.52. Die Jahresleistung zeigte eine verbesserte Rentabilität mit einem Nettogewinn von $86.6M, der um 9.7% gestiegen ist, und einer Bruttomarge von 30.9%. Das Unternehmen stand im vierten Quartal vor Herausforderungen, einschließlich eines geringeren Verbraucherausgaben und Produktionsineffizienzen, zeigte jedoch im Laufe des Jahres starke betriebliche Verbesserungen mit Rekordverkaufs- und Bruttogewinnzahlen.

Positive
  • Full-year revenue increased 1.0% to $1.57B
  • Annual gross margin improved 80 basis points to 30.9%
  • Full-year net earnings increased 9.7% to $86.6M
  • Adjusted EBITDA margins improved 110 basis points for the year
  • Operating income increased 7.3% to $117.5M for fiscal 2024
Negative
  • Q4 revenue declined 3.9% to $426.8M
  • Q4 operating income decreased 4.5% to $39.8M
  • Q4 gross margin declined 110 basis points to 31.8%
  • Retail segment sales declined 13.7% in Q4
  • Experiencing continued inflation in chocolates and sugar costs

Insights

J&J Snack Foods' Q4 results reveal mixed performance with notable headwinds. While normalized sales grew 3.9%, reported revenue declined 3.9% to $426.8M. The company faced challenges including softer consumer spending and operational inefficiencies, leading to a 110 basis point decline in gross margins to 31.8%.

Full-year performance shows resilience with revenue reaching $1.57B, up 1.0% and adjusted EBITDA growing 10.2% to $200.1M. The 80 basis point improvement in annual gross margins to 30.9% demonstrates effective pricing strategies and operational improvements.

Key concerns include rising input costs, particularly in cocoa/chocolate and sugar, which may necessitate further price increases. The company's diversification strategy and new QSR partnerships provide growth potential, but consumer spending weakness remains a near-term challenge.

The company's channel performance reveals important market dynamics. Theater segment shows promise with an improving film slate for 2025, potentially boosting Dippin' Dots and ICEE sales. However, current softness in amusement, convenience and restaurant channels signals broader consumer spending constraints.

Strategic expansion of Dippin' Dots into retail and new churros launches in QSR channels represent significant growth opportunities. The company's ability to secure partnerships with major QSR chains demonstrates strong market positioning, contributing $8.0M in new product sales this quarter.

Full Year Fiscal 2024 Revenue Increases 1.0% to $1.57 Billion; Gross Margin of 30.9% and Net Earnings of $86.6 Million Leads to Diluted EPS of $4.45 and
Adjusted EPS of $4.93 for the full year

MOUNT LAUREL, N.J., Nov. 13, 2024 (GLOBE NEWSWIRE) -- J&J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today reported financial results for the fourth quarter (13 weeks) and full year (52 weeks) ended September 28, 2024.1

 Fourth QuarterFull-Year
Actuals% v. LYActuals% v. LY
Net Sales$426.8M-3.9% $1,574.8M1.0% 
Operating Income$39.8M-4.5% $117.5M7.3% 
Net Earnings$29.6M-2.6% $86.6M9.7% 
Earnings per Diluted Share $1.52-3.2% $4.459.1% 
     
Adjusted Operating Income$42.0M-8.3% $130.4M8.5% 
Adjusted EBITDA$59.7M-4.0% $200.1M10.2% 
Adjusted Earnings per Diluted Share$1.60-7.5% $4.939.6% 


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
.

1J&J’s fiscal 2023 fourth quarter and full year included an additional week, with reported results comparing 14 weeks in the fourth quarter of fiscal 2023 to 13 weeks in the fourth quarter of fiscal 2024. Likewise, reported results include 53 weeks for the full year 2023 results, compared to 52 weeks for fiscal 2024. For purposes of comparability, we will refer to “normalized” results to more accurately explain performance trends. For reconciliation of these “normalized” results to GAAP measures, please refer to the non-GAAP financial measures section below.

“J&J Snack Foods delivered another year of strong financial performance in fiscal 2024,” stated Dan Fachner, J&J Snack Foods Chairman, President, and CEO. “Our results demonstrate that we are successfully executing our strategy, improving operational efficiencies and margins, growing profits faster than sales and expanding growth opportunities across channels and customers. In addition to generating record annual sales and gross profit, we also set a new record for full-year Adjusted EBTIDA. For the year, we grew sales 1.0% on a reported basis and 2.8% comparing results on a normalized basis. I am especially proud of our double-digit growth in Adjusted EBITDA led by an 80-basis point improvement in gross margins to 30.9%, along with a 110-basis point improvement in Adjusted EBITDA margins for the year.

“Looking at our fiscal fourth quarter results, net sales decreased 3.9% as reported and increased 3.9% on a normalized basis. The loss of one week of sales had an even more pronounced impact on the quarter compared to prior year due to losing selling days the first week of July, peak seasonal sales days for our core business. I am pleased with our ability to grow sales on a normalized basis given the challenging consumer environment across many of our key customer channels including amusement, convenience, restaurants, and retail. These softer consumer trends, together with less sales days, had a marked impact on sales of core products including soft pretzels, churros, frozen beverages, frozen novelties, and Dippin Dots, negatively impacting gross margin mix, and creating production and supply chain inefficiencies as we balanced demand and inventory in our plants and distribution centers. This led to a gross margin of 31.8%, a 110-basis point decline compared to a record fiscal 2023 fourth quarter gross margin of 32.9%. Operating income and Adjusted EBITDA decreased 4.5% and 4.0%, respectively. Despite these challenges, we delivered net earnings as a percentage of sales of 6.9%, in-line with the prior year period, reflecting our success in managing costs and improving operating efficiencies.

“As we enter fiscal 2025, we remain confident in the growth potential of our core products and the success of our new product launches and client partnerships. For example, we continue to expand the breadth and depth of Dippin Dots across the theater channel and are preparing for the upcoming launch into retail. With a more compelling film slate in fiscal 2025, we are optimistic about the growth opportunity of Dippin Dots and Icee beverages in this channel and expect sales of our other products to improve as attendance trends improve. We are also seeing continued success with some of the largest national QSR chains and expect our recent churros launch in this channel to result in new opportunities.

“In summary, we are encouraged by the progress we are making in maximizing sales across all customer channels and enhancing our operational efficiencies. We have a diverse portfolio of beloved products and brands, presenting us with significant growth opportunities, both in terms of the products we sell as well as where we sell them. In addition, our strong balance sheet and liquidity, paired with our experienced leadership team, give us confidence in our ability to create long-term value for our employees, partners, and shareholders.”

Fourth Quarter Highlights

Net sales decreased 3.9% to $426.8 million in Q4 of fiscal 2024 and increased 3.9% on a normalized basis, compared to Q4 of fiscal 2023.   The sales decline attributed to the additional week in Q4 2023 contributed to an estimated $4 million negative operating income impact on fourth quarter 2024 results.

Key highlights include:

  • Food Service segment sales declined 3.0% to $262.2 million, but increased 4.6% on a normalized basis versus Q4 ’23.
  • Retail segment sales declined 13.7% to $55.9 million, and decreased 5.7% on a normalized basis versus Q4 ’23.
  • Frozen Beverage segment sales declined 0.1% to 108.7 million, but increased 7.7% on a normalized basis versus Q4 ’23.
  • On a reported basis, core products, including Soft Pretzels, Churros, and Frozen Novelties, including Dippin Dots, all experienced sales declines in the quarter driven by one fewer week in Q4 ’24 vs. Q4 ’23 and softer consumer spending. This was partially offset by sales growth across Handhelds and Bakery.

Gross profit as a percentage of sales was 31.8% in Q4 ’24, or a 110 basis point decline versus a record Q4 ’23 gross profit rate. This reflects the negative impact from the shift in product mix between core and non-core products, and production and supply chain inefficiencies as we managed through softer consumer demand. Across our portfolio of raw materials, we experienced net mid-single-digit inflation, with the increase primarily driven by higher cost of cocoa/chocolate, and to a lesser extent, increases in the cost of sugar/sweeteners, eggs, and meats. These increases were somewhat offset by deflationary trends seen in flour, cheese and dairy, and mixes. Pricing adjustments and contractual cost true ups helped minimize the majority of the impact, but continued inflation in chocolates and sugar is driving consideration of further price increases and cost of goods initiatives to manage gross margins.

Total operating expenses of $95.7 million represented 22.4% of sales for the quarter, a 100 basis point improvement compared to 23.4% of sales in Q4 ’23.

  • Distribution costs of $46.0 million represented 10.8% of sales in the quarter, flat versus the prior year period, as investments in improving our supply chain network continue to drive expenses savings and distribution efficiencies.
  • Marketing and selling expenses of $31.1 million represented 7.3% of sales, versus 7.0% in the prior year period and continue to drive innovation, promote our brands and launch new selling opportunities.
  • Administrative expenses of $18.2 million represented 4.3% of sales in Q4 ’24, favorably comparing to 5.0% in Q4 ’23.

Adjusted operating income was $42.0 million in the fourth quarter of fiscal 2024, compared to $45.8 million in the prior year period, with the decline driven by lower overall sales and weaker gross margin mix partially offset by operational efficiencies. This led to net earnings in Q4 ’24 of $29.6 million, compared to $30.4 million in Q4 ’23. Our effective tax rate was 26.8% in Q4 ’24.        

Fiscal 2024 Highlights
Net sales increased 1.0% to a record $1.57 billion for full year fiscal 2024, and 2.8% on a normalized basis versus full year fiscal 2023, reflecting solid performance across all three business segments for the full year.

Key highlights include:

  • Food Service sales grew 0.3% in fiscal 2024, and 2.4% on a normalized basis compared to the prior year, led by Churros and Handheld sales and to a lesser degree Bakery and Frozen Novelties sales. This was partially offset by declines in Soft Pretzel sales.
  • Retail sales continued their strong performance, growing 2.7% over the prior record year period and 4.4% on a normalized basis, driven by growth in handhelds and soft pretzels, partially offset by declines in Frozen Novelties and Biscuits.
  • Frozen Beverages segment sales grew 1.9% in fiscal 2024, and 3.0% on a normalized basis compared to the prior year. Reported sales were driven by 2.4% increase in Beverages and a 0.7% increase in Maintenance and Machine revenue.

Gross profit as a percentage of sales improved 80 basis points to 30.9% for fiscal 2024, favorably comparing to 30.1% for the prior year, with the increase largely attributable to the benefit of increased top-line demand, favorable product mix, more aligned pricing and cost, and targeted margin efficiencies.

Total operating expenses increased to 23.4% of sales, compared to 23.1% for fiscal 2023 largely reflecting the higher expenses around marketing to support our new product launches.

  • Distribution costs were 11.2% of sales for the year, versus 11.1% in the prior year period, reflecting improved supply chain efficiencies after adjusting for one-time transformation investments.
  • Marketing and selling expenses were 7.5% of sales, compared to 7.1% last year, driven by more marketing dollars aligned with new customer opportunities and product launches.
  • Administrative expenses were 4.7% of sales this year, compared to 4.8% last year, reflecting improved management of expenses and leverage from higher sales.

Fiscal 2024 operating income increased 7.3% to $117.5 million, versus $109.5 million for fiscal 2023, largely as the result of continued top-line growth, improved gross margins, and effective management of operating expenses.

Fiscal 2024 net earnings increased 9.7% to $86.6 million, compared to $78.9 million in fiscal 2023. Our effective tax rate was 27.2% in fiscal 2024, compared to 26.6% in the prior year.

Food Service Segment Fourth Quarter Highlights

  • Q4 ’24 food service sales totaled $262.2 million, or a decline of 3.0%, compared to Q4 ’23 sales of $270.3 million. Sales on a normalized basis grew 4.6%.
  • On a reported basis, churros’ sales declined 9.5% to $25.2 million, reflecting lower club and restaurant channel sales, partially offset by new business growth with a major QSR customer. Soft Pretzel sales declined 9.4% while Frozen Novelties sales declined 4.3%, driven primarily by a 9% decrease in Dippin’ Dots sales due to soft traffic in amusement and convenience channels. These declines were partially offset by 8.4% growth in Handheld sales.
  • Sales of new products and added placement with new customers totaled approximately $8.0 million, driven primarily by the addition of churros to the menu of two major QSR customers.  
  • Q4 ’24 operating income decreased 12.7% to $15.3 million, versus the prior year period with the decrease primarily driven by the decline in overall sales and the shift in product mix.

Retail Segment Fourth Quarter Highlights

  • Q4’24 retail sales totaled $55.9 million, or a decline of 13.7%, compared to Q4 ’23. Sales on a normalized basis decreased 5.7%.
  • Soft Pretzel and Frozen Novelties sales declined, 19.3% and 16.8%, respectively, while sales of Biscuits were relatively flat, down 0.3%. These declines were partially offset by 14.9 % growth in Handheld sales driven by expanded distribution with a major mass merchant.
  • New product innovation contributed approximately $1.0 million in the quarter driven primarily by the growth of Superpretzel Bavarian sticks and frozen novelties.
  • Operating income for the quarter was $3.3 million, a decline of $0.4 million versus the prior year period driven entirely by softer sales in the quarter.

Frozen Beverages Segment Fourth Quarter Highlights      

  • Frozen beverages segment sales totaled $108.7 million, flat compared to a record Q4 ’23. Sales on a normalized basis grew 7.7%.
  • Beverage sales were flat at $71.3 million, led by softness in the amusement/entertainment, convenience and QSR channels. Sales did improve for the theater channel, especially in July and September as the market started to see a higher volume of strong releases. The theater industry expects significant improvement in calendar 2025 as the schedule of new releases is much stronger.
  • Repair and Maintenance revenues declined 1.3%, versus the prior year period reflecting weaker maintenance call volumes, while Machine sales were up 1.7% in the quarter.
  • Q4 ’24 operating income increased 3.4% to $21.3 million for the quarter, compared to a Q4 ’23 operating income of $20.6 million, driven by improved product mix and effective management of operating expenses.

Conference Call
J & J Snack Foods Corp. will host a conference call to discuss results and business outlook on November 14, 2024, at 10:00 a.m. Eastern Time. Conference call participants should register by clicking on this Registration Link to receive the dial-in number and a personal PIN, which are required to access the conference call. A live audio webcast of the conference call will also be available on the Investors homepage at https://www.jjsnack.com/investors/.

About J & J Snack Foods Corp.
J & J Snack Foods Corp. (NASDAQ: JJSF) is a leader and innovator in the snack food industry, providing innovative, niche, and affordable branded snack foods and beverages to foodservice and retail supermarket outlets. Manufactured and distributed nationwide, our principal products include SUPERPRETZEL, the #1 soft pretzel brand in the world, as well as internationally known ICEE and SLUSH PUPPIE frozen beverages, DIPPIN’ DOTS ice cream, LUIGI’S Real Italian Ice, MINUTE MAID* frozen ices, WHOLE FRUIT sorbet and frozen fruit bars, HOLA! CHURROS, and THE FUNNEL CAKE FACTORY funnel cakes and several bakery brands within DADDY RAY’S, COUNTRY HOME BAKERS, and HILL & VALLEY. For more information, please visit http://www.jjsnack.com.

*MINUTE MAID is a registered trademark of The Coca-Cola Company.

Cautionary Statement Regarding Forward-Looking Information
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company’s expected future financial position, results of operations, revenue growth and profit levels, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “goals,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. This includes, without limitation, our statements, and expectations regarding any current or future recovery in our industry (or the industries of our customers) and the future impact of our operational efficiency projects. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the expectations of management. We do not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include consumer spending, price competition, acceptance of new products, the pricing and availability of raw materials, transportation costs, changes in the competitive marketplace the uncertainty and ultimate economic impact of the COVID-19 pandemic or similar health outbreaks, and other risks identified in our annual report on Form 10-K, and our other filings with the Securities and Exchange Commission. Many of these factors are outside of the Company’s control.

Non-GAAP Financial Measures
Adjusted EBITDA consists of net earnings adjusted to exclude: income taxes (benefit); investment income; interest expense; depreciation and amortization; share-based compensation expense; net (gain) loss on sale or disposal of assets; impairment charges, restructuring costs, merger and acquisition costs, acquisition related inventory adjustments, strategic business transformation costs, and integration costs.

Adjusted Operating Income consists of operating income adjusted to exclude impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustments, strategic business transformation costs, and integration costs.

Adjusted Earnings per Diluted Share consists of net earnings adjusted to exclude impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustment, strategic business transformation costs, and integration costs. For purposes of comparability, the income tax effect of pre-tax adjustments is determined using statutory tax rates.

Normalized net sales related metrics are calculated excluding the impact of the additional week on prior year comparable sales results. For the full fiscal year comparative metrics, the additional week is defined as the week beginning on September 25, 2022. For the fiscal fourth quarter comparative metrics, the additional week is defined as the week beginning on June 25, 2023.

This press release contains certain non-GAAP financial measures; Adjusted EBITDA, Adjusted Operating Income, Adjusted Earnings per Diluted Share and Normalized Net Sales. A "non-GAAP financial measure" is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP") in the statements of income, balance sheets, or statements of cash flow of the company. Pursuant to applicable reporting requirements, the company has provided reconciliations below of non-GAAP financial measures to the most directly comparable GAAP measure.

The non-GAAP financial measures presented within the Company's earnings release are not indicators of our financial performance under GAAP and should not be considered as an alternative to the applicable GAAP measure. These non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating these non-GAAP measures, you should be aware that in the future we may incur income, expenses, gains and losses, similar to the adjustments in this press release. Our presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence to our GAAP results and using non-GAAP measures only as supplemental presentations.

The non-GAAP measures presented are utilized by management to evaluate the Company's business performance and profitability by excluding certain items that may not be indicative of our recurring core business operating results. The Company believes that these measures provide additional clarity for investors by excluding specific income, expenses, gains, and losses, in an effort to show comparable business operating results for the periods presented. Similarly, Management believes these adjusted measures are useful performance measures because certain items included in the calculations may either mask or exaggerate trends in the Company’s ongoing operating performance. See the reconciliation of Non-GAAP Financial Measures below.

Investor Contact:
Joseph Jaffoni, Norberto Aja, or Jennifer Neuman
JCIR
(212) 835-8500
jjsf@jcir.com



J & J SNACK FOODS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
        
 Quarter ended Fiscal year ended
 September 28, September 30, September 28, September 30,
  2024   2023   2024   2023 
 (13 weeks) (14 weeks) (52 weeks) (53 weeks)
        
Net sales$426,756  $443,863  $1,574,755  $1,558,829 
Cost of goods sold 291,225   298,119   1,088,630   1,088,964 
  Gross profit 135,531   145,744   486,125   469,865 
        
Operating expenses       
Marketing 31,085   31,234   118,805   110,258 
  Distribution 45,975   48,082   175,601   172,804 
  Administrative 18,171   22,375   74,771   75,425 
  Intangible asset impairment charges -   1,678   -   1,678 
  Other general expense 458   672   (597)  182 
     Total operating expenses 95,689   104,041   368,580   360,347 
        
Operating income 39,842   41,703   117,545   109,518 
        
Other income (expense)       
  Investment income 963   1,024   3,228   2,743 
  Interest expense (294)  (1,050)  (1,826)  (4,747)
        
Earnings before income taxes 40,511   41,677   118,947   107,514 
        
Income tax expense 10,870   11,256   32,396   28,608 
        
  NET EARNINGS$29,641  $30,421  $86,551  $78,906 
        
Earnings per diluted share$1.52  $1.57  $4.45  $4.08 
        
Weighted average number of diluted shares 19,532   19,398   19,449   19,324 
        
Earnings per basic share$1.52  $1.58  $4.46  $4.10 
        
Weighted average number of basic shares 19,444   19,306   19,389   19,257 
        


J & J SNACK FOODS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)   
(in thousands, except share amounts)
    
 September 28, September 30,
  2024   2023 
Assets   
Current assets   
  Cash and cash equivalents$73,394  $49,581 
  Accounts receivable, net 189,233   198,129 
  Inventories 173,141   171,539 
  Prepaid expenses and other 14,646   10,963 
     Total current assets 450,414   430,212 
    
Property, plant and equipment, at cost   
  Land 3,684   3,684 
  Buildings 54,996   45,538 
  Plant machinery and equipment 475,194   445,299 
  Marketing equipment 317,269   296,482 
  Transportation equipment 15,796   14,367 
  Office equipment 48,589   47,393 
  Improvements 67,923   51,319 
  Construction in progress 28,592   56,116 
     Total Property, plant and equipment, at cost 1,012,043   960,198 
  Less accumulated depreciation and amortization 620,858   574,295 
     Property, plant and equipment, net 391,185   385,903 
    
Other assets   
  Goodwill 185,070   185,070 
  Other intangible assets, net 182,256   183,529 
  Operating lease right-of-use assets 152,383   88,868 
  Other 3,793   3,654 
     Total other assets 523,502   461,121 
Total Assets$1,365,101  $1,277,236 
    
Liabilities and Stockholders' Equity   
Current Liabilities   
  Current finance lease liabilities$243  $201 
  Accounts payable 89,268   90,758 
  Accrued insurance liability 16,933   15,743 
  Accrued liabilities 10,063   14,214 
  Current operating lease liabilities 19,063   16,478 
  Accrued compensation expense 23,325   23,341 
  Dividends payable 15,178   14,209 
     Total current liabilities 174,073   174,944 
    
Long-term debt -   27,000 
Noncurrent finance lease liabilities 445   600 
Noncurrent operating lease liabilities 140,751   77,631 
Deferred income taxes 87,824   81,310 
Other long-term liabilities 5,038   4,233 
    
Stockholders' Equity   
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued -   - 
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 19,460,000 and 19,332,000 respectively 136,516   114,556 
Accumulated other comprehensive loss (15,299)  (10,166)
Retained Earnings 835,753   807,128 
     Total stockholders' equity 956,970   911,518 
Total Liabilities and Stockholders' Equity$1,365,101  $1,277,236 
    


J & J SNACK FOODS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
    
 Fiscal year ended
 September 28, September 30,
  2024   2023 
 (52 weeks) (53 weeks)
Operating activities:   
  Net earnings$86,551  $78,906 
  Adjustments to reconcile net earnings to net cash provided by operating activities   
    Depreciation of fixed assets 63,411   56,616 
    Amortization of intangibles and deferred costs 7,190   6,525 
    Intangible asset impairment charges -   1,678 
    (Gains) Losses from disposals of property & equipment 11   (409)
    Share-based compensation 6,220   5,318 
    Deferred income taxes 6,434   10,935 
    (Gain) Loss on marketable securities -   (8)
    Other (199)  323 
    Changes in assets and liabilities, net of effects from purchase of companies   
       Decrease in accounts receivable 7,931   11,399 
      (Increase) Decrease in inventories (1,006)  9,475 
      (Increase) Decrease in prepaid expenses (2,983)  5,924 
       Increase (Decrease) in accounts payable and accrued liabilities (494)  (14,403)
    Net cash provided by operating activities 173,066   172,279 
    
Investing activities:   
  Payments for purchases of companies, net of cash acquired (7,014)  - 
  Purchases of property, plant and equipment (73,569)  (104,737)
  Proceeds from redemption and sales of marketable securities -   9,716 
  Proceeds from disposal of property and equipment 699   1,781 
  Proceeds from insurance for fixed assets 2,218   - 
    Net cash (used in) investing activities (77,666)  (93,240)
    
Financing activities:   
  Proceeds from issuance of stock 15,740   15,212 
  Borrowings under credit facility 71,000   114,000 
  Repayment of borrowings under credit facility (98,000)  (142,000)
  Payments on finance lease obligations (151)  (180)
  Payment of cash dividend (56,957)  (53,877)
    Net cash (used in) provided by financing activities (68,368)  (66,845)
    
Effect of exchange rates on cash and cash equivalents (3,219)  2,206 
    
Net increase (decrease) in cash and cash equivalents 23,813   14,400 
Cash and cash equivalents at beginning of period 49,581   35,181 
Cash and cash equivalents at end of period$73,394  $49,581 
    


J & J SNACK FOODS CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited) (in thousands)
        
 Quarter ended Fiscal year ended
 September 28, September 30, September 28, September 30,
  2024   2023   2024   2023 
 (13 weeks) (14 weeks) (52 weeks) (53 weeks)
Sales to external customers:       
  Food Service       
    Soft pretzels$58,252  $64,330  $222,237  $235,572 
    Frozen novelties 47,531   49,643   147,995   145,425 
    Churros 25,151   27,780   114,306   108,927 
    Handhelds 23,202   21,408   86,053   82,292 
    Bakery 99,674   96,319   387,129   378,149 
    Other 8,340   10,802   27,475   31,475 
  Total Food Service$262,150  $270,282  $985,195  $981,840 
        
  Retail Supermarket       
    Soft pretzels$15,734  $19,505  $61,744  $60,272 
    Frozen novelties 29,445   35,384   112,192   115,807 
    Biscuits 6,151   6,168   24,229   25,074 
    Handhelds 5,987   5,212   26,253   16,655 
    Coupon redemption (1,130)  (1,625)  (3,162)  (2,561)
    Other (251)  201   52   181 
  Total Retail Supermarket$55,936  $64,845  $221,308  $215,428 
        
  Frozen Beverages       
    Beverages$71,322  $71,319  $230,030  $224,655 
    Repair and maintenance service 25,051   25,385   96,589   95,941 
    Machines revenue 11,309   11,116   38,188   37,933 
    Other 988   916   3,445   3,032 
  Total Frozen Beverages$108,670  $108,736  $368,252  $361,561 
        
Consolidated sales$426,756  $443,863  $1,574,755  $1,558,829 
        
Depreciation and amortization:       
  Food Service$12,155  $10,926   46,131  $39,758 
  Retail Supermarket 288   543   1,736   1,966 
  Frozen Beverages 5,773   5,308   22,734   21,417 
Total depreciation and amortization$18,216  $16,777  $70,601  $63,141 
        
Operating Income:       
  Food Service$15,260  $17,472  $49,454  $49,778 
  Retail Supermarket 3,258   3,609   16,632   9,375 
  Frozen Beverages 21,324   20,622   51,459   50,365 
Total operating income$39,842  $41,703  $117,545  $109,518 
        
Capital expenditures:       
  Food Service$12,181  $20,767  $46,127  $79,388 
  Retail Supermarket 19   -   21   1,824 
  Frozen Beverages 4,998   7,498   27,421   23,525 
Total capital expenditures$17,198  $28,265  $73,569  $104,737 
        
Assets:       
  Food Service$971,600  $903,518  $971,600  $903,518 
  Retail Supermarket 34,609   34,232   34,609   34,232 
  Frozen Beverages 358,892   339,486   358,892   339,486 
Total assets$1,365,101  $1,277,236  $1,365,101  $1,277,236 
        


J & J SNACK FOODS CORP. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
(Unaudited) (in thousands)
         
  Quarter ended Fiscal year ended
  September 28, September 30, September 28, September 30,
   2024   2023   2024   2023 
  (52 weeks) (53 weeks) (52 weeks) (53 weeks)
         
         
Reconciliation of GAAP Net Earnings to Adjusted EBITDA         
         
Net Earnings $29,641  $30,421  $86,551  $78,906 
    Income Taxes  10,870   11,256   32,396   28,608 
    Investment Income  (963)  (1,024)  (3,228)  (2,743)
    Interest Expense  294   1,050   1,826   4,747 
    Depreciation and Amortization  18,216   16,777   70,601   63,161 
    Share-Based Compensation  1,378   1,383   6,220   5,318 
    Strategic Business Transformation Costs (2)  -   768   4,848   1,719 
    Net (Gain) Loss on Sale or Disposal of Assets  34   (154)  11   (409)
    Impairment Costs  -   1,678   -   1,678 
    Acquisition Related Inventory Adjustment  -   -   183   - 
    Merger and Acquisition Costs  -   -   250   - 
    Integration Costs  222   -   427   570 
Adjusted EBITDA $ 59,692  $ 62,155  $ 200,085  $ 181,555 
         
         
Reconciliation of GAAP Operating Income to Adjusted Operating Income        
        
         
Operating Income  39,842   41,703   117,545   109,518 
    Strategic Business Transformation Costs (2)  -   768   4,848   1,719 
    Acquisition Related Amortization Expenses  1,946   1,679   7,190   6,716 
    Impairment Costs  -   1,678   -   1,678 
    Acquisition Related Inventory Adjustment  -   -   183   - 
    Merger and Acquisition Costs  -   -   250   - 
    Integration Costs  222   -   427   570 
Adjusted Operating Income $ 42,010  $ 45,828  $ 130,443  $ 120,201 
         
         
Reconciliation of GAAP Earnings per Diluted Share to Adjusted Earnings per Diluted Share        
        
         
Earnings per Diluted Share $1.52  $1.57  $4.45  $4.08 
    Strategic Business Transformation Costs (2)  -   0.04   0.25   0.09 
    Acquisition Related Amortization Expenses  0.10   0.09   0.37   0.35 
    Impairment Costs  -   0.09   -   0.09 
    Acquisition Related Inventory Adjustment  -   -   0.01   - 
    Merger and Acquisition Costs  -   -   0.01   - 
    Integration Costs  0.01   -   0.02   0.03 
         
    Tax Effect of Non-GAAP Adjustments (1)  (0.03)  (0.06)  (0.18)  (0.14)
         
Adjusted Earnings per Diluted Share $ 1.60  $ 1.73  $ 4.93  $ 4.50 
         
(1) Income taxes associated with pre-tax adjustments determined using statutory tax rates       
(2) Strategic business transformation costs are start-up costs related to our regional distribution center supply chain transformation.   
         


J & J SNACK FOODS CORP. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES (CONT'D)
(Unaudited) (in thousands)
             
Reconciliation of GAAP net sales             
to normalized net sales            
  Quarter  Quarter  Quarter  Quarter  Quarter   
  ended ended ended ended ended  
  September 30, September 30,  September 30, September 28, September 30, Normalized
  2023 2023  2023 2024 2023 Sales Increase
  (14 weeks) Impact of  (normalized) (as reported) (normalized) (Decrease)
    additional week (1)       
Net Sales to external customers:            
  Total Food Service 270,282 (19,596) 250,686 262,150 250,686 4.6%
             
  Total Retail Supermarket 64,845 (5,523) 59,322 55,936 59,322 -5.7%
             
  Total Frozen Beverages 108,736 (7,871) 100,865 108,670 100,865 7.7%
             
Consolidated net sales 443,863 (32,990) 410,873 426,756 410,873 3.9%
             
             
  Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year  
  ended ended ended ended ended Normalized
  September 30, September 30, September 30, September 28, September 30, Sales Increase
  2023 2023  2023 2024 2023 (Decrease)
  (53 weeks) Impact of  (normalized) (as reported) (normalized)  
    additional week (2)       
Net Sales to external customers:            
  Total Food Service 981,840 (20,125) 961,715 985,195 961,715 2.4%
             
  Total Retail Supermarket 215,428 (3,460) 211,968 221,308 211,968 4.4%
             
  Total Frozen Beverages 361,561 (4,079) 357,482 368,252 357,482 3.0%
             
Consolidated net sales 1,558,829 (27,664) 1,531,165 1,574,755 1,531,165 2.8%
             
             
(1) For fiscal fourth quarter comparative metrics, the additional week is defined as the week beginning on June 25, 2023.       
(2) For the full fiscal year comparative metrics, the additional week is defined as the week beginning on September 25, 2022.      
             

FAQ

What was J&J Snack Foods (JJSF) revenue for Q4 2024?

J&J Snack Foods reported Q4 2024 revenue of $426.8 million, representing a 3.9% decrease from the previous year.

What was JJSF's full-year gross margin for fiscal 2024?

J&J Snack Foods achieved a full-year gross margin of 30.9% for fiscal 2024, an improvement of 80 basis points from the previous year.

How much did J&J Snack Foods' net earnings grow in fiscal 2024?

J&J Snack Foods' net earnings increased 9.7% to $86.6 million in fiscal 2024 compared to $78.9 million in fiscal 2023.

What was JJSF's Q4 2024 EPS?

J&J Snack Foods reported Q4 2024 earnings per diluted share of $1.52, down 3.2% from the previous year.

J&J Snack Foods Corp

NASDAQ:JJSF

JJSF Rankings

JJSF Latest News

JJSF Stock Data

3.30B
15.28M
21.55%
79.27%
3.19%
Packaged Foods
Cookies & Crackers
Link
United States of America
MOUNT LAUREL