J & J Snack Foods Reports 3.2% Sales Drop, 9.5% Adjusted EBITDA Gain
JJSF•J & J Snack Foods reported Q2 net sales of $344.8 million, down 3.2% year-over-year, and net earnings of $1.7 million, a 65.2% decline. Adjusted EBITDA rose 9.5% to $28.7 million while adjusted EPS increased 14.3% to $0.40, and $22 million of shares were repurchased.
1. Q2 Financial Highlights
J & J Snack Foods recorded Q2 net sales of $344.8 million, down 3.2% year-over-year. Gross profit improved to $99.3 million, a 3.8% increase, while operating income fell to $1.8 million and net earnings declined to $1.7 million.
2. Adjusted Metrics and Transformation
Adjusted operating income rose 8.7% to $9.6 million and adjusted EBITDA increased 9.5% to $28.7 million, driving an adjusted EPS of $0.40, up 14.3%. The Project Apollo transformation initiatives and mix improvements were cited as key drivers of margin expansion.
3. Segment Performance and Share Repurchases
Food Service segment net sales declined 5.0% to $214.7 million, Retail Supermarket sales fell 4.1% to $51.6 million, and Frozen Beverage sales rose 3.1% to $78.5 million. The company repurchased 259,889 shares for $22 million, with $28 million still available under its $50 million buyback program.
