PENNSAUKEN, NJ. – When J&J Snack Meals Corp. will start to point out wholesome gross sales progress once more, firm executives might need to hum the 1957 promoting jingle “Let’s all go to the foyer.” The return of shoppers to film theaters may result in improved monetary outcomes for the Pennsauken-based firm.
For now, the corporate will discover different classes for its merchandise, together with Icee.
J&J Snack Meals reported internet revenue of $1.8 million, or 9¢ per share on widespread inventory, within the first quarter ended December 26, 2020, down from $17.1 million, or 90¢ per share, within the first quarter of the earlier yr. Working revenue fell from $21.7 million to $578,000, with COVID-19-related prices impacting roughly $730,000. Gross sales had been $241 million, down 15% from $282.9 million within the first quarter a yr earlier. The drop marked an enchancment from final quarter, when gross sales had been down 19%.
Foodservice gross sales of $160.4 million had been down 13% from $183.5 million within the first quarter a yr earlier. Venues and chains like theme parks, colleges and theaters continued to function at restricted capability resulting from COVID-19, which impacted foodservice gross sales. The 13% drop is an enchancment from the 21% drop final fourth quarter.
“I feel there are individuals on the market who need to exit and see motion pictures,” Daniel Fachner, president of J&J Snack Meals, mentioned in an earnings name Jan. 26. “We simply do not understand how quick it should occur, so we actually tried to alter and give attention to new gross sales and new channels.”
He mentioned Icee was underdeveloped within the fast service and informal eating classes.
“Our guys are on the market knocking on doorways on daily basis, and we now have testing in place and hopefully we’ll achieve success,” Fachner mentioned. “We have now plenty of superb issues occurring on that aspect. We be sure that to redeploy all of the gear we now have attempting to maintain our capital there so we are able to use that capital to realize effectivity on the J&J aspect.
The inventory market reacted favorably after the publication of the primary quarter outcomes. J&J Snack Meals’ inventory worth closed at $164.91 per share on the Nasdaq on Jan. 26, from an in depth of $156.89 per share on Jan. 25.
J&J Snack Meals suffered decrease foodservice gross sales in smooth pretzels, down 35% to $32.7 million; frozen juices and ice cream, down 11% to $6.3 million; churros, down 30% to $11.5 million; and funnel truffles, down 49% to $3.1 million. Handheld laptop gross sales elevated 145% as a result of a wholesale membership buyer had success with a brand new product. Restaurant working revenue fell from $18 million to $6.2 million.
Retail grocery store gross sales of $39.1 million had been up 33% from $29.4 million within the first quarter a yr earlier. Gross sales will increase had been reported for Superpretzel, up 41% to $13.9 million; frozen juices and ice cream, up 52% to $15.3 million; and cookies, up 10% to $7.7 million. The retail grocery store section’s working revenue elevated by 113%, from $2.2 million to $4.7 million.
Frozen beverage gross sales of $41.5 million had been down 41% from $70 million within the first quarter a yr earlier. Gallon gross sales fell 56% as COVID-19 issues negatively impacted visitors at theaters, leisure venues and main retailers. The frozen drinks section recorded an working lack of $10.3 million, in comparison with an working revenue of $1.5 million within the first quarter of the earlier yr.
Firm-wide, J&J Snack Meals had a money and securities steadiness of $285 million as of December 26, 2020, a rise of $7 million from year-end. mentioned Gerald B. Shreiber, Managing Director.
“We proceed to generate constructive money circulation, and our steadiness sheet and liquidity have remained sturdy on this difficult surroundings,” he mentioned. “We proceed to hunt acquisition alternatives and stay targeted on long-term progress alternatives for our enterprise.”