J&J Snack Foods, a manufacturer of branded and private label snack and beverage items, saw its revenue and sales increase in the first quarter of 2023.
For the period ended Dec. 24, 2022, net sales increased 10.3% to $351.3 million in Q1 of fiscal 2023, compared to Q1 of fiscal 2022. Gross profit as a percentage of sales was 25.9% in Q1, a slight increase year-over-year.
The company said that organic sales growth was driven by growth across all three business segments (food service, retail and frozen beverage) led by core products including pretzels, churros, frozen novelties and frozen beverages. Food service sales exceeded Q1 2022 by 12.5%, retail segment sales exceeded Q1 2022 by 0.9% and the frozen beverage segment sales exceeded Q1 2022 sales by 9.2%.
“We are pleased to report the seventh consecutive quarter of double-digit top-line growth and remain confident in our plans to continue growing sales,” said Dan Fachner, J&J Snack Foods president and CEO. “We are investing in our brands, accelerating cross selling opportunities with our customers and across our channels, expanding our production capacity and building a strong pipeline of product innovation.”
Total operating expenses of $81.5 million represented 23.2% of sales for the quarter, reflecting ongoing inflationary costs across distribution. Distribution costs represented 12.0% of sales in the quarter, versus 10.5% in the prior year period, but improved sequentially compared to Q4 2022.
J&J Snack Foods’ branded product portfolio includes well-known brands such as Superpretzel pretzels, Dippin’ Dots ice cream, Luigi’s Real Italian Ice, Minute Maid frozen ices and more.
“In closing, our momentum remains strong as our core brands and new products continue to resonate with consumers, and we are confident that our strategy is working and that we will see the benefit of our various initiatives throughout the balance of fiscal 2023,” added Fachner.