NASDAQ$JJSF

J&J Snack Foods Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

J&J Snack Foods' second quarter net sales increased due to growth in core products, overcoming ERP implementation challenges and inflationary pressures.

J&J Snack Foods reported a 10% increase in net sales to $281.5 million for the second quarter of fiscal 2022. Sales were driven by growth in core products including pretzels, churros and frozen beverages. The company faced challenges related to the implementation of a new ERP system and significant inflationary pressures, which impacted operating income.

  • Net sales increased 10% to $281.5 million compared to Q2 of fiscal 2021.
  • Frozen Beverage segment sales increased 50% year-over-year.
  • Gross profit as a percentage of sales was 23.2%, compared to 23.8% in Q2 2021, reflecting cost headwinds.
  • Operating income was $4.1 million, compared to $7.2 million in the prior year period, impacted by ERP conversion and inflation.

Headline financials

Total Revenue

$282M

Previous: $256M+9.9%
EPS (adj)

$0.17

Previous: $0.32-46.9%
Capital Expenditures

-$19.2M

Previous: -$18.8M-2.0%
Free Cash Flow

-$15.9M

Previous: -$12.8M-24.8%
Net Income

$3.27M

Previous: $6.06M-46.0%
Operating Income

$4.09M

Previous: $7.23M-43.5%
Gross Profit

$65.3M

Previous: $60.9M+7.3%
Cash & Equivalents

$221M

Previous: $238M-7.3%
Total Assets

$1.12B

Previous: $1.06B+5.5%
Stock-Based Comp

$1.27M

Previous: $1.03M+23.5%

Revenue & EPS history

J&J Snack Foods · Revenue · Quarterly

$282M

Q2 2022+9.9%vs Q2 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

J&J Snack Foods · $223M total across 2 segments · Q2 2022

  • Food Service
    $183M+8.1%
  • Frozen Beverages
    $39.6M-7.7%

Forward guidance

The company expects the operating and financial benefits of recent initiatives to become more visible in the second half of fiscal 2022, with a strong overall industry environment and consumer spending despite rising prices.

Tailwinds

  • Consumer spending remains healthy.
  • Strong demand for products as consumers return to amusement parks, restaurants, retailers, and outdoor venues.
  • Frozen Beverages segment sales increased 50% year-over-year.
  • Aggressive measures to offset cost challenges, including strategic cost reduction initiatives.
  • Recent price increases effective in early April will help offset the impact of cost increases.

Headwinds

  • Unexpected challenges related to the early-February implementation of a new enterprise resource planning system.
  • ERP implementation had a negative, one-time impact on fiscal second quarter sales of approximately $20 million and on fiscal second quarter operating income of approximately $4.5 million.
  • Sustained significant inflationary pressures continue driving up prices across the entire supply and production chain, including raw materials, packaging, and distribution.
  • Gross profit as a percentage of sales was 23.2%, compared to 23.8% in Q2 2021, reflecting cost headwinds.
  • Distribution costs were 10.1% of sales in the quarter, versus 9.9% in the prior year period.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.2%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+1.0%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+16.1%

Q2 2024

Best reaction

-15.4%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.2%-16.9%-10.9%
Q1 2026-15.4%-13.3%-10.1%
Q4 2025+1.1%+9.3%+13.9%
Q2 2025-11.8%-11.8%-13.8%
Q1 2025-6.5%-7.8%+4.0%
Q4 2024-4.8%-5.5%-4.0%
Q3 2024+1.7%+1.5%+2.4%
Q2 2024+16.1%+18.2%+18.0%
Q1 2024-9.6%-7.5%-10.1%
Q4 2023+2.9%+3.7%+4.1%
Q3 2023+7.8%+9.3%+3.2%
Q2 2023+3.2%+6.3%+0.5%
Q1 2023-4.2%-5.6%-6.1%
Q4 2022+7.8%+11.2%+11.0%
Q3 2022+0.0%+3.5%+7.9%
Q2 2022-11.4%-17.4%-15.9%
Q1 2022-1.0%-0.3%+8.8%
Q4 2021-1.8%-6.7%-2.3%
Q3 2021-0.0%-1.4%-2.9%
Q2 2021-2.5%-1.1%+4.1%
Q1 2021+7.7%-0.3%+2.1%
Q4 2020-1.5%+14.8%+3.2%
Q3 2020-1.9%-4.2%+3.1%
Q2 2020+7.3%+4.8%+17.0%
Q1 2020-11.5%-11.0%-7.9%
Q4 2019-4.9%-4.5%-0.8%
Q3 2019+13.0%+11.1%+15.4%
Q2 2019+0.8%+3.5%+2.7%
Q1 2019+8.5%+7.1%+5.7%
Q4 2018-1.3%-2.6%-2.2%
Q3 2018-5.5%-7.8%-6.4%
Q2 2018-5.0%-4.6%+3.3%
Q1 2018-6.5%-7.9%-9.7%
Q4 2017+4.2%+8.5%+14.6%
Q3 2017-5.3%-4.6%-7.3%
Q2 2017+1.3%+0.1%-1.3%
Q1 2017+0.6%+1.4%+2.5%
Q4 2016-3.4%-1.7%+2.0%
Q3 2016+0.4%+0.4%+0.2%
Q2 2016-0.1%
Q1 2016-1.2%
Q4 2015-7.3%
Q3 2015+5.4%
Q2 2015+2.9%
Q1 2015-14.0%
Q4 2014+0.2%
Q3 2014+2.5%
Q2 2014-2.1%
Q1 2014+8.4%
Q4 2013-2.8%
Q3 2013-1.4%
Q2 2013+2.4%
Q1 2013+3.5%
Q4 2012+2.1%
Q3 2012-1.1%
Q2 2012+10.3%
Q1 2011-4.9%
Q1 2012-4.9%
Q4 2009+2.7%
Q2 2011+2.7%
Q4 2011+2.7%
Q3 2011+3.8%
Q3 2010+3.8%
Q4 2010+3.8%
Q2 2010+1.6%

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