Q4 2024 J & J Snack Foods Corp Earnings Call Transcript
Key Points
- J&J Snack Foods Corp (JJSF) achieved record annual sales and gross profit in fiscal 2024, with adjusted EBITA increasing by 10.2%.
- The company improved its gross margin rate by 80 basis points to 30.9% and adjusted EBITA margins by 110 basis points for the full year.
- J&J Snack Foods Corp (JJSF) expanded new products and incremental placements, even amid consumer softness, positioning itself for future growth.
- The company successfully rolled out Dippin Dots in major theater chains and Dave & Buster's locations, with plans for further expansion.
- Operational investments have led to notable improvements in efficiency metrics, with supply chain initiatives adding new capacity and creating efficiencies.
- Fourth quarter sales were impacted by one less week of selling days, resulting in a decrease of 3.9% on a reported basis.
- Softer consumer trends and fewer selling days affected sales of higher-margin products, leading to a less favorable gross margin mix.
- Operating income and adjusted EBITA decreased by 4.5% and 4% respectively in the fourth quarter.
- The company faced challenges in key channels such as convenience, theaters, and restaurants, impacting sales of soft pretzels and frozen novelties.
- Inflationary pressures, particularly in cocoa and sugar, are prompting considerations for further price increases.
Any such forward-looking statements represent management's estimates as of the date of the call today. November 14th, 2024. While we may elect to update forward-looking statements at some point in the future, we disclaim any obligation to do so even if subsequent events cause expectations to change. In addition, we may also reference certain nongaap measures on the call today including adjusted normalized sales if it do adjusted operating income or adjusted earnings per share, all of which are reconciled to the nearest GAAP measure in the company's earnings press release, which can be found in our investor relations section of our website.
Joining me on the call today is Dan Fasher, Chief Executive Officer along with Ken Plunk, the Chief Financial Officer following management's prepared remarks. We will open the call for a question and answer session with that. I would now like to turn the call over to Mr Fer. Please go ahead, Dan.
Thank you, Roberto. Good morning everyone. And thank you for
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