J+J Snack Foods Reports Q2-2020 Sales and Earnings

Pennsauken / NJ. (jj) J+J Snack Foods Corporation announced sales and earnings for the second quarter ended March 28, 2020. Sales decreased 2 percent to USD 272.0 million from USD 276.3 million in last year’s second quarter. Net earnings decreased 64 percent to USD 7.3 million in the current quarter from USD 20.4 million last year. Earnings per diluted share decreased 65 percent to USD 0.38 for the second quarter from USD 1.08 last year. Operating income decreased 56 percent to USD 11.0 million in the current quarter from USD 24.8 million in the year ago quarter.

For the six months ended March 28, 2020, sales increased 1 percent to USD 554.9 million from USD 547.9 million in last year’s first half. Net earnings decreased 36 percent to USD 24.4 million in the six months from USD 37.9 million last year. Earnings per diluted share decreased 36 percent to USD 1.28 from USD 2.00 last year. Operating income decreased 30 percent to USD 32.7 million this year from USD 46.9 million last year.

The Company also said that sales for the first 4 weeks of its third quarter that will end June 27, 2020 were down approximately 45 percent from a year ago. Although it cannot estimate whether sales will continue to be down at the same rate for the balance of the quarter, the Company said that it might have an operating loss in the quarter which would compare to operating income of USD 39 million in the year ago June quarter if sales continue to be down at the same rate. Approximately 2/3 of the Company’s sales are to venues and locations that have shut down or sharply curtailed their foodservice operations so the Company anticipates Covid-19 will continue to have a negative impact on its business. As the Company has USD 267 million of cash and marketable securities on its balance sheet, it does not expect to have any liquidity issues, nor does it anticipate a material amount of its assets would be impaired.

Gerald B. Shreiber, J+J’s President and Chief Executive Officer, commented, «We have good management in place, strong brands and a broad base of highly respected customers. We continue to monitor and adjust our costs and expenses as we evaluate our business on a daily, weekly, and monthly basis. We are monitoring consumer behavior, customer shifts, and industry needs to adapt our product and marketing mix for the post pandemic landscape. In what is the true JJSF entrepreneurial spirit, we are ready to fight our way back to sales growth and business performance when customers begin to re-open this summer. We are being careful not to reduce our costs so much that we won’t be able service our customers when they return, making sure that we have the proper staffing and resources in place for when business opens up again. And at the same, we are working around the clock updating preventative measures to keep our employees safe. We have always been a company that has been cautious in the way we spend and use our cash. Today we have USD 267 million in cash and securities, we are protecting it and using it to prepare for the future as we monitor and shape what that looks like in this changing landscape.»