By Connor Hart

J&J Snack Foods logged lower revenue and profit in its fiscal first quarter, citing near-term challenges including higher input costs and foreign-exchange headwinds.

The maker of Super Pretzels soft pretzels, Dippin' Dots ice cream and Icee beverages on Monday reported a profit of $5.1 million, or 26 cents a share, for its three months ended Dec. 28, compared with $7.3 million, or 37 cents a share, in the same quarter last year.

Adjusted per-share earnings came in at 33 cents, missing the 59 cents that analysts were expecting, according to FactSet.

Revenue increased 4.1% to $362.6 million, coming in ahead of the $360.9 million that analysts were looking for.

The company's food service unit posted sales of $238.9 million, up 4.5% from last year. Sales across its retail supermarket segment rose 2.2% to $44.7 million. Its frozen beverage unit notched sales of $79 million, up 4% from a year earlier.

Chief Executive Dan Fachner said the company was hurt by near-term challenges, such as a less favorable sales mix and higher input costs that weren't fully covered with price increases.

"Despite these near-term challenges, we are confident in our ability to address short-term margin pressures and improve profitability in the coming quarters through a combination of incremental pricing actions, which have taken effect in the second quarter, and by further driving efficiencies across our supply chain," he said.

Looking ahead, the Mount Laurel, N.J., company said it sees several market catalysts in 2025 including a stronger slate of upcoming film releases, expected to provide a boost to movie theater sales.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

February 03, 2025 16:49 ET (21:49 GMT)

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