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Jun 24, 2023
J&J Snack Foods Q3 2023 Earnings Report
J&J Snack Foods reported a record quarterly revenue driven by growth across all three business segments, resulting in record operating income and net earnings.
Key Takeaways
J&J Snack Foods Corp. reported a record third quarter with net sales increasing by 12.0% to $425.8 million. This growth was driven by strong performance across all three business segments, particularly Food Services and Frozen Beverages. The company's operating income grew by 127.2%, and net earnings increased by 124.8% due to improved gross margins and lower distribution expenses.
Net sales increased by 12.0% to $425.8 million, driven by growth in Food Services and Frozen Beverages segments.
Operating income grew by 127.2% due to improved gross margins and lower distribution expenses.
Gross margin improved to 33.6% due to pricing actions, better product mix, and stabilization of inflationary pressures.
The company is expanding its distribution network with new regional distribution centers to improve customer service and reduce costs.
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 optimistic about future growth, supported by a strong leadership team, aligned initiatives across various departments, and a healthy business, balance sheet, and liquidity position.
Positive Outlook
- Improving gross margin trends.
- Strong sales plan across three business segments.
- Operational improvements across all facets of the business.
- Transformation in product management through warehouses and shipping to customers.
- Building of three geographically positioned regional distribution centers (RDCs).
Challenges Ahead
- Continued double-digit inflation in sugar/sweeteners and mixes.
- Potential impact on products such as frozen novelties and churros due to inflation in specific ingredients.
- Uncertainty and ultimate economic impact of the COVID-19 pandemic.
- Risks related to consumer spending and price competition.
- Risks related to the pricing and availability of raw materials and transportation costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income