PENNSAUKEN, NJ. — Executives at J&J Snack Meals plan to develop the attain of Dippin’ Dots, which the corporate acquired in June. A enterprise into retail is feasible.
“We have already made important progress introducing the Dippin’ Dots gross sales staff to new clients and channels, together with under-penetrated markets and theaters and foodservice, and with Dippin’ Dots, we’re proud to announce the primary cross-brand collaboration, the brand new Icee cherry and blue raspberry flavors launching in fiscal Q1,” stated Dan Fachner, president and chief government officer, in a Nov. 15 earnings name to debate fiscal-year outcomes. “We’re additionally beginning to discover new product idea designed to increase Dippin’ Dots into the retail channels.”
Gross sales within the firm’s foodservice phase within the fourth quarter ended Sept. 24 elevated 29% to $257.8 million from $198.8 million. Dippin’ Dots accounted for $31.5 million.
Within the fiscal yr companywide, web earnings of $47.2 million, or $2.47 per share on the widespread inventory, had been down 15% from $55.6 million, or $2.92 per share, within the earlier fiscal yr. Internet gross sales of $1.38 billion had been up 21% from $1.14 billion. Working bills elevated to 22.3% of gross sales, up from 19.9% in fiscal 2021. The rise mirrored freight and distribution price will increase, wage will increase and administrative price hikes.
“Like virtually each different firm this yr, our bottom-line outcomes had been impacted by the inflationary impression on uncooked supplies and escalating provide chain prices,” Mr. Fachner stated. “All through the fiscal yr, we noticed sequential and year-over-year will increase in prices related to components, truck driver wages, exterior carriers, storage and gasoline.”
J&J Snack Meals has elevated costs thrice over the previous 14 months.
“Gross margin traits have already improved within the second half of fiscal 2022 due to these actions and we count on to see continued advantages in fiscal 2023,” Mr. Fachner stated. “Going ahead, we’ll proceed to give attention to improved manufacturing efficiencies, cost-reduction initiatives and product combine. Because the inflationary atmosphere stabilizes and we execute these initiatives, we’re assured that our enterprise will ship greater margins together with persevering with sturdy gross sales.”
Growing costs a fourth time could possibly be tougher.
“I feel the atmosphere will get harder and harder to take pricing at this level,” Mr. Fachner stated. “I feel it’s acceptable on the beverage aspect as a result of it’s usually finished yearly. I feel the opposite piece of our enterprise will get harder and harder. We’re watching it carefully, sort of understanding what others are doing, after which watching what commodities are doing on the similar time.”
Foodservice gross sales within the fiscal yr elevated 20% to $872.7 million, led by frozen novelties, churros, handhelds, pretzels and bakery. Frozen novelties benefited from the Dippin’ Dots acquisition.
“We have now a number of Icee checks in progress with quick-serve eating places, together with a multi-store take a look at with a hamburger chain with over 350 areas,” Mr. Fachner stated. “We have now additionally onboarded a variety of new clients, together with a serious comfort retailer buyer, a brand new cinema chain and Peter Piper Pizza reflecting our efforts round product extensions.”
Retail gross sales grew 7% to $197.9 million, pushed by comfortable pretzels and frozen novelties.
“In our frozen novelty enterprise, we’re launching new Icee and Slush Puppie frozen pots to enrich the remainder of our sturdy frozen novelty portfolio,” Mr. Fachner stated.
Frozen beverage gross sales elevated 32% to $310 million as extra shoppers visited amusement parks, reside occasion venues, comfort shops, eating places and retail venues.
Within the fourth quarter companywide for Pennsauken-based J&J Snack Meals, web earnings of $17.3 million, or 90¢ per share, had been down 8% from $18.9 million, or 99¢ per share. Internet gross sales elevated 24% to $400.4 million, up 24%.