J&J Snack Foods Corp. Announces Fiscal 2024 Full-Year and Q4 Earnings
J&J Snack Foods Corp. (NASDAQ:JJSF) reported its financial results for the fourth quarter and full fiscal year ended September 28, 2024.
Key Financial Metrics:
| Metric | FY 2024 | YoY Change | Wall Street Consensus |
|---|---|---|---|
| Revenue | $1.57B | +1.0% | $1.58B |
| EPS (Diluted) | $4.45 | — | $5.18 |
| Adjusted EPS | $4.93 | — | — |
| Metric | Q4 2024 | QoQ Change | YoY Change | Wall Street Consensus (Quarter) |
|---|---|---|---|---|
| Revenue | $426.8M | -3.9% | -3.9% | $429.75M |
J&J Snack Foods reported full-year revenue of $1.57 billion, a slight increase of 1.0% despite challenging market conditions. The company achieved a gross margin of 30.9% with net earnings of $86.6 million, leading to a diluted EPS of $4.45 and an adjusted EPS of $4.93. While these figures missed the Wall Street consensus, operational improvements helped restrain the earnings decline. The fourth quarter saw a decrease in net sales by 3.9%, primarily due to the loss of one sales week from the prior year.
Revenue Performance by Segment:
| Segment | Q4 2024 Revenue | QoQ Change | YoY Change |
|---|---|---|---|
| Food Service | $262.2M | -3.0% | +4.6% (normalized) |
| Retail | $55.9M | -13.7% | -5.7% (normalized) |
| Frozen Beverages | $108.7M | -0.1% | +7.7% (normalized) |
The Food Service segment experienced a 3.0% reported decline in Q4 revenue, but adjusted for the one less week, it saw a 4.6% increase, showcasing resilience in the core operations. However, the Retail and Frozen Beverages segments reported negative and flat results, respectively, overshadowing normalized gains.
Operational Highlights:
- Adjusted EBITDA set a new record for the full year.
- Fourth quarter gross margin stood at 31.8%, reflecting a decline due to softer consumer demand and product mix changes.
- Administrative expense management improved efficiency, contributing to a decrease in total operating expenses by 100 basis points, down to 22.4% of sales.
Executive Commentary:
Dan Fachner, the CEO, emphasized operational efficiencies and profit growth outpacing sales growth, highlighting efforts in refining strategic business activities and gross margin improvements.
Dividend and Stock Information:
No dividends or share repurchase programs were announced. Following the earnings release, JJSF's stock experienced a decrease of approximately 0.87%.
Forward Guidance:
The company expressed optimism about growth prospects in fiscal 2025, particularly expanding Dippin' Dots into retail and leveraging new partnerships but did not provide specific forward guidance.
The company remains poised for growth, capitalizing on its diverse product portfolio, despite the minor quarterly setback, and continues to focus on long-term strategies to bolster shareholder value.
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