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Mar 25, 2023
J&J Snack Foods Q2 2023 Earnings Report
Reported record fiscal second quarter revenue driven by growth across all three business segments, leading to net earnings and EPS, with adjusted EPS also reported.
Key Takeaways
J&J Snack Foods Corp. reported a strong second quarter with record revenue of $337.9 million, driven by strong demand across all three business segments. Net earnings were $6.9 million, with an EPS of $0.36 and an adjusted EPS of $0.43. The company benefited from improved unit volumes and price increases, leading to a 20.0% increase in net sales.
Net sales increased 20.0% to $337.9 million in Q2 2023 compared to Q2 2022, with growth across all three business segments.
Food Service sales exceeded Q2 2022 by 23.8%, Retail segment sales exceeded Q2 2022 by 13.7%, and Frozen Beverage segment sales exceeded Q2 2022 sales by 13.7%.
Gross profit as a percentage of sales was 26.8% in Q2 2023, compared to 23.2% in Q2 2022.
Adjusted operating income was $12.1 million in the second quarter of fiscal 2023, compared to $4.7 million in the prior year period, leading to net earnings of $6.9 million, compared to $3.3 million in the prior year period.
J&J Snack Foods
J&J Snack Foods
J&J Snack Foods Revenue by Segment
Revenue by Segment
Food Service Revenue
CapyFin.comFrozen Beverages Revenue
CapyFin.com Forward Guidance
The company is excited about future opportunities with a strong sales pipeline and a strategy to improve operating efficiency, supported by a talented team. They will continue to strategically invest in growth opportunities using their robust balance sheet.
Positive Outlook
- Strong sales pipeline.
- Strategy to improve operating efficiency.
- Talented team aligned against key priorities.
- Robust balance sheet.
- Strategic investments in attractive growth opportunities.
Challenges Ahead
- Continued year-over-year pressures on key commodity inputs such as flour, oils, eggs, mixes and sugar.
- Inflationary impacts of approximately 9% compared to a year ago as commodity prices gradually improve.
- Ongoing inflationary pressures across distribution and administrative costs.
- Addition of Dippin’ Dots to the expense base.
- Gross margin challenges due to higher promotions and allowances.