Vending

J & J Snack Foods makes record sales, profits in Q4, FY 2023

Logo: J & J Snack Foods Corp.

November 27, 2023

J & J Snack Foods Corp. reported record sales and profits for both Q4 and FY 2024, according to an earnings report. Highlights include:

• Net sales rose from $400.4 million in Q4 2022 to $443.9 million in the quarter ending Sept. 30, 2023.
• Net earnings rose from $17.3 million to $30.4 million in the comparative quarters.
• EPS rose from 90 cents to $1.57 on a diluted basis and from 90 cents to $1.58 on a basic basis.
• Adjusted EPS on a diluted basis rose from $1.05 to $1.73.
• Foodservice sales rose from $256.7 million to $270.3 million.
• Retail supermarket sales rose from $53.5 million to $64.8 million.
• Frozen beverage sales rose from $90.2 million to $108.7 million.
• Sales included approximately $35.2 million in revenue from Dippin' Dots, which reported as a part of frozen novelties in the foodservice segment. Dippin' Dots sales exceeded Q4 2022 sales by 11.7%.
• Full-year net sales increased 12.9% from $1.38 billion in 2022 to $1.56 billion, with strong performance across all three business segments. The fiscal 2023 year includes an extra week compared to the prior year and contributed an estimated 2% to sales growth and approximately $2 million in operating profit.
• Full-year net earnings rose from $47.3 million to $78.9 million.
• Full-year EPS rose from $2.46 to $4.08 on a diluted basis and from $2.47 to $4.10 on a basic basis.
• Full-year EPS on a diluted basis rose from $2.76 to $4.50.
• Full-year foodservice sales rose from $872.7 million to $981.8 million.
• Full-year retail sales rose from $197.9 million to $215.4 million.
• Full-year frozen beverage sales rose from $310 million to $361.5 million.

The company declared a dividend to 73.5 cents per share payable for shareholders of record on Dec. 19.

Shares traded at $168.32 on Friday against a 52-week range of $133.27 to $177.71.

The $443.9 million in quarterly revenue beat analyst expectations by $22.85 million while the non-GAAP EPS of $1.73 beat expectations by one cent, according to Seeking Alpha.

"J&J Snack Foods ended fiscal 2023 on a strong note, including record sales and profitability for both the fourth quarter and full year," Dan Fachner, president and CEO, said in the press release. "Fiscal fourth quarter net sales increased to a record $443.9 million, driven by food services sales growth of 5.3%, retail segment sales growth of 21.2% and frozen beverages sales growth of 20.6%."