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Sep 24, 2022
J&J Snack Foods Q4 2022 Earnings Report
J&J Snack Foods' Q4 2022 revenue increased, driven by growth across all business segments and the acquisition of Dippin' Dots, despite inflationary pressures impacting profitability.
Key Takeaways
J&J Snack Foods reported a 23.9% increase in net sales for the fourth quarter, reaching a record $400.4 million. This growth was driven by strong performance across all three business segments. Despite the revenue increase, operating income and net earnings decreased due to historically high inflation pressures.
Net sales increased by 23.9% to $400.4 million, marking a fourth consecutive quarterly revenue record.
Sales included approximately $31.5 million in revenue from Dippin’ Dots.
Organic sales growth was driven by core products including pretzels, churros, frozen novelties and frozen beverages.
Gross profit as a percentage of sales was 28.9%, showing an improving trend versus Q3 2022, despite significant inflationary pressures.
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 expects to continue its strong sales momentum while also improving profitability in fiscal 2023.
Positive Outlook
- Strategic initiatives are expected to improve logistics management.
- Strategic initiatives are expected to increase efficiency across the distribution network.
- Supply chain strategy will enable the company to reduce cost.
- Supply chain strategy will drive significant savings over the coming quarters and years.
- The company is well positioned as it heads into fiscal 2023.
Challenges Ahead
- The company continues to experience historically high inflation pressures across just about every segment of the business including wages.
- The company continues to experience historically high inflation pressures across just about every segment of the business including fuel.
- The company continues to experience historically high inflation pressures across just about every segment of the business including packaging.
- The company continues to experience historically high inflation pressures across just about every segment of the business including shipping.
- The company continues to experience historically high inflation pressures across just about every segment of the business including commodities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income