Vending

J&J Snack Foods boosts Q4, FY 2022 sales, earnings dip

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November 15, 2022

J&J Snack Foods Corp. lifted its Q4 and full year 2022 sales, but it suffered earnings slides. Organic sales growth was driven by growth across all three business segments, led by core products including pretzels, churros, frozen novelties and frozen beverages.

Quarterly highlights include:

Net sales increased 23.9%, from $323.06 million in Q4 2021 to to $400.4 million in the quarter ending Sept. 24, 2022.
Sales included approximately $31.5 million in revenue from Dippin' Dots, which the company acquired earlier this year.
Net earnings fell from $18.8 million to $17.3 million in the comparative quarters.
Diluted EPS fell from 98 cents to 89 cents, while basic EPS fell from 99 cents to 90 cents.
Foodservice sales rose 29.2%.
Retail sales rose 11.3%.
Frozen beverage sales rose 18.2%.

Full year highlights include:

Net sales increased 20.6% to $1.381 billion, reflecting strong performance across the full year.
Sales included approximately $31.5 million in revenue from Dippin' Dots.
Net earnings decreased from $55.6 million in fiscal 2021 to $47.2 million.
Diluted EPS fell from $2.91 to $2.46, while basic EPS fell from $2.92 to $2.47.
Foodservice sales grew 20.4, led by frozen novelties, which benefited from the Dippin' Dots acquisition, as well as churros, handhelds, pretzels and bakery.
Retail sales grew 7.1%, driven by soft pretzels and frozen novelties, offset by a decline in handhelds.
Frozen beverage sales grew 32.1% as amusement, live event venues, convenience, restaurants and retail venues continued to see increasing visitation metrics throughout the year, including the ongoing recovery in the theater channel.

Shares traded at $137.97 Monday against a 52-week range of $117.45-$165.78.

The company declared a 70-cent dividend, payable Jan. 10, to shareholders of record Dec. 19.

"We are pleased with our strong top-line growth across all three of our business segments, including a 24% increase in net sales for the fiscal fourth quarter and a 21% increase in net sales for the full year," Dan Fachner, president and CEO, said in the press release. "These results mark a fourth consecutive quarterly revenue record, including full year revenue over $194 million greater than our prior highest annual revenue."