J&J Snack Foods net falls 50% in Q1

by Eric Schroeder
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PENNSAUKEN, N.J. — Net income of J&J Snack Foods Corp. in the first quarter ended Dec. 29 totaled $1,897,000, equal to 10c per share on the common stock, down 50% from $3,805,000, or 21c per share, in the same year-ago period.

Sales in the quarter were $130,898,000, up 15% from $114,142,000 a year ago. Approximately $13,013,000 of the sales increase resulted from the acquisitions of Hom/Ade Foods and Radar in January 2007 and Fruit-A-Freeze and Whole Fruit in April 2007. Excluding these sales, sales increased about 3%.

"The unprecedented escalation in commodity costs, including both wheat and dairy, impacted this quarter," said Gerald B. Shreiber, president and chief executive officer. "Given the current environment and expected lack of substantial relief, this will continue to pressure earnings in the future. We are committed to managing our business for the long term and maintaining our market share and presence. We are gratified to have grown our sales by 15% during this difficult environment."

Sales to food service customers increased $13,929,000, or 18%, in the first quarter, to $89,409,000. During the quarter, soft pretzel sales to the food service segment decreased $137,000 to $23,694,000.

Bakery product sales, excluding Hom/Ade and Daddy Ray’s, increased $1,130,000, or 3%, driven by higher sales to private label customers.

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