J&J "disappointed" by top line trends

J&J "disappointed" by top line trends

J&J Snack Foods has said it is "disappointed" with its top-line performance, despite reporting higher earnings for the first nine months of its financial year.

The US snack group said sales in the nine months to 25 June increased 2% to US$730.5m. During the third quarter, however, sales dropped by about 0.25% to $278m. 

Nine-month operating income increased 6% to $82.1m from $77.2m  last year, the Superpretzel maker revealed. Net earnings increased 10% to $55.4m. 

President and CEO Gerald Shreiber said: "Although we are pleased that our earnings for the third quarter and nine months are higher than last year, we are disappointed with our lack of sales growth."

At the end of the previous financial year, J&J said it hoped to boost sales in the coming 12 months through a focus on innovation. The company has rolled out various new products this fiscal year, including Pillsbury frozen dessert – manufactured under licence from General Mills – and Grab and Go Oreo Churros - made under licence from Mondelez International.