COVID-19 takes an enormous half within the exercise of J&J Snack | 2020-04-29

PENNSAUKEN, NJ — As an organization that generates about two-thirds of its income from venues and areas which have closed or closely curtailed their restaurant operations, J&J Snack Meals has suffered from a troublesome second quarter.

J&J Snack Meals internet earnings for the second quarter ended March 28 totaled $7.31 million, or 39¢ per share on widespread inventory, down 64% from $20.35 million, or 1 $.08 per share, the identical interval a yr in the past. Internet gross sales decreased 1.6% to $272.04 million from $276.3 million.

“We now have good administration in place, robust manufacturers and a big base of extremely revered prospects,” Gerald B. Shreiber, president and chief govt, stated in a convention name with analysts on April 28. “We proceed to observe and modify our prices and bills as we assess our enterprise on a each day, weekly and month-to-month foundation. We’re monitoring shopper conduct, buyer shift and trade must undertake our product and advertising combine for the post-pandemic panorama.

“Within the true entrepreneurial spirit of J&J Snack Meals, we’re able to combat again to gross sales development and enterprise efficiency when prospects start to reopen this summer season. Needless to say all of our amusement parks and theme and our sports activities venues are closed or haven’t but began the 2020 seasons.

“We’re cautious to not cut back our prices to the purpose that we can not serve our prospects once they return, making certain that we’ve got the suitable employees and sources when enterprise reopens. And on the identical time, we’re working across the clock, updating preventive measures to make sure the security of our workers. We now have at all times been a prudent firm in how we spend and use our cash. »

J&J Snack Meals’ foodservice working revenue fell 59% within the second quarter, from $19.18 million to $7.95 million. Gross sales decreased 2.2% to $171.33 million from $175.07 million. Throughout the foodservice division, gross sales of baked items have been $89.41 million, up 5.9% from the identical quarter a yr in the past, whereas gross sales of churros fell 6.5% to $14.75 million and mushy pretzel gross sales fell 8.4% to $45.66 million.

Within the retail grocery store section within the second quarter, working revenue was $4.34 million, up 43% from $3.04 million within the second quarter a yr earlier. . Gross sales elevated almost 10% from $34.17 million to $37.57 million. Within the grocery store retail section, gross sales of soppy pretzels elevated 14% to $12.33 million. Frozen juice and ice cream gross sales elevated 8% to $15.86 million, cookie gross sales elevated 4.3% to $6.63 million, and pocket objects gross sales elevated. climbed 26% to $3.12 million.

Within the frozen beverage section, J&J Snack suffered an working lack of $1.31 million, in comparison with an working revenue of $2.55 million in the identical interval a yr in the past. Gross sales fell 6% to $63.14 million.

Firm-wide, internet earnings for the six-month interval ended March 28 was $24.37 million, or $1.29 per share, down 36% from 37.88 million, or $2.02 per share, over the identical interval a yr in the past. Six-month internet gross sales elevated 1.3% to $554.94 million from $547.91 million.