J&j Snack Foods To Close Three Plants Under Project Apollo Transformation

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J&J Snack Foods is rolling retired a translator programme centred connected costs savings, mill consolidation and driving an uplift successful profits.

Dan Fachner, nan CEO of nan US snacks and stiff beverages business, said Project Apollo is expected to present $20m successful annualised operating income erstwhile afloat successful spot successful its fiscal 2026 year, which started connected 28 September

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The first shape chiefly revolves astir nan closure of 3 accumulation plants located successful Holly Ridge, North Carolina; Atlanta, Georgia; and Colton, California, Fachner added arsenic he discussed nan company’s 2024/2025 financial-year results pinch analysts this week.

Those numbers showed declines crossed astir metrics successful nan 4th fourth ended 27 September and a akin capacity crossed nan afloat year, which included a 28% alteration successful operating income to $84.3m.

“Production from these accommodation will either beryllium consolidated into different accommodation aliases discontinued arsenic portion of an ongoing portfolio optimisation,” nan CEO of nan Super Pretzel and Hola Churros snacks marque proprietor said.

“The closures bespeak nan adjacent logical measurement successful nan improvement of our manufacturing footprint and are enabled by nan investments we person made successful our plants to modernise and grow capacity for halfway products and to build retired our location distribution centres.”

Nasdaq-listed J&J Snack Foods, which supplies nan unit and foodservice channels, including movie theatres, expects nan mill changes will beryllium mostly completed successful 2026 and present $15m successful annualised costs savings.

Another $3m will travel from “various initiatives” to beryllium undertaken successful distribution.

A 2nd shape of Project Apollo intends to realise efficiencies successful nan remaining works network, modernisation projects and tech systems to “streamline further firm processes and sharpen nan value of our information analytics”, Fachner said.

Shawn Munsell, nan CFO of nan Dippin’ Dots crystal pick and ICEE stiff treats brands owner, clarified that J&J Snack Foods saw fourth-quarter operating expenses summation 24% to $118.8m, aliases 29% of group sales, successful narration to nan tract closures.

That included $24.8m of non-recurring charges, on pinch non-cash plus constitute downs and constitute offs of astir $21m. A further $3-5m is expected successful nan caller financial year.

In nan 4th quarter, nan company’s nett income fell 4% to $410.2m. More than half of nan diminution reflected a “strong” measurement capacity successful stiff beverages a twelvemonth earlier successful narration to nan sequel of nan Inside Out movie.

However, pretzels income grew successful some unit and foodservice up of caller invention centred connected added macromolecule planned for 2026.

Elsewhere, adjusted EBITDA decreased 4% to $57.4m and operating income dropped 71% to $11.5m. Net income and diluted EPS were some down 62% astatine $11.4m and $0.58, respectively.

“Looking ahead, we person respective awesome commercialized programmes launching successful fiscal 2026 and our invention pipeline remains robust, pinch a important accent connected better-for-you attributes,” Fachner said successful nan results commentary.

“With our beardown equilibrium sheet, including $106m successful rate and nary debt, we are exceptionally good positioned to thrust sustainable maturation and create semipermanent worth for our shareholders, while navigating nan evolving user environment.”

Annual nett income dipped 1% to $1.58bn. Operating income decreased 28% to $84.3m. Net net fell 24% to $65.6m.