In This Article:
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Revenue: Increased 4.1% to $362.6 million.
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Gross Margin: Declined to 25.9% from 27.2% in the prior year.
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Food Service Revenue: Grew 4.5%.
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Retail Revenue: Increased 2.2%.
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Frozen Beverage Revenue: Increased 4% with a 10% volume increase.
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Operating Income: Declined to $6.2 million from $9.7 million.
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Net Earnings: $5.1 million compared to $7.3 million in the prior year.
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Earnings Per Diluted Share: $0.26 versus $0.37 in the prior year period.
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Adjusted Earnings Per Diluted Share: $0.33 versus $0.52 in the prior year quarter.
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Adjusted EBITDA: Declined to $25.3 million from $30.2 million.
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Free Cash Flow: Generated approximately $16 million.
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Cash and Liquidity: $74 million in cash and no long-term debt.
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Stock Repurchase Authorization: New $50 million authorization approved.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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J&J Snack Foods Corp (NASDAQ:JJSF) achieved a 4.1% increase in revenue to $362.6 million, marking a Q1 record.
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The Frozen Beverage segment delivered record first-quarter results, driven by a 10% volume increase and a rebound in theater traffic.
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The company saw a 9.8% increase in frozen novelties, with significant growth in Dippin' Dots and Dogsters.
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J&J Snack Foods Corp (NASDAQ:JJSF) announced a new $50 million stock repurchase authorization, reflecting confidence in long-term value.
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The company has implemented additional pricing actions in Q2 to mitigate input cost inflation, showing proactive management.
Negative Points
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Gross margin declined to 25.9% from 27.2% due to unfavorable sales mix and input cost inflation not fully offset by price increases.
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The company experienced a decline in churros sales by 9.2%, attributed to the loss of a limited-time offer with a quick-serve restaurant.
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Foreign exchange headwinds, particularly a weaker peso, negatively impacted the Frozen Beverage performance in Mexico.
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Operating income for the quarter declined to $6.2 million from $9.7 million, reflecting near-term pressures on profitability.
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The company faced challenges in the bakery segment, losing some seasonal business with a declining margin profile.
Q & A Highlights
Q: Can you provide a breakdown of the gross margin decline year-over-year, specifically regarding commodity, foreign exchange, and mix impacts? A: Shawn Munsell, CFO, explained that about 80 basis points of the decline were due to the gap in pricing relative to input costs, with the rest attributed to mix changes, particularly in the bakery business. The foreign exchange impact, mainly due to the peso's weakening, was nearly $1 million.