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Dec 28, 2024
J&J Snack Foods Q1 2025 Earnings Report
J&J Snack Foods reported revenue growth and announced a share repurchase authorization.
Key Takeaways
J&J Snack Foods reported a 4.1% increase in revenue to $362.6 million for the first quarter of fiscal year 2025. While all three business segments contributed to the growth, the company's performance was impacted by a less favorable sales mix and input cost inflation.
Net sales increased by 4.1% year-over-year to $362.6 million.
Gross profit margin declined to 25.9% compared to 27.2% in the prior year.
Operating income decreased to $6.2 million from $9.7 million in the prior year.
The board approved a new $50 million stock repurchase authorization.
Revenue by Segment
Forward Guidance
The company is confident in its ability to address short-term margin pressures and improve profitability in the coming quarters through pricing actions and supply chain efficiencies. Positive market catalysts are expected in fiscal 2025, particularly in movie theaters.
Positive Outlook
- Incremental pricing actions have taken effect in the second quarter.
- Efficiencies are being driven across the supply chain.
- Expanded responsibilities for veteran corporate leaders with newly created roles.
- New $50 million stock repurchase authorization.
- Positive market catalysts expected in fiscal 2025, particularly in movie theaters.
Challenges Ahead
- Less favorable sales mix related to bakery and churros business.
- Input cost inflation not fully covered with price increases.
- Foreign exchange headwinds associated with the Mexican Peso.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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