The following is a summary of the J&J Snack Foods Corp. (JJSF) Q2 2024 Earnings Call Transcript:
Financial Performance:
J&J Snack Foods reported record Q2 net sales of $360 million, a growth across their Food Service, Retail and Frozen Beverage segments.
The Gross margin exceeded 30% in the quarter, a 330 basis point improvement over last year.
Adjusted operating income and adjusted EBITDA grew by 81% and 43.1% respectively, with net earnings increasing by over 90%.
Key sales included Food Service sales, which saw a 5.4% increase to $230 million, with Retail segment sales rising 14.1% to $52.9 million.
Operating income for Q2 was $7.9 million, a 54.5% increase compared to the previous year.
Gross profit for the quarter totalled $108.2 million, up 19.8%, with a gross margin of 30.1%.
Net earnings increased to $13.3 million, resulting in reported earnings per share of $0.69, up from $0.36 last year.
The company held $43.6 million in cash and approximately $17 million in debt.
Business Progress:
Sales continued to grow in categories like Churros with an increase of 23.7%, Bakery with 7.7%, and Frozen novelties with 4.2%.
J&J Snack Foods successfully launched several product innovations and expansions, and acquired the Thinsters brand.
They've opened three new Regional Distribution Centers, improving the company's supply chain and shipping 81% of sales orders.
Six new production lines have expanded the company's capacity significantly, increasing efficiencies and enabling growth opportunities.
Despite a challenging consumer environment, J&J Snack Foods posted record sales by focusing on brand growth, dominating core categories, cross-selling, investing for the future, and maintaining culture integrity.
The company experienced positive volume growth across all business segments during Q2, along with margin improvements due to a combination of procurement, operations, margin management, sales, and product mix.
Plans continue for product diversification, innovation, and sales opportunities amidst tracking customer and inflationary trends, with a forecast to build momentum through the second half of fiscal '24.
More details: J&J Snack Foods IR
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