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Sep 26, 2020
J&J Snack Foods Q4 2020 Earnings Report
J&J Snack Foods reported a decrease in sales and earnings for Q4 2020.
Key Takeaways
J&J Snack Foods Corp. reported a 19% decrease in sales for the fourth quarter of 2020, amounting to $252.5 million compared to $311.9 million in the previous year. Net earnings also decreased to $6.6 million ($.35 per diluted share) from $26.1 million ($1.36 per diluted share) in the same quarter last year. Operating income was $3.9 million, down from $31.1 million in the previous year's quarter.
Q4 sales decreased by 19% to $252.5 million compared to $311.9 million in the previous year.
Net earnings decreased to $6.6 million ($.35 per diluted share) from $26.1 million ($1.36 per diluted share) year-over-year.
Operating income decreased to $3.9 million from $31.1 million in the prior year's quarter.
The company experienced sequential improvement from Q3, with sales down 19% compared to 34% in Q3.
J&J Snack Foods
J&J Snack Foods
J&J Snack Foods Revenue by Segment
Revenue by Segment
Food Service Revenue
CapyFin.comRetail Supermarket Revenue
CapyFin.comFrozen Beverages Revenue
CapyFin.com Forward Guidance
The company anticipates COVID-19 will continue to have a negative impact on its business, but does not expect liquidity issues and anticipates sustained growth in the Retail side of its business as well as improved sales as it closed the quarter in both Food Service and ICEE.
Positive Outlook
- Sustained growth in the Retail side of the business.
- Improved sales in Food Service as the quarter closed.
- Improved sales in ICEE as the quarter closed.
- Enjoyed some new business sales growth that will extend into this coming year.
- Company does not expect to have any liquidity issues
Challenges Ahead
- COVID-19 will continue to have a negative impact on its business.
- Approximately 2/3 of the Company’s sales are to venues and locations that have shut down or sharply curtailed their foodservice operations during COVID-19
- Uncertainty that all of us face from prolonged COVID-19 impacts.
- Sales are down across all product lines as many of the venues and locations where our products are sold have been shut down or operating at reduced capacity for some or all of the third and fourth quarters due to COVID-19.
- Gross profit percentage decreased because of lower volume in our food service and frozen beverages segments
Revenue & Expenses
Visualization of income flow from segment revenue to net income