J & J Snack Foods Reports Fiscal 2024 Fourth Quarter Revenue of $426.8 Million

Core Insights - J&J Snack Foods Corp. reported a full-year revenue increase of 1.0% to $1.57 billion, with a gross margin of 30.9% and net earnings of $86.6 million, leading to diluted EPS of $4.45 and adjusted EPS of $4.93 for fiscal 2024 [1][3][16]. Financial Performance - Fourth quarter net sales decreased by 3.9% to $426.8 million, while full-year net sales increased by 1.0% [1][8]. - Operating income for the fourth quarter was $39.8 million, down 4.5%, while full-year operating income increased by 7.3% to $117.5 million [1][16]. - Net earnings for the fourth quarter were $29.6 million, a decrease of 2.6%, while full-year net earnings increased by 9.7% [1][16]. - Adjusted EBITDA for the full year reached a record $200.1 million, reflecting a 10.2% increase [1][3]. Segment Performance - Food Service segment sales declined by 3.0% to $262.2 million in Q4, but increased by 4.6% on a normalized basis [8][17]. - Retail segment sales fell by 13.7% to $55.9 million in Q4, with a normalized decrease of 5.7% [8][18]. - Frozen Beverage segment sales remained flat at $108.7 million in Q4, but increased by 7.7% on a normalized basis [8][19]. Operational Efficiency - Gross profit as a percentage of sales was 31.8% in Q4, reflecting a 110 basis point decline compared to the previous year [9]. - Total operating expenses represented 22.4% of sales in Q4, showing a 100 basis point improvement from the prior year [10]. - Distribution costs were flat at 10.8% of sales, while marketing and selling expenses increased to 7.3% of sales [11][15]. Future Outlook - The company remains optimistic about growth potential in core products and new product launches, particularly in the Dippin Dots and Icee beverages channels [5][6]. - The leadership team expresses confidence in maximizing sales across all customer channels and enhancing operational efficiencies [7].