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Jun 25, 2022
J&J Snack Foods Q3 2022 Earnings Report
J&J Snack Foods' fiscal third quarter revenue increased by 17.2% to an all-time quarterly record.
Key Takeaways
J&J Snack Foods reported strong Q3 results with record quarterly sales of $380.2 million, driven by growth in core products and strength across all three business segments. Gross margin was 28.7%.
Net sales increased 17.2% to $380.2 million compared to Q3 2021.
Gross profit as a percentage of sales was 28.7%.
Food Service sales exceeded Q3 2021 by 16.0%.
Retail segment sales exceeded Q3 2021 by 13.3%.
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 focused on strengthening its operating infrastructure and improving efficiencies to deliver added value to customers and shareholders. They expect to realize synergies and revenue growth opportunities from the Dippin’ Dots acquisition. The company is executing a third price increase and focusing on improved manufacturing efficiencies and cost reduction initiatives to improve operating profit margins.
Positive Outlook
- Portfolio of brands
- Investments in business
- Targeted strategic initiatives will help to continue to grow
- Acquisition of Dippin’ Dots fits perfectly in brand portfolio and customer strategy
- Leveraging a strong balance sheet and healthy liquidity position to acquire a profitable and scalable business
Challenges Ahead
- Experienced significant inflationary pressures, including raw materials and packaging, that continue to impact profit margins.
- Continue to face historic cost pressures in supply chain where we saw both sequential and year-over-year increases driven by higher truck driver wages, and rising carrier, storage and fuel costs.
- Macroeconomic and geopolitical volatility
- Higher levels of inflation across markets
- Distribution costs represented 12.7% of sales in the quarter, versus 8.4% in the prior year period
Revenue & Expenses
Visualization of income flow from segment revenue to net income