JJ Snack Foods delivered a solid full-year 2024 performance, highlighted by continued top-line resilience and margin expansion despite a softer consumer environment in several core channels. For the full year, net sales rose 1% on a reported basis and 2.8% on a normalized basis, while gross margin expanded 80 basis points to 30.9%. Adjusted EBITDA posted a double-digit year-over-year gain, underscoring a disciplined focus on cost controls and efficiency improvements. In Q4 2024, reported revenue declined 3.9% (but normalized growth was +3.9%), as softer traffic and a one-week selling-day delta weighed on higher-margin mix items such as soft pretzels, churros, frozen beverages, and Dippin’ Dots. Nevertheless, management underscored the durability of its diversified portfolio, ongoing Brand cross-selling, and ongoing capital investments that are expanding profitable growth opportunities across Foodservice, Retail, and Frozen Beverages.
Key takeaways for investors: (1) top-line resilience driven by core brands, incremental placements, and new customer wins; (2) margin discipline delivering 80 bps gross margin expansion for the year with continued focus on improved absorption and procurement; (3) material channel investments (e.g., Dippin' Dots expansion into retail and theater deployments) that should unlock higher long-term ROIC; (4) a robust balance sheet with meaningful liquidity and substantial debt headroom to fund growth and shareholder returns; and (5) a cautious but constructive near-term outlook for 2025, anchored by expected channel normalization, favorable film slates for ICEE/dessert beverages, and continued supply-chain improvements.
Management remains confident in achieving mid-single-digit revenue growth in 2025, supported by cross-brand opportunities, new product launches, and channel diversification, with gross margins expected to be sustained above the 31% mark and continued leverage of fixed costs as volume recovers.