American snack manufacturer J & J Snack Food Corp has seen its annual income increase by 19%, due in no small part to the performance of pretzel sales.
The latest figures from the company show an annual increase in income overall, with net income in the year ended Sept. 28 at $64,381,000, equal to $3.43 per share on the common stock, up 19% from $54,118,000, or $2.87 per share, in fiscal 2012. Net sales increased 4% to $867,683,000 from $830,796,000.
Pretzels have been the the major success story for J & J Snack Food Corp over the past year, with the increased demand leading to new manufacturing lines being added. Sales to food service customers increased 8% during fiscal 2013 to $560,759,000, with soft pretzel sales to the food service industry increasing 23% to $145,026,000.
Churros have been the second area of growth for the company. Following the acquisition of California Churros in June 2010, the company has built up the churros business and sales to food service customers in 2013 increased 22% to $56,099,000.
Gerald B. Shreiber, president and chief executive, stated: “We continue to push new avenues, new opportunities with churros. But I cannot project that we are going to be reaching those strong double-digit growth with churros for next year. Although we are looking at some opportunities, both around the country and internationally, so we expect to have continued growth in churros. But we think that the food service pretzels and the new varieties will outpace that, percentage-wise.”
Source: Food Business News