J&J Snack Foods pledges to increase sales over the long run.
When J&J Snack Foods Corp. reported a quarter with higher net sales but lower net profits, the business’s chief executive stated that the company is still dedicated to long-term profitable sales growth.
J&J Snack Foods Corp.’s net income for the first quarter ended December 28, 2019, was $17,059,000, or 89c per share on the common stock. This represents a 3% decrease from $17,526,000, or 93c per share, during the same period the previous year. An estimated $900,000 in income tax decrease was applied to the fiscal 2019 results. Pre-tax earnings increased to $23,463,000 from $23,095,000 in the first quarter of the 2019 fiscal year.
From $271,612,000 to $282,897,000, net sales grew by 4%.J&J Snack Foods saw a 2% increase in total food service operating income in the first quarter, rising to $18,034,000 from $17,697,000 during the same period last year. Conversely, sales rose by 2% to $183,448,000. Within the food service division, sales of soft pretzels gained 2% to $49,941,000, and sales of churros increased 8% to $16,391,000. Sales of bakery products reached $96,372,000, up 2% from the same period last year.
Senior vice-president and president’s assistant Gerard G. Law stated that J&J Snack is prepared to launch multiple new items in the food service sector, such as savory crackers, funnel cakes, and novel fries.
“We are optimistic about the progress of schools, which has presented challenges for us in the first quarter,” Mr. Law stated in a conference call with investors on January 28.
Operating income in the retail supermarket category came to $2,217,000, a slight increase from $2,211,000 the previous year. The retail supermarket segment’s total sales were $29,426,000, 6% less than they were a year earlier. Sales of frozen juices and ices dropped 8% to $10,093,000, handhelds grew 8% to $2,761,000, and soft pretzels reduced 4% to $9,826,000 within the retail supermarket division.
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“We believe that retail will benefit greatly from the resets,” Mr. Law remarked. We think we’re going to get a spike out of our updated Luigi’s packaging. Ours is astumble out of. We will be launching a broader and more ambitious marketing campaign in the upcoming quarters. Thus, in order to move the top line, we’re doing a lot throughout the company.
The president and CEO of J&J Snack, Gerald B. Shreiber, stated that Auntie Anne’s, which was purchased over two years ago, has proven to be a wise investment.
“Even though it was a rival to us in the supermarket and soft pretzel markets, it now serves as a supplement to our SuperPretzel,” he stated.