J+J Snack Foods: Reports Q4 Fiscal 2024 Results

Mount Laurel / NJ. (jj) J+J Snack Foods Corporation reported financial results for the fourth quarter (13 weeks) and full year (52 weeks) ended September 28, 2024. Chairman, President, and CEO Dan Fachner: «J+J Snack Foods delivered another year of strong financial performance in fiscal 2024. Our results demonstrate that we are successfully executing our strategy, improving operational efficiencies and margins, growing profits faster than sales and expanding growth opportunities across channels and customers. In addition to generating record annual sales and gross profit, we also set a new record for full-year Adjusted Ebitda. For the year, we grew sales 1.0 percent on a reported basis and 2.8 percent comparing results on a normalized basis. I am especially proud of our double-digit growth in Adjusted Ebitda led by an 80-basis point improvement in gross margins to 30.9 percent, along with a 110-basis point improvement in Adjusted Ebitda margins for the year.

«Looking at our fiscal fourth quarter results, net sales decreased 3.9 percent as reported and increased 3.9 percent on a normalized basis. The loss of one week of sales had an even more pronounced impact on the quarter compared to prior year due to losing selling days the first week of July, peak seasonal sales days for our core business. I am pleased with our ability to grow sales on a normalized basis given the challenging consumer environment across many of our key customer channels including amusement, convenience, restaurants, and retail. These softer consumer trends, together with less sales days, had a marked impact on sales of core products including soft pretzels, churros, frozen beverages, frozen novelties, and Dippin Dots, negatively impacting gross margin mix, and creating production and supply chain inefficiencies as we balanced demand and inventory in our plants and distribution centers. This led to a gross margin of 31.8 percent, a 110-basis point decline compared to a record fiscal 2023 fourth quarter gross margin of 32.9 percent. Operating income and Adjusted Ebitda decreased 4.5 percent and 4.0 percent, respectively. Despite these challenges, we delivered net earnings as a percentage of sales of 6.9 percent, in-line with the prior year period, reflecting our success in managing costs and improving operating efficiencies.

«As we enter fiscal 2025, we remain confident in the growth potential of our core products and the success of our new product launches and client partnerships. For example, we continue to expand the breadth and depth of Dippin Dots across the theater channel and are preparing for the upcoming launch into retail. With a more compelling film slate in fiscal 2025, we are optimistic about the growth opportunity of Dippin Dots and Icee beverages in this channel and expect sales of our other products to improve as attendance trends improve. We are also seeing continued success with some of the largest national QSR chains and expect our recent churros launch in this channel to result in new opportunities.

«In summary, we are encouraged by the progress we are making in maximizing sales across all customer channels and enhancing our operational efficiencies. We have a diverse portfolio of beloved products and brands, presenting us with significant growth opportunities, both in terms of the products we sell as well as where we sell them. In addition, our strong balance sheet and liquidity, paired with our experienced leadership team, give us confidence in our ability to create long-term value for our employees, partners, and shareholders.» For additional information please read the PDF file below (251 KB):

20241118-JJ-Q42024.