J&J Snack Foods Corp (JJSF) Reports Record Quarterly Revenue and Strong Profit Growth
Record fourth-quarter revenue of $443.9 million, up 10.8% year-over-year.
Operating income for the quarter jumps to $41.7 million, a 93.0% increase.
Net earnings rise by 75.7% to $30.4 million, with earnings per diluted share up 74.4%.
Full-year fiscal 2023 revenue grows by 12.9% to $1.56 billion.
On November 15, 2023, J&J Snack Foods Corp (NASDAQ:JJSF) released its 8-K filing, announcing a robust performance for the fourth quarter and full fiscal year ended September 30, 2023. The company achieved a record quarterly revenue of $443.9 million, marking a 10.8% increase compared to the same period last year. This growth was driven by significant sales increases across its Food Services, Retail, and Frozen Beverages segments.
Financial Performance Overview
J&J Snack Foods Corp (NASDAQ:JJSF) reported a substantial rise in operating income, which soared by 93.0% to $41.7 million in the fourth quarter. For the full year, operating income reached $109.5 million, representing a 77.2% increase from the previous fiscal year. Net earnings followed suit, with a 75.7% jump to $30.4 million for the quarter and a 67.1% rise to $78.9 million for the year. Earnings per diluted share for the quarter and full year were up by 74.4% and 65.9%, respectively.
The company's gross profit margin improved significantly, reaching 32.8% in the fourth quarter, compared to 28.9% in the same quarter of the previous year. This improvement was attributed to increased volume, improved product mix, and the stabilization of inflationary pressures. Adjusted EBITDA for the quarter increased by 55.2% to $62.2 million, and for the full year, it grew by 46.3% to $181.6 million.
Segment Highlights and Strategic Initiatives
President and CEO Dan Fachner highlighted the success across J&J Snack Foods Corp (NASDAQ:JJSF)'s core brands, with pretzels, churros, and frozen novelties showing healthy growth. The acquisition of Dippin Dots contributed significantly to the company's performance, achieving record sales and profitability. The Retail segment experienced robust growth, particularly with new product placements and the introduction of Hola! Churros into retail. The Frozen Beverage segment also reported record sales and profitability, driven by double-digit growth in beverage gallons.
Fachner noted the company's operational initiatives, including continuous improvement, production expansion, and supply chain efficiencies. These initiatives have led to the opening of two regional distribution centers, with a third scheduled for early 2024, and the implementation of six new production lines, which have created additional capacity in core product categories.
As we look ahead to fiscal 2024, our momentum remains strong, and we are aligned on a strategy that positions us well for continued success. Our focus on cross-selling is creating new product opportunities and channels, providing us the ability to further leverage our product innovation capabilities and the strength of our brands. We believe this momentum, together with improved operational efficiencies positions J&J well to deliver added value for our employees, partners, and shareholders, said Fachner.
Balance Sheet and Cash Flow Highlights
The balance sheet of J&J Snack Foods Corp (NASDAQ:JJSF) remains solid, with total assets increasing to $1.28 billion as of September 30, 2023, from $1.22 billion the previous year. The company's cash and cash equivalents grew to $49.6 million, up from $35.2 million. Total stockholders' equity also saw an increase, reaching $911.5 million, up from $863.2 million.
The consolidated statements of cash flows reflect the company's strong earnings, with net earnings of $78.9 million for the fiscal year 2023. The company's operational efficiency and strategic initiatives have translated into tangible financial results, positioning J&J Snack Foods Corp (NASDAQ:JJSF) for continued growth and profitability in the coming fiscal year.
Investors and stakeholders can look forward to the conference call scheduled for November 16, 2023, to discuss the results and business outlook in greater detail.
For a more comprehensive understanding of J&J Snack Foods Corp (NASDAQ:JJSF)'s financial performance, readers are encouraged to review the full earnings release and financial statements.
Explore the complete 8-K earnings release (here) from J&J Snack Foods Corp for further details.
This article first appeared on GuruFocus.
