J+J Snack Foods: Reports Q4 Fiscal 2023 Results

Mount Laurel / NJ. (jj) J+J Snack Foods Corporation reported financial results for the fourth quarter and full year ended September 30, 2023. President and CEO Dan Fachner: «J+J Snack Foods ended fiscal 2023 on a strong note, including record sales and profitability for both the fourth quarter and full year. We achieved these results through the dedicated efforts of our J+J employees across the business, as well as the positive impact of various operational and strategic initiatives we have undertaken over the past two years. Fiscal fourth quarter net sales increased to a record USD 443.9 million, driven by Food Services sales growth of 5.3 percent, Retail segment sales growth of 21.2 percent and Frozen Beverages sales growth of 20.6 percent. In addition, our work to improve profit margins continues to gain momentum led by a 32.8 percent gross margin in the quarter and lower distribution expenses. Operating income and adjusted Ebitda increased 93.0 percent and 55.2 percent, respectively, for the fourth quarter and 77.2 percent and 46.3 percent, respectively for fiscal 2023.»

«Diving deeper into our sales performance, we are seeing marked success across our core brands, as pretzels, churros and frozen novelties continue to post healthy growth on the back of our initiatives to onboard new customers, bring new products to market and improve the effectiveness of our brand marketing. I am particularly pleased with Dippin’ Dots performance in its first full year as a part of J+J’s portfolio. Dippin’ Dots achieved its highest sales and profitability in its history, growing over 13 percent and 80 percent for the fiscal year, respectively, on the back of our success in driving synergies, penetrating new sales channels, and leveraging new products. Our Retail segment delivered a strong fourth quarter, growing 21.2 percent driven by new placement of SuperPretzel Bavarian sticks, pretzel dogs and pretzel bites, along with our launch of Hola! Churros into retail. Our Frozen Novelty business also continues to grow led by Luigi’s, Dogsters and Icee sticks. In addition, our Frozen Beverage segment delivered record fourth quarter and full year sales and profitability, as sales grew 20.6 percent in the quarter and 16.6 percent for the year. This was led by double digit growth of beverage gallons for both the quarter and year as our major sales channels including theaters, convenience, amusement, mass merchandisers and restaurants, continued to show healthy demand.»

«In addition, we continue to successfully execute our operational initiatives focused on continuous improvement, production expansion and supply chain efficiencies across the business. We now have two regional distribution centers in operation, with a third scheduled to open in early calendar 2024. In addition, we have completed the implementation of six new production lines creating additional production capacity in core product categories such as pretzels, churros, and frozen novelties. Together, these initiatives are improving how we operate, creating cost efficiencies and positioning us for continued growth in both sales and profitability.»

«As we look ahead to fiscal 2024, our momentum remains strong, and we are aligned on a strategy that positions us well for continued success. Our focus on cross-selling is creating new product opportunities and channels, providing us the ability to further leverage our product innovation capabilities and the strength of our brands. We believe this momentum, together with improved operational efficiencies positions J+J well to deliver added value for our employees, partners, and shareholders.» For additional information please read the PDF file below (248 KB):