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J & J Snack Foods Corp. (JJSF-1.61%) has submitted its 10-Q filing for the quarterly period ended December 28, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $362.6 million from $348.3 million in the same quarter the previous year. This increase was driven by growth in the Retail Supermarket and Frozen Beverages segments.
Cost of goods sold increased to $268.7 million from $253.7 million, resulting in a gross profit decrease to $93.9 million from $94.6 million. The gross profit margin decreased due to rising raw material costs and other inflationary pressures.
Operating expenses rose to $87.7 million from $84.9 million, with marketing and administrative expenses remaining flat as a percentage of sales.
Operating income decreased to $6.2 million from $9.7 million, primarily due to the aforementioned gross profit decline.
Investment income increased to $1.0 million due to higher average cash balances and interest rates, while interest expense decreased to $0.2 million.
Net earnings for the quarter were $5.1 million, down from $7.3 million in the previous year, with an effective tax rate of 27%.
The Food Service segment reported a sales increase to $238.9 million, driven by growth in soft pretzels and frozen novelties, despite a decline in churro sales.
Retail Supermarket sales increased slightly to $44.7 million, with a decrease in soft pretzel sales offset by growth in frozen novelties.
Frozen Beverages sales rose to $79.0 million, with beverage sales increasing by 6.4% and machine revenue up by 13.0%.
Cash provided by operating activities was $35.2 million, while cash used in investing and financing activities was $18.9 million and $13.8 million, respectively.
As of December 28, 2024, J & J Snack Foods had $73.6 million in cash and cash equivalents, with no outstanding balance under its amended credit agreement.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the J & J Snack Foods Corp. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.