J+J Snack Foods: Reports Q2-2021 Sales and Earnings

Pennsauken / NJ. (jj) J+J Snack Foods Corporation announced sales and earnings for the second quarter ended March 27th, 2021. Sales decreased 6 percent to USD 256.2 million from USD 272.0 million in last year’s second quarter. Net earnings were USD 6.1 million in the current quarter down from USD 7.3 million last year. Earnings per diluted share was USD 0.32 for the second quarter down from USD 0.38 last year. Operating income decreased 34 percent to USD 7.2 million in the current quarter from USD 11.0 million last year. Operating income was impacted by approximately USD 0.7 million of Covid-19 related costs as we remain focused on the safety and protection of our associates.

For the six months ended March 27, 2021, sales were USD 497.2 million, a 10 percent decline from the same period last year when sales were USD 554.9 million. Net earnings decreased 68 percent to USD 7.8 million for the six months compared to USD 24.4 million last year. Earnings per diluted share decreased 68 percent to USD 0.41 from USD 1.28 last year. Operating income decreased 76 percent to USD 7.8 million this year from USD 32.7 million last year. Operating income was impacted by USD 1.5 million of Covid-19 related costs during this six-month period.

Sales consistently improved throughout the quarter led by venue openings, accessibility to the Covid-19 vaccine, improving consumer confidence and the spring season. This year’s Q2 sales decline was only 6 percent versus the prior year compared to a decline of 15 percent in our recently reported Q1 results. For the quarter, Food Service fell just 1 percent below prior year moving closer to pre-Covid sales performance, and Retail remained strong at 17 percent growth even as our food service business started to rebound. The Frozen Beverages business was 32 percent below prior year for the quarter which was a significant improvement when compared to Q1 of this year where sales were 41 percent below the prior year. Improved sales volume and a strong focus on cost efficiencies helped drive improved gross margins and profitability.

Dan Fachner, J+J’s President, commented, «I am starting to see some momentum in our business as key venues like theaters, amusement parks, sports arenas and schools start to open and increase capacity. Consumers are starting to get out of their homes with more confidence and enjoying experiences they have missed over the last year. Our products are well positioned for these encouraging trends, and we are excited about the opportunities ahead of us.»