J&J Snack Meals’ Fiscal 2022 Fourth Quarter Income Will increase 23.9% to a Quarterly Report $400.4m

PENNSAUKEN, N.J., Nov. 14, 2022 (GLOBE NEWSWIRE) — J&J Snack Meals Corp. (NASDAQ: JJSF) (the “Firm”) at this time reported monetary outcomes for the fourth quarter and full yr ended September 24, 2022.

Dan Fachner, J&J Snack Meals President and CEO, commented, “We’re happy with our sturdy top-line progress throughout all three of our enterprise segments, together with a 24% improve in internet gross sales for the fiscal fourth quarter and a 21% improve in internet gross sales for the total yr. These outcomes mark a fourth consecutive quarterly income document, together with full yr income over $194 million higher than our prior highest annual income. Adjusted EBITDA elevated 4% for the quarter in comparison with prior yr whilst we proceed to expertise unprecedented price inflation. As an organization, we stay targeted enhancing profitability.”

“Our skill to ship sturdy leads to a really difficult price and working atmosphere displays the success of our sales-centric initiatives. Our concentrate on new product innovation, leveraging core-brands to create compelling product extensions, repositioning how we market our manufacturers, and driving cross-selling alternatives is driving this gross sales momentum. As well as, we proceed to see sturdy demand for our higher-margin core merchandise together with continued power throughout key gross sales channels and elevated demand of our merchandise with each new and present prospects. We’re additionally making progress on our operational initiatives targeted on steady enchancment, together with particular plant tasks targeted on lowering price and inefficiencies, centralizing our procurement and R&D capabilities, increasing and enhancing our manufacturing line capabilities, and optimizing our provide chain. We anticipate these actions will lead to important contributions to our total leads to the approaching fiscal years, and assist to offset the continued prices pressures throughout the enterprise.

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“Regardless of the document gross sales, we proceed to expertise traditionally excessive inflation pressures throughout nearly each phase of the enterprise together with wages, gas, packaging, transport and commodities. Whereas our revenue has been considerably impacted by this dynamic, we’re happy with our quarterly sequential enchancment in gross margin and anticipate to see additional progress within the coming quarters because the impact of our most up-to-date pricing, product combine, SKU administration initiatives take maintain.”

“In abstract, we’re executing on our technique. We’re aggressively rising gross sales led by the power of our core manufacturers and making progress offsetting a historic price atmosphere. We’re properly positioned as we head into fiscal 2023 and anticipate to proceed our sturdy gross sales momentum whereas additionally enhancing profitability. I’m assured that our technique will proceed our lengthy historical past of making worth for our workers, companions and shareholders.”

Complete Firm Fourth Quarter Highlights

Internet gross sales elevated 23.9% to $400.4 million in This fall of fiscal 2022, in comparison with This fall of fiscal 2021.

Key highlights embody:

• Gross sales included roughly $31.5 million in income from Dippin’ Dots. Excluding the contribution from Dippin’ Dots, gross sales elevated by 14.2%, in comparison with This fall ’21.

• Natural gross sales progress was pushed by progress throughout all three enterprise segments, led by our core merchandise together with pretzels, churros, frozen novelties and frozen drinks.

• Meals Service gross sales exceeded This fall ’21 by 29.2%.

• Retail phase gross sales exceeded This fall ’21 by 11.3%.

• Frozen Beverage phase gross sales exceeded This fall ’21 gross sales by 18.2%.
  

Gross revenue as a proportion of gross sales was 28.9% in This fall ’22, in contrast favorably to twenty-eight.4% in This fall ’21, and confirmed an enhancing development versus Q3 ‘22 regardless of the nonetheless important inflationary pressures going through our {industry}. Key components together with flour, oils, eggs, meats, sugar and dairy proceed to expertise inflation pressures, and have been roughly 4% larger than Q3 ’22 and 40% larger than This fall ’21. Pricing actions applied earlier in fiscal 2022 together with a 3rd worth improve on the finish of This fall ’22 mixed with improved combine helped to partially offset these headwinds and are anticipated to offer extra advantages in future quarters.

Complete working bills of $94.2 million represented 23.5% of gross sales for the quarter, in comparison with 20.6% in This fall ’21, reflecting ongoing inflationary pressures throughout distribution and administrative prices. Distribution prices represented 12.4% of gross sales within the quarter, versus 10.1% within the prior yr interval, however improved in comparison with 12.7% in Q3 ’22. Going ahead, we anticipate our strategic initiatives to enhance logistics administration and improve effectivity throughout our distribution community and our provide chain technique will allow us to cut back price and drive important financial savings over the approaching quarters and years.

Advertising and promoting bills represented 6.4% of gross sales, versus 6.5% within the prior yr interval, and 6.3% in Q3’ 22. Administrative bills have been 4.3% of gross sales in This fall ’22, in comparison with 3.6% in This fall ’21 and 4.1% in Q3’ 22.

Adjusted working revenue was $25.8 million within the fourth quarter of fiscal 2022, in comparison with $27.6 million within the prior yr interval, with the lower pushed by the continued inflationary pressures, considerably offset by progress throughout all three of our enterprise segments. This led to internet earnings in This fall ’22 of $17.3 million, in comparison with $18.9 million in This fall ’21. Our efficient tax charge was 19% in This fall ’22. This decrease tax charge in This fall 2022 had a optimistic affect on our monetary outcomes for the quarter.

Complete Firm Fiscal 2022 Highlights

Internet gross sales elevated 20.6% to $1.381 billion for full yr fiscal 2022, versus full yr fiscal 2021, reflecting sturdy efficiency throughout the total yr.
Key highlights embody:

• Meals Service gross sales grew 20.4% in fiscal 2022, in comparison with the prior yr, led by frozen novelties, which benefited from the Dippin’ Dots acquisition, in addition to churros, handhelds, pretzels, and bakery.

• Retail gross sales continued their sturdy efficiency rising 7.1%, pushed by mushy pretzels and our frozen novelties enterprise, and offset by a decline in our handhelds enterprise.

• Frozen Drinks phase gross sales grew 32.1% as amusement, stay occasion venues, comfort, eating places, and retail venues continued to see growing visitation metrics through-out the yr, together with the continued restoration within the theater channel.
  

Gross revenue as a proportion of gross sales improved to 26.8% for fiscal 2022, in comparison with 26.1% for the prior yr, with the rise largely attributable to the good thing about elevated top-line demand, favorable product combine and corresponding margin efficiencies.

Complete working bills elevated to 22.3% of gross sales, in comparison with 19.9% for fiscal 2021 reflecting the numerous affect inflation is having throughout nearly all of our price line objects, together with industry-wide freight and distribution price will increase, wage will increase and total administrative price hikes. Distribution price have been 11.6% of gross sales for the yr versus 9.5% within the prior yr interval. Advertising and promoting bills have been 6.6% of gross sales, in comparison with 6.8% final yr, pushed by simpler funding of promoting {dollars} aligned with new product launches and rebranding of our core churros model. Administrative bills have been 4.0% of gross sales this yr, in comparison with 3.5% final yr.
        
Fiscal 2022 working revenue decreased to $61.8 million, versus $71.2 million for fiscal 2021, largely as the results of the aforementioned inflation pressures on working bills.

Fiscal 2022 internet earnings decreased to $47.2 million, in comparison with $55.6 million in fiscal 2021. Our efficient tax charge was 24% in fiscal 2022.

Meals Providers Section Fourth Quarter Highlights

• This fall ’22 meals service gross sales exceeded This fall ’21 by $58.0 million, or a rise of 29.2%, together with roughly $31.5 million in gross sales from the latest acquisition of Dippin’ Dots.

• Out of doors venues, together with stadiums and amusement parks, in addition to faculties and eating places and strategic accounts continued to expertise sturdy gross sales throughout all of our product traces, together with 228% improve frozen novelties largely because of the acquisition of Dippin’ Dots, a 43.8% improve in handhelds, a 38.4% improve in churros and a ten.8% and a couple of.8% improve in bakery and mushy pretzel gross sales, respectively, in comparison with This fall ‘21.

• Gross sales of latest merchandise have been roughly $4 million pushed primarily by new bakery merchandise, expanded placement of a Bavarian pretzel stick and an empanada product at main comfort prospects.

• This fall ’22 working revenue decreased 31.8% to $6.3 million reflecting the numerous improve in enter, manufacturing and distribution prices.

Retail Section Fourth Quarter Highlights

• This fall ’22 retail gross sales elevated 11.3% to $53.5 million, in comparison with This fall ’21.

• Delicate pretzels gross sales grew by 29.5%, in comparison with This fall ’21, whereas handhelds gross sales grew by 25.5%, and frozen novelty gross sales elevated 6.6%. Biscuit gross sales decreased 14.8%, versus the prior yr interval.

• New product innovation contributed roughly $1.5 million within the quarter pushed by the continued success of the brand new Luigi’s gelato product and extra placement of Dogsters skus at main grocery retailers.

• Working revenue decreased 81.4% to $1.1 million, versus the prior yr interval pushed by larger price of products offered and transport and distribution associated bills.

Frozen Drinks Section Fourth Quarter Highlights      

• Frozen beverage phase gross sales have been $90.2 million and beat This fall ’21 gross sales by 18.2%.

• Beverage gross sales grew 19.5%, or $9.3 million larger than in This fall ’21 led by enhancing developments at journey, sporting occasions, concert events, amusement parks and theater venues.

• Machine Service revenues elevated 11.8%, versus the prior yr interval reflecting wholesome upkeep name volumes, whereas tools gross sales elevated 30.4% pushed by sturdy progress from massive QSR and comfort prospects.

• This fall ’22 working revenue improved to $14.2 million, in comparison with a This fall ’21 working revenue of $10.2 million, as sturdy gross sales drove leverage throughout the enterprise.

Convention Name
J&J Snack Meals Corp. will host a convention name to debate outcomes and enterprise outlook on November 15, 2022, at 10:00 a.m. Japanese Time. Convention name members ought to register by clicking on this Registration Link to obtain the dial-in quantity and a private PIN, that are required to entry the convention name. A stay audio webcast of the convention name may even be accessible on the Traders homepage at www.jjsnack.com.

About J & J Snack Meals Corp.
J & J Snack Meals Corp. (NASDAQ: JJSF) is a frontrunner and innovator within the snack meals {industry}, offering progressive, area of interest and reasonably priced branded snack meals and drinks to foodservice and retail grocery store shops. Manufactured and distributed nationwide, our principal merchandise embody SUPERPRETZEL, the #1 mushy pretzel model on this planet, in addition to internationally recognized ICEE and SLUSH PUPPIE frozen drinks, DIPPIN’ DOTS ice cream, LUIGI’S Actual Italian Ice, MINUTE MAID* frozen ices, WHOLE FRUIT sorbet and frozen fruit bars, SOUR PATCH KIDS** Flavored Ice Pops, Tio Pepe’s & CALIFORNIA CHURROS, and THE FUNNEL CAKE FACTORY funnel truffles and several other bakery manufacturers inside DADDY RAY’S, COUNTRY HOME BAKERS and HILL & VALLEY. For extra data, please go to http://www.jjsnack.com.

*MINUTE MAID is a registered trademark of The Coca-Cola Firm.
**SOUR PATCH KIDS is a registered trademark of Mondelēz Worldwide group, used beneath license.

Cautionary Assertion Concerning Ahead-Trying Data
This press launch contains forward-looking statements inside the that means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended. All statements relating to the Firm’s anticipated future monetary place, outcomes of operations, income progress and revenue ranges, money flows, enterprise technique, budgets, projected prices, capital expenditures, merchandise, aggressive positions, progress alternatives, plans and aims of administration for future operations, in addition to statements that embody phrases akin to “anticipate,” “if,” “consider,” “plan,” “targets,” “estimate,” “anticipate,” “intend,” “might,” “might,” “ought to,” “will,” and different comparable expressions are forward-looking statements. This contains, with out limitation, our statements and expectations relating to any present or future restoration in our {industry} and our profitability-related steady enchancment initiatives in our operations. Such forward-looking statements are inherently unsure, and readers should acknowledge that precise outcomes might differ materially from the expectations of administration. We don’t undertake an obligation to replace such forward-looking statements. Components which will trigger precise outcomes to vary materially from these within the forward-looking statements embody shopper spending, worth competitors, acceptance of latest merchandise, the pricing and availability of uncooked supplies, transportation prices, adjustments within the aggressive market the uncertainty and supreme financial affect of the COVID-19 pandemic, and different dangers recognized in our annual report on Type 10-Okay, and our different filings with the Securities and Trade Fee. Many of those components are exterior of the Firm’s management.

Non-GAAP Monetary Measures
Adjusted EBITDA consists of internet earnings adjusted to exclude: revenue taxes (profit); funding revenue; curiosity expense; depreciation and amortization; share-based compensation expense; COVID-19 associated bills (recoveries); internet (achieve) loss on sale or disposal of property; impairment fees, restructuring prices, merger and acquisition prices, acquisition associated stock changes, and integration prices.

Adjusted Working Earnings consists of working revenue adjusted to exclude: COVID-19 associated bills (recoveries); impairment fees, restructuring prices, merger and acquisition prices, acquisition associated amortization bills and stock changes, and integration prices.

Adjusted Earnings per Diluted Share consists of internet earnings adjusted to exclude: COVID-19 associated bills (recoveries); impairment fees, restructuring prices, merger and acquisition prices, acquisition associated amortization bills and stock adjustment, and integration prices. For functions of comparability, the revenue tax impact of pre-tax changes is decided utilizing statutory tax charges.

This press launch comprises sure non-GAAP monetary measures; Adjusted EBITDA, Adjusted Working Earnings, and Adjusted Earnings per Diluted Share. A “non-GAAP monetary measure” is a numerical measure of an organization’s monetary efficiency that excludes or contains quantities in order to be completely different than probably the most instantly comparable measure calculated and offered in accordance with U.S. typically accepted accounting ideas (“GAAP”) within the statements of revenue, stability sheets, or statements of money circulation of the corporate. Pursuant to relevant reporting necessities, the corporate has supplied reconciliations beneath of non-GAAP monetary measures to probably the most instantly comparable GAAP measure.

The non-GAAP monetary measures offered inside the Firm’s earnings launch will not be indicators of our monetary efficiency beneath GAAP and shouldn’t be thought-about as a substitute for the relevant GAAP measure. These non-GAAP measures have limitations as analytical instruments, and you shouldn’t contemplate them in isolation or as an alternative choice to evaluation of our outcomes as reported beneath GAAP. As well as, in evaluating these non-GAAP measures, you need to be conscious that sooner or later we might incur revenue, bills, positive factors and losses, just like the changes on this press launch. Our presentation of those non-GAAP measures shouldn’t be construed as an inference that our future outcomes shall be unaffected by uncommon or rare objects. We compensate for these limitations by offering equal prominence to our GAAP outcomes and utilizing non-GAAP measures solely as supplemental shows.

The non-GAAP measures offered are utilized by administration to judge the Firm’s enterprise efficiency and profitability by excluding sure objects that might not be indicative of our recurring core enterprise working outcomes. The Firm believes that these measures present extra readability for traders by excluding particular revenue, bills, positive factors and losses, in an effort to point out comparable enterprise working outcomes for the intervals offered. Equally, Administration believes these adjusted measures are helpful efficiency measures as a result of sure objects included within the calculations might both masks or exaggerate developments within the Firm’s ongoing working efficiency. See the reconciliation of Non-GAAP Monetary Measures beneath.

Investor Contact:
Joseph Jaffoni, Norberto Aja or Jennifer Neuman
JCIR
(212) 835-8500
jjsf@jcir.com