Vending

J&J Snack Foods losses continue in Q2 2021, but improve over Q1

Logo provided.

April 27, 2021

J&J Snack Foods Corp.'s sales decreased 6% from $272.0 million in last year's second quarter to to $256.2 million for the second quarter ending March 27, 2021, according to an earnings release.

Net earnings were $6.1 million in the current quarter, down from $7.3 million in last year's second quarter.

Earnings per diluted share fell from 38 cents in last year's second quarter to 32 cents this year.

Operating income was impacted by approximately $700,000 of COVID-19 related costs.

Sales consistently improved throughout the second quarter led by venue openings, accessibility to the COVID-19 vaccine, improving consumer confidence and the spring season.

This year's 6% Q2 sales decline versus the prior year marked improvement over a 15% decline in Q1 compared to Q1 2020.

Foodservice sales fell just 1% below prior year;s second quarter, moving closer to pre-COVID performance, while retail posted 17% growth.

The frozen beverages business was 32% below the prior year's second quarter which was a significant improvement when compared to Q1 of this year when sales were 41% below the prior year's first quarter.

"Consumers are starting to get out of their homes with more confidence and enjoying experiences they have missed over the last year," Dan Fachner, company president, said in the press release. "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."

The company's Q2 $256.18 million in revenue for Q2 beat analyst expectations by $15.9 million, according to Seennig Alpha, while GAAP earnings per share of 32 cents beat analyst expectations by 19 cents

Shares traded at $164.58 today against a 52-week range of $107.86-$169.72.

For the six months ended March 27, 2021, sales were $497.2 million, a 10% decline from $554.9 million in last year's comparable period.

Net earnings decreased 68% to $7.8 million for the six months compared to $24.4 million last year. Earnings per diluted share decreased 68% to 41 cents from $1.28 last year.

Operating income was impacted by $1.5 million of COVID-19 related costs during this six-month period.

For an update on how the coronavirus pandemic is affecting convenience services, click here.