J&J Snack Foods net falls 13% in quarter

by Eric Schroeder
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PENNSAUKEN, N.J. — Net income of J&J Snack Foods Corp. in the third quarter ended June 28 totaled $10,820,000, equal to 58c per share on the common stock, down 13% from $12,497,000, or 67c per share, in the same year-ago period.

Sales in the quarter were $176,839,000, up 9% from $162,510,000 a year ago.

"Despite overall sales growth of over 9% and significantly improved operating income from our retail supermarket segment, our overall earnings declined," said Gerald B. Shreiber, president and chief executive officer. "Although pricing initiatives helped to counter soaring input costs, particularly wheat- and dairy-based ingredients, our profits for the quarter were negatively impacted by the higher costs."

Sales to food service customers increased $11,435,000, or 12%, in the third quarter, to $106,854,000. During the quarter, soft pretzel sales to the food service segment increased 1% to $25,129,000.

Bakery product sales, excluding Hom/Ade and Daddy Ray’s, increased $8,605,000, or 25%, driven by higher sales to private label customers.

Frozen beverage and related product sales increased 7% to $52,477,000, with beverage sales accounting for $35,420,000 of that total.

For the nine months ended June 28 net income totaled $16,715,000, or 89c per share, down from $21,635,000, or $1.16 per share in the first nine months of fiscal 2007. Net sales totaled $451,966,000, up 11% from $406,692,000 in the same period a year ago.

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