J & J Snack Foods Corp (JJSF) 2024 Q2 法說會逐字稿

Welcome to the J&J Snack Foods fiscal 2024 second-quarter conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

歡迎參加強生休閒食品 2024 財年第二季電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Norberto Aja, Investor Relations. Please go ahead.

現在我想將會議交給今天的第一位發言人，投資者關係部門的諾貝托·阿賈 (Norberto Aja)。請繼續。

Thank you, operator, and good morning, everyone. Thank you for joining the J&J Snack Foods fiscal 2024 second-quarter conference call. We will start in just a minute with management's comments and your questions. But before doing so, let me take a minute to read the Safe Harbor language.

謝謝接線員，大家早安。感謝您參加強生休閒食品 2024 財年第二季電話會議。我們將在一分鐘內開始提出管理層的評論和您的問題。但在此之前，讓我花一點時間閱讀安全港語言。

This call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. As such, all statements made on this call that do not relate to matters of historical facts should be considered forward-looking statements including statements regarding management's plans, strategies, goals, expectations and objectives, and our anticipated financial performance. These statements are neither promises or guarantees and involve known and unknown risks, uncertainties, and other important factors that may cause results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.

本次電話會議包含1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。層計畫的陳述、策略、目標、期望和目標，以及我們預期的財務表現。這些陳述既不是承諾也不是保證，涉及已知和未知的風險、不確定性和其他重要因素，這些因素可能導致結果、業績或成就與前瞻性陳述中明示或暗示的任何未來結果、業績或成就存在重大差異。

Risk factors and other items discussed in our annual report on Form 10-K for the year ended September 30, 2023, and other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made on this call today. As such, forward-looking statements represent management's estimates as to the date of this call, May 7, 2024. And while we may elect to update forward-looking statements at some point in the future, we disclaim any obligation to do so even if subsequent events cause expectations to change.

我們在截至 2023 年 9 月 30 日的 10-K 表格年度報告以及向美國證券交易委員會提交的其他文件中討論的風險因素和其他項目可能會導致實際結果與前瞻性陳述所表明的結果存在重大差異在今天的電話會議上。因此，前瞻性陳述代表了管理階層對本次電話會議日期（2024 年5 月7 日）的估計。即使隨後發生的事件會導致預期發生變化。

In addition, we may also reference certain non-GAAP measures on the call today including adjusted EBITDA, adjusted operating income, or adjusted earnings per share, all of which are reconciled to the nearest GAAP measure in our earnings press release which can be found in the Investor Relations section of our website.

此外，我們也可能在今天的電話會議上引用某些非GAAP 指標，包括調整後的EBITDA、調整後的營業收入或調整後的每股盈餘，所有這些指標均與我們的收益新聞稿中最接近的GAAP 指標進行了調整，這些指標可以在我們網站的投資者關係部分。

Joining me on the call today is Dan Fachner, our Chief Executive Officer, along with Ken Plunk, our Chief Financial Officer. Following management's prepared remarks, we will go ahead and open the call for question and answers.

今天與我一起參加電話會議的是我們的執行長 Dan Fachner 和我們的財務長 Ken Plunk。在管理階層準備好的演講之後，我們將繼續進行問答徵集。

With that, I would now like to turn the call over to Mr. Dan Fachner, J&J Snack Foods' Chief Executive Officer. Dan, please go ahead.

現在，我想將電話轉給 J&J Snack Foods 執行長 Dan Fachner 先生。丹，請繼續。

Thank you, Norberto, and good morning, everyone. We appreciate you joining us this morning to discuss J&J Snack Foods' fiscal 2024 second-quarter results. We delivered record second-quarter net sales of $360 million, reflecting growth across our foodservice, retail, and frozen beverage segments with year-over-year increases across most product categories. Our strong performance was driven by an amazing team of employees who are aligned in executing our strategy and committed to serving our customers and valued stakeholders.

謝謝諾伯托，大家早安。感謝您今天早上加入我們討論強生休閒食品 2024 財年第二季業績。我們第二季的淨銷售額達到創紀錄的 3.6 億美元，反映出我們的餐飲服務、零售和冷凍飲料領域的成長，大多數產品類別都將年成長。我們的強勁業績是由一支出色的員工團隊推動的，他們一致執行我們的策略，並致力於為我們的客戶和重要的利害關係人提供服務。

We have a wonderful business with tremendous growth opportunities ahead of us, and we continue to see that in our financial results. Our strong topline performance combined with gross margins exceeding 30% in the quarter, a 330 basis points improvement over last year, is a result of executing our strategy including focused initiatives to improve profitability. This resulted in adjusted operating income and adjusted EBITDA growth of 81% and 43.1% respectively, and a more than 90% increase in net earnings. In short, strong performance across the board. Our strategies to leverage innovation and cross-selling opportunities to expand placement of our core products and brands are delivering results.

我們擁有出色的業務，面前有巨大的成長機會，我們將繼續在我們的財務表現中看到這一點。我們強勁的營收業績加上本季毛利率超過 30%，比去年提高了 330 個基點，這是我們執行策略（包括提高獲利能力的重點措施）的結果。這導致調整後營業收入和調整後 EBITDA 分別成長 81% 和 43.1%，淨利潤成長超過 90%。簡而言之，全面表現強勁。我們利用創新和交叉銷售機會擴大核心產品和品牌佈局的策略正在取得成果。

Let's take a closer look at our sales performance in the quarter. In our foodservice segment, churros sales continued their strong growth momentum, increasing 23.7% to nearly $31 million led by new business growth of one of the three largest QSR customers. Recent investments to add two new churro production lines have us well positioned to capture incremental opportunities in the churro category, and we expect the continued growth throughout the year, including international opportunities as well.

讓我們仔細看看本季的銷售業績。在我們的餐飲服務領域，油條銷售額持續保持強勁的成長勢頭，在三大 QSR 客戶之一的新業務成長的帶動下，成長了 23.7%，達到近 3,100 萬美元。最近投資增加了兩條新的油條生產線，使我們能夠很好地抓住油條類別的增量機會，我們預計全年將持續成長，包括國際機會。

In addition, bakery sales increased 7.7%, driven by unit volume growth in cookies, new products, and expanded customer placements. Frozen novelty sales grew a 4.2%, led by the continued growth of Dippin' Dots. Dippin' Dots sales increased 5% in the quarter led by growth across most channels. Growth across the segment was partially offset by softness in soft pretzels and handhelds.

此外，受餅乾單位銷售成長、新產品和擴大客戶投放的推動，烘焙銷售額成長了 7.7%。在 Dippin' Dots 持續成長的帶動下，冷凍新奇玩具銷售額成長了 4.2%。在大多數通路成長的帶動下，Dippin' Dots 本季銷售額成長了 5%。該細分市場的成長部分被軟椒鹽捲餅和手持設備的疲軟所抵消。

Moving on to our retail segment. Handhelds grew 75.5%, driven by expanded placement with a major mass merchant. Frozen novelties sales increased 14%, led by growth of Dogsters and Icee novelties, while biscuits sales increased 6% and soft pretzel sales increased 2.7%, led by our continued expansion of Superpretzel products, largely reflecting strong demand for our new Superpretzel Bavarian sticks.

繼續我們的零售業務。受大型大眾商家擴大版面的推動，手持裝置成長了 75.5%。在Dogsters 和Icee 新奇產品成長的帶動下，冷凍新奇產品銷量增長了14%，在Superpretzel 產品的持續擴張帶動下，餅乾銷量增長了6%，軟椒鹽捲餅銷量增長了2.7%，這在很大程度上反映了對我們新的Superpretzel 巴伐利亞棒的強勁需求。

Frozen beverages segment also delivered healthy growth, led by a 6.9% increase in Frozen Beverage sales, reflecting consistent consumer trends across most customer channels. Repair and maintenance revenues also increased by 2.9%, reflecting strong maintenance call volumes. Partially offsetting this growth were relatively flat machine sales down 0.4% as we lap a large rollout from last year.

冷凍飲料部門也實現了健康成長，其中冷凍飲料銷售額成長了 6.9%，反映出大多數客戶通路一致的消費趨勢。維修和保養收入也成長了 2.9%，反映出強勁的維修需求量。由於我們比去年進行了大規模部署，機器銷量相對平穩，下降了 0.4%，部分抵消了這一增長。

I'd like to take a couple of minutes to highlight a few areas that support our relentless focus on driving growth, building our brands, and capturing incremental opportunities. Starting with Superpretzel, this iconic brand is outperforming the snack category and continues to provide opportunities for growth through new product extensions or new points of sales. We are quickly expanding this brand across retail led by the launch of Bavarian Sticks, which has become the number two seller in Superpretzel portfolio, reaching an ACV of 25% and growing. I'm also pleased with the incremental distribution we are achieving and our marketing execution led by promotions like the recently concluded March Madness campaign.

我想花幾分鐘時間強調一些支持我們不懈地致力於推動成長、打造我們的品牌和抓住增量機會的領域。從 Superpretzel 開始，這個標誌性品牌的表現優於零食類別，並繼續透過新產品擴展或新銷售點提供成長機會。以 Bavarian Sticks 的推出為首，我們正在迅速將該品牌擴展到零售領域，該產品已成為 Superpretzel 產品組合中的第二大銷售商，ACV 達到 25%，並且還在不斷增長。我還對我們正在實現的增量分銷以及由促銷活動（例如最近結束的瘋狂三月活動）主導的營銷執行感到滿意。

Later in the year, we look forward to various soft pretzel launches in the club channel under the Superpretzel, Brauhaus, and Auntie Anne's brands as well as bringing to market our Superpretzel Roller Grill Dog in foodservice. And as it relates to Icee, we continue to see healthy momentum with new client wins such as Dave & Buster's and an upcoming test with a top 10 national QSR chain. Our sales in Mexico, the amusement channel, mass merchandise retailers, and restaurants increased for the quarter, and we just wrapped up our national flavor and movie promotion with Checkers.

今年晚些時候，我們期待在俱樂部渠道以 Superpretzel、Brauhaus 和 Auntie Anne 品牌推出各種軟椒鹽捲餅，並將我們的 Superpretzel Roller Grill Dog 餐飲服務推向市場。就 Icee 而言，我們繼續看到健康的勢頭，贏得了 Dave & Buster 等新客戶，以及即將對全國排名前 10 的 QSR 連鎖店進行測試。本季我們在墨西哥、娛樂通路、大眾商品零售商和餐廳的銷售額有所成長，而且我們剛結束了與跳棋的民族風味和電影促銷活動。

Let's talk about Dippin' Dots. I'm pleased to confirm that we have secured full location rollouts for AMC Theatres and Cinemark Theatres with targeting a completion by the end of the fiscal year. Once completed, Dippin' Dots will be sold in approximately 880 theater locations, continuing our strong partnership with these leading customers. And we've also reached an agreement to roll out vending machines across Marcus Theatres. And I'm so proud to report, we were just awarded vendor of the year by Marcus Theatres.

我們來談談 Dippin' Dots。我很高興地確認，我們已確保 AMC 影院和喜滿客影院的全場放映，目標是在本財年年底前完成。一旦完成，《Dippin' Dots》將在大約 880 個影院出售，繼續我們與這些領先客戶的牢固合作關係。我們還達成了一項協議，將在馬庫斯劇院推出自動販賣機。我很自豪地向大家報告，我們剛剛被馬庫斯劇院授予年度供應商獎。

This is a testament to our continued efforts in cross selling our portfolio to our largest customers. Finally, we are making great progress on test with a couple of major convenience customers and have a confirmed full rollout with 162 location foodservice customer that we hope to have implemented later in the year.

這證明了我們不斷努力向最大的客戶交叉銷售我們的產品組合。最後，我們在幾個主要便利客戶的測試中取得了巨大進展，並已確認向 162 個地點的餐飲服務客戶全面推出，我們希望在今年稍後實施。

Let's talk about a few other innovation highlights. I'm so proud of our R&D team and the opportunities they are creating through new products, better packaging, and product extensions. Recent accomplishments include the launch of Hola! Churros in the retail, the addition of new Dogsters pumpkin flavor, new Dogsters club channel packaging, Brauhaus Bavarian packaging in foodservice, a new cakeables cookie brand, and the launch of Superpretzels soft pretzel buns in the in-store bakery.

讓我們來談談其他一些創新亮點。我為我們的研發團隊以及他們透過新產品、更好的包裝和產品擴展創造的機會感到非常自豪。最近的成就包括推出 Hola！零售中的油條、增加了新的 Dogsters 南瓜口味、新的 Dogsters 俱樂部通路包裝、餐飲服務中的 Brauhaus Bavarian 包裝、新的蛋糕餅乾品牌，以及在店內麵包店推出 Superpretzels 軟椒鹽捲餅麵包。

We also recently announced the acquisition of the Thinsters brand, which provides us with strong brand and quality product to add to our cookie portfolio. Thinsters are predominantly sold in the club and retail channels, servicing existing customers of ours. We have been producing this product for the previous owner, so this will be a seamless integration and a quality brand that we can build across both retail and foodservice. Our team is relentlessly focused on innovation and creating new selling opportunities.

我們最近也宣布收購 Thinsters 品牌，該品牌為我們提供了強大的品牌和優質產品，以添加到我們的餅乾產品組合中。 Thinsters 主要在俱樂部和零售通路銷售，為我們的現有客戶提供服務。我們一直在為前所有者生產該產品，因此這將是我們可以在零售和餐飲服務領域建立的無縫整合和優質品牌。我們的團隊堅持不懈地專注於創新和創造新的銷售機會。

From an operational perspective, there are many positives to report as we continue to execute against our initiatives to enhance overall operations and better support our growth opportunities. Starting with our supply chain strategy, we now have opened all three distribution centers: Carroll, Texas; Woolridge, New Jersey; and more recently, Glendale, Arizona. These three new RDCs are exceeding expectations and will enable us to continue driving productivity improvements in our supply chain. At this time, 81% of our sales orders are shipped from the new distribution network versus only 26% a year ago, with the average length of haul decreasing by over 40% and the on-time performance improving to 87% versus 74% a year ago.

從營運角度來看，隨著我們繼續執行旨在增強整體營運並更好地支持我們的成長機會的舉措，有許多積極的方面值得報告。從我們的供應鏈策略開始，我們現在已經開設了所有三個配送中心：德州卡羅爾；新澤西州伍爾里奇；最近，亞利桑那州格倫代爾。這三個新的 RDC 超出了預期，將使我們能夠繼續推動供應鏈生產力的提升。目前，我們 81% 的銷售訂單是從新的分銷網絡發貨，而一年前僅為 26%，平均運輸長度減少了 40% 以上，準時率提高到 87%，而一年前為 74%。年前。

Shifting to operations. The addition of six new production lines have significantly expanded our capacity. This has enabled added efficiencies and given us the ability to meet growth opportunities across our core products such as pretzels, churros, and frozen novelties, enabling new customers and channel opportunities. Two new frozen novelty lines have added critical capacity and flexibility during the peak summer season. They're also allowing us to make similar products in different locations, leading to freight savings.

轉向營運。新增六條生產線顯著擴大了我們的產能。這提高了效率，使我們能夠抓住椒鹽捲餅、西班牙油條和冷凍新奇食品等核心產品的成長機會，從而創造新客戶和通路機會。兩條新的冷凍新奇生產線在夏季高峰季節增加了關鍵產能和靈活性。它們還允許我們在不同地點生產類似的產品，從而節省運費。

The new churro line also increased capacity and provided us with the capability to meet the growth we anticipated in churros. Our two new pretzel lines in Texas and New Jersey immediately created capacity to meet market demands that we could not previously serve, while also creating growth opportunities in foodservice for Bavarian pretzel bites, retail division expansion, and in-store bakery innovation. Overall, the expanded capacity has created production efficiencies and higher output metrics through better automation, which improves product margins, decreases over time, and provides the flexibility to meet unforecasted additional sales during peak summer business.

新的油條生產線也增加了產能，使我們有能力滿足我們對油條的預期成長。我們在德克薩斯州和新澤西州的兩條新椒鹽捲餅生產線立即創造了滿足我們以前無法滿足的市場需求的能力，同時也為巴伐利亞椒鹽捲餅的餐飲服務、零售部門擴張和店內烘焙創新創造了成長機會。總體而言，擴大的產能透過更好的自動化提高了生產效率和更高的產出指標，從而提高了產品利潤（隨著時間的推移而減少），並提供了靈活性，以滿足夏季業務高峰期間不可預見的額外銷售。

In closing, I am pleased with our ability to post record sales while managing through an ongoing challenging consumer environment. And as I mentioned at the onset, I'm so proud of how the J&J team continues to execute our five core strategies, grow and protect our brands, dominate core categories, cross sell the portfolio, invest in our future, and embrace our culture.

最後，我對我們在應對持續充滿挑戰的消費者環境的同時創下銷售記錄的能力感到滿意。正如我在開頭提到的，我對強生團隊如何繼續執行我們的五項核心策略、發展和保護我們的品牌、主導核心類別、交叉銷售產品組合、投資我們的未來以及擁抱我們的文化感到非常自豪。

With that, I would now like to pass the call over to Ken to review our financial performance in more detail. Ken?

現在，我想將電話轉接給 Ken，以更詳細地審查我們的財務表現。肯？

Thank you, Dan, and good morning, everyone. I am pleased with our ability to deliver strong results for the quarter, including the highest fiscal second-quarter net sales, topping our previous record achieved last year. This, combined with gross margins over 30%, contributed to significant profit growth and profits growing faster than sales. Net sales for the quarter totaled $359.7 million an increase of 6.5% versus the prior year.

謝謝丹，大家早安。我對我們在本季度取得強勁業績的能力感到滿意，其中包括第二財季最高的淨銷售額，超過了我們去年創下的紀錄。再加上超過30%的毛利率，促成利潤顯著成長，且利潤成長速度快於銷售額成長。該季度淨銷售額總計 3.597 億美元，比上年增長 6.5%。

As Dan mentioned, topline performance was driven primarily by higher volume and new business performance in the quarter. Foodservice, our largest segment, saw sales increased 5.4% to $230 million as churros continue their strong growth momentum increasing 23.7% to over $30.8 million.

正如 Dan 所提到的，營收業績主要是由本季銷售增加和新業務業績所推動的。我們最大的細分市場餐飲服務銷售額成長 5.4%，達到 2.3 億美元，而西班牙油條持續保持強勁的成長勢頭，銷售額成長 23.7%，超過 3,080 萬美元。

Bakery and frozen novelties increased 7.7% and 4.2%, respectively, driven by unit volume growth in cookies and a 5% increase in Dippin' Dots sales. Growth across the segment was offset by a decrease in soft pretzel and handheld sales of 2.1% and 4%, respectively, driven by soft consumer trends. It is important to note that volume sales for our major handheld customers did increase for the quarter.

受餅乾單位銷售成長和 Dippin' Dots 銷售額成長 5% 的推動，烘焙食品和冷凍新奇食品分別成長 7.7% 和 4.2%。由於消費趨勢疲軟，軟椒鹽捲餅和手持設備銷量分別下降 2.1% 和 4%，抵消了整個細分市場的成長。值得注意的是，本季我們主要手持設備客戶的銷售量確實有所成長。

In addition, sales of new products and added placement with new customers totaled approximately $13.7 million, driven primarily by the addition of churros to the menu of a major QSR customer. This led to a second-quarter operating income of $7.9 million an increase of 54.5% versus the prior-year period, reflecting the topline growth and improved gross margins.

此外，新產品的銷售額和新客戶的增加銷售總額約為 1,370 萬美元，這主要是由於在主要 QSR 客戶的菜單中添加了油條。這使得第二季營業收入達到 790 萬美元，比去年同期成長 54.5%，反映了營收成長和毛利率的提高。

Moving to our retail segment. Q2 '24 retail sales totaled $52.9 million or an increase of 14.1%, driven by handheld sales growth of 75.5%, as we expanded product placement with a major mass merchant. In addition, frozen novelties sales increased 14% led by the growth of Dogsters and Icee novelties as well as higher shipments as customers build inventory for the peach spring summer seasons.

轉向我們的零售領域。 24 年第 2 季零售額總計 5,290 萬美元，成長 14.1%，這得益於我們在一家主要大眾商家擴大了產品植入，手持設備銷售額增長了 75.5%。此外，由於 Dogsters 和 Icee 新奇商品的增長以及客戶為桃子春夏季節建立庫存而增加的出貨量，冷凍新奇商品的銷售額增長了 14%。

Biscuit sales increased 6% in the quarter and saw pretzel sales increased 2.7%, led by our continued expansion of Superpretzel product in retail. We also benefited from new product innovation in this segment of approximately $2 million in the quarter. This was largely the result of the introduction of Superpretzel Bavarian sticks into the retail segment.

本季餅乾銷售額成長 6%，椒鹽捲餅銷售額成長 2.7%，這主要得益於我們在零售領域持續擴張 Superpretzel 產品。本季我們也受惠於該領域約 200 萬美元的新產品創新。這主要是由於超級椒鹽巴伐利亞棒引入零售領域的結果。

This led to an operating income of $5.1 million or an increase of $4.6 million versus the prior-year period reflecting the improved sales, product mix, and gross margin. As it relates to our third segment, frozen beverages, sales were $76.9 million and beat Q2 2023 sales by 5%, led by beverage sales growth of 6.9%, reflecting consistent consumer trends across most customer channels.

這使得營業收入達到 510 萬美元，比去年同期增加 460 萬美元，反映出銷售額、產品組合和毛利率的改善。就我們的第三個細分市場冷凍飲料而言，銷售額為7,690 萬美元，比2023 年第二季度的銷售額增長5%，其中飲料銷售額增長6.9%，反映出大多數客戶渠道一致的消費趨勢。

Repair and maintenance revenues also increased 2.9% as we saw strong maintenance call volumes. Machine sales were relatively flat down 0.4% as we lapped a significant customer rollout from last year. This led to operating income of $4.9 million, compared to a Q1 '23 operating income of $4.6 million driven by sales growth and consistent gross margin performance.

由於維修電話量強勁，維修和保養收入也成長了 2.9%。由於我們去年推出了大量客戶，因此機器銷售額相對平穩地下降了 0.4%。這使得營業收入達到 490 萬美元，而在銷售成長和穩定的毛利率表現的推動下，23 年第一季的營業收入為 460 萬美元。

Our investments and initiatives over the last two years to enhance profit margins and drive efficiency across our business are proving to be successful. For the quarter, gross profit totaled $108.2 million, a 19.8% increase compared to Q2 '23. This led to a 330-basis-point improvement in gross margin to 30.1%, favorably comparing to 26.8% in Q2 '23. We remain confident in our plans to improve profit margins and expect to achieve gross margins of 30% or better for the full year.

過去兩年，我們為提高利潤率和提高整個業務效率而進行的投資和措施被證明是成功的。本季毛利總計 1.082 億美元，較 2023 年第二季成長 19.8%。這使得毛利率提高了 330 個基點，達到 30.1%，較 2023 年第二季的 26.8% 有所改善。我們對提高利潤率的計劃仍然充滿信心，預計全年毛利率達到 30% 或更高。

As it relates to inflation, the overall impact has stabilized. We are now experiencing deflation in some raw materials like flour, oils, dairy, and eggs. However, this was offset by double-digit inflation in chocolates and mid-single-digit increases in sugars and sweeteners, mixes, and meats. Our procurement team is effectively managing supply and cost, and we are well positioned to respond to any impacts.

由於與通貨膨脹相關，整體影響已經穩定。我們現在正在經歷麵粉、油、乳製品和雞蛋等一些原料的通貨緊縮。然而，這被巧克力兩位數的通貨膨脹以及糖和甜味劑、混合物和肉類的中位數增長所抵消。我們的採購團隊正在有效地管理供應和成本，我們有能力應對任何影響。

Looking at expenses, total operating expenses increased $10.1 million or 12.7%, representing 25.1% of sales for the quarter compared to 23.7% in Q2 of '23. It is important to note that during the quarter, we incurred $2.3 million in one-time expenses, reflecting transition costs primarily related to the recent opening of our third distribution center in Glendale, Arizona.

從費用來看，總營運費用增加了 1,010 萬美元，即 12.7%，佔本季銷售額的 25.1%，而 23 年第二季為 23.7%。值得注意的是，本季我們產生了 230 萬美元的一次性費用，主要反映了與最近在亞利桑那州格倫代爾開設的第三個配送中心相關的過渡成本。

This was a planned cost of our distribution network strategy, and it's expected to drive meaningful cost savings once we complete the initiative. Distribution costs were 12.3% of sales in the quarter compared to 11.3% in the prior-year period, driven by the previously mentioned one-time transition cost.

這是我們分銷網絡策略的計劃成本，一旦我們完成該計劃，預計將顯著節省成本。由於前面提到的一次性過渡成本，分銷成本佔本季銷售額的 12.3%，而去年同期為 11.3%。

Going forward, we expect distribution expenses to further benefit from our initiatives to improve logistics management increase efficiency across our distribution network and supply chain. Marketing and selling expenses were 7.7% sales versus 7.1% in the prior period, driven primarily by incremental licensing fees and promotional marketing support on core brands and new products.

展望未來，我們預期分銷費用將進一步受惠於我們改善物流管理、提高分銷網絡和供應鏈效率的措施。行銷和銷售費用佔銷售額的 7.7%，而上一期為 7.1%，這主要是由於授權費用增加以及對核心品牌和新產品的促銷行銷支援。

Administrative expenses were 5.1% of sales in Q2 of '24 compared to 5.3% in Q2 of '23, driven by tight management of payroll and discretionary spending. This led to an operating income of $17.9 million or a 75.6% increase compared to $10.2 million in Q2 of '23. Adjusted operating income was $21.8 million or an 81% increase compared to Q2 of '23. After the impact of income taxes of $4.8 million compared to $2.4 million in Q2 fiscal '23, net earnings increased 94% to $13.3 million, resulting in reported earnings per share of $0.69, compared to $0.36 in the prior-year period.

受薪資和可自由支配支出嚴格管理的推動，24 年第二季管理費用佔銷售額的 5.1%，而 23 年第二季為 5.3%。這使得營業收入達到 1,790 萬美元，與 2023 年第二季的 1,020 萬美元相比增長了 75.6%。調整後營業收入為 2,180 萬美元，與 23 年第二季相比成長 81%。與 23 財年第二季的 240 萬美元相比，所得稅影響為 480 萬美元，淨利成長 94% 至 1,330 萬美元，報告每股收益為 0.69 美元，而去年同期為 0.36 美元。

Adjusted diluted earnings per share were $0.84 for the quarter compared to $0.43 in the prior-year period. Adjusted EBITDA increased 43.1% to $39.3 million from $27.5 million in the prior-year period, and our effective tax rate was 26.6% in the second quarter. Looking at our liquidity position, we continue to have a healthy balance sheet and overall strong liquidity position with $43.6 million in cash and approximately $17 million in debt.

本季調整後稀釋每股收益為 0.84 美元，去年同期為 0.43 美元。調整後 EBITDA 成長 43.1%，從去年同期的 2,750 萬美元增至 3,930 萬美元，第二季的有效稅率為 26.6%。看看我們的流動性狀況，我們繼續擁有健康的資產負債表和整體強勁的流動性狀況，現金為 4,360 萬美元，債務約為 1,700 萬美元。

Our ability to improve cash flow through working capital initiatives and stronger profitability is generating more cash to pay down debt, raise dividends and continue investing in our business. Our focus will continue to be on maintaining a healthy balance sheet and prudent leverage position which enables us to continue investing in the growth of our business and returning value to our shareholders.

我們透過營運資本計畫改善現金流的能力和更強的獲利能力正在產生更多現金來償還債務、提高股息和繼續投資於我們的業務。我們的重點將繼續是維持健康的資產負債表和審慎的槓桿狀況，這使我們能夠繼續投資於業務成長並為股東回報價值。

In addition, we have ample availability under our revolver of approximately $198 million in additional borrowing capacity. In summary, we are executing our strategy, improving operational efficiencies and profit margins, and expanding growth opportunities across channels and customers.

此外，我們還擁有約 1.98 億美元的充足額外借款能力。總之，我們正在執行我們的策略，提高營運效率和利潤率，並擴大跨通路和客戶的成長機會。

Our second-quarter performance together with our robust balance sheet and liquidity position has us positioned to continue driving growth across our brand portfolio and customer channels. We are executing our strategy and remain confident in our plans to continue driving profitable growth and value to our shareholders.

我們第二季的業績以及強勁的資產負債表和流動性狀況使我們能夠繼續推動我們的品牌組合和客戶管道的成長。我們正在執行我們的策略，並對繼續推動利潤成長和為股東創造價值的計劃充滿信心。

I would now like to turn the call over to the operator for questions and answers. Thank you.

我現在想將電話轉給接線員詢問問題和解答。謝謝。

(Operator Instructions) David Shakno, William Blair.

（操作員說明）David Shakno、William Blair。

Two quick questions for you guys. First off, can you help us quantify the savings that may be achieved with the third distribution center in Arizona that's now up and running?

有兩個簡單的問題想問你們。首先，您能否幫助我們量化亞利桑那州現已啟動並運行的第三個配送中心可以實現的節省？

Ken, I don't know if you want to look forward towards what that savings might be. But David, that third one just got into place. And so what we've said pretty consistently is once we get those three distribution networks into place, we believe that we can drive the percentage of sales of distribution down into that 10% or lower range. And they're just now getting the place. We haven't seen that savings yet, but we think that savings is yet to come in short order over the next six months to a year.

肯，我不知道您是否希望期待節省的金額。但是大衛，第三個剛剛就位。因此，我們一貫表示，一旦這三個分銷網絡就位，我們相信我們可以將分銷銷售額的百分比降低到 10% 或更低的範圍。他們現在才剛剛獲得這個位置。我們還沒有看到這種節省，但我們認為在接下來的六個月到一年內還不會在短期內實現節省。

Yeah. Dave, I would add to that. You do need to look at the savings collectively as all three of those RDCs and the change we've made work together. Just to add to what Dan said, I think we have come out and said in previous meetings. The business case for this as it's all integrated and working together, we think, will save us $10 million a year in that range give or take. We're really confident about that. And it will be really the next quarter and the Q4 next year when all this really starts to be a bit more seamless. And I think we'll start to see that percent of sales come down under that 10% range that Dan mentioned.

是的。戴夫，我想補充一點。您確實需要綜合考慮節省的成本，因為所有這三個 RDC 以及我們所做的變革都在共同發揮作用。只是補充一下丹所說的，我想我們在之前的會議上已經說過了。我們認為，由於所有這些都整合並協同工作，因此業務案例每年將在該範圍內節省 1000 萬美元。我們對此非常有信心。到了下個季度和明年的第四季度，所有這一切才真正開始變得更加無縫。我認為我們將開始看到銷售額百分比下降到 Dan 提到的 10% 範圍以下。

Really excited about that distribution network though. I love what it's already performing at and how it's helping us better serve the customer and then know that that savings is right around the corner.

不過，我對這個分銷網絡真的很興奮。我喜歡它已經實現的功能，以及它如何幫助我們更好地為客戶服務，然後知道節省的成本就在眼前。

And then if I can slip in one other, I just wanted to know what attracted you to acquiring the Thinsters brand. I know in the prepared remarks, you mentioned that you produced that anyway. But if you could just talk about any plans you have for Thinsters, whether it's new flavors, distribution or something else that I'm not thinking of?

如果我可以插話一下，我只是想知道是什麼吸引您收購 Thinsters 品牌。我知道在準備好的發言中，你提到無論如何你都製作了它。但您能否談談您對 Thinsters 的任何計劃，無論是新口味、發行還是其他我沒有想到的事情？

What really did attract us, you already have mentioned it is, we make the product, right, and love the product and enjoy the brand. And so had the opportunity to acquire it. It's a little bit out of what I've said that we're looking for in general. We look for something that's larger than that. But this is a product that we've been making, and if you tasted it, it's really, really good.

您已經提到過，真正吸引我們的是，我們製造產品，正確的，並且熱愛產品並享受品牌。因此有機會獲得它。這有點超出了我所說的我們正在尋找的總體範圍。我們尋找比這更大的東西。但這是我們一直在生產的產品，如果你嚐過它，它真的非常非常好。

I like the brand. I like the opportunity to be able to grow it not just in retail but in foodservice as well. And I like its clean label, honestly. There's just a lot about it, the product, that I like. It’s small. It's much smaller than what we've been looking at, but it was just a nice tuck-in for our organization.

我喜歡這個品牌。我喜歡有機會不僅在零售業而且在餐飲服務業都能夠發展它。老實說，我喜歡它的清潔標籤。它的產品有很多我喜歡的地方。它很小。它比我們所看到的要小得多，但對於我們的組織來說，這只是一個很好的整合。

Todd Brooks, The Benchmark Company.

托德·布魯克斯，基準公司。

First question for me, and this is just to get my mind around the gross margin performance in the quarter and the normal seasonal pattern that we would see would be gross margins that were 500 basis points stronger for the second half of the year. How do we think about the improvement? I know, Ken, you're staying anchored to the 30%, but that based on the historical seasonality seems like a low bar to clear. So how do you want us thinking about the seasonal gross margin performance in the second half of the year?

我的第一個問題，這只是為了讓我了解本季的毛利率表現，我們看到的正常季節性模式是下半年的毛利率將提高 500 個基點。我們如何看待改進？我知道，Ken，你會保持固定在 30% 的水平，但基於歷史季節性，這似乎是一個需要清除的低門檻。那麼您希望我們如何看待下半年的季節性毛利率表現呢？

Yeah, it was an exceptional quarter. Margin performances were a lot of things, Todd, are really starting to work together. It's the mix of what we're selling. It's the efficiencies that we're gaining in our production facilities. We're doing a much better job of leveraging the capacity of each facility really across the product categories. Gross margin improved significantly year over year. And we finally, I think, got pricing calibrated with cost really well. So all that working together really led to one of the best second quarters in terms of margin in the last 10 or 15 years for the company.

是的，這是一個特別的季度。托德，保證金表現有很多事情，真的開始一起工作。這是我們銷售的產品的組合。這是我們在生產設施中獲得的效率。我們在真正跨產品類別利用每個設施的產能方面做得更好。毛利率較去年同期顯著提高。我認為，我們最終很好地根據成本調整了定價。因此，所有這些共同努力確實為該公司帶來了過去 10 或 15 年來最好的第二季利潤率之一。

It sets us up really nicely for the full year. I certainly expect when we say 30% or better, I think I expect it to be the better. We go into Q3 and Q4 where I expect margins, if you remember last year they were very strong. I expect our Q3, Q4 this year to be probably similar to a year ago because the comparability is on a different scale than it was this Q2 than last year Q2. That ought to translate into us doing potentially up to 31% of sales for the year. We can execute that.

這讓我們為全年做好了很好的準備。我當然期望當我們說 30% 或更好時，我認為我期望它會更好。我們進入第三季和第四季，我預計利潤率很高，如果你還記得去年的話，他們的利潤率非常強勁。我預計今年第三季、第四季可能與一年前相似，因為今年第二季的可比性與去年第二季的可比性不同。這應該意味著我們的銷售額可能佔全年銷售額的 31%。我們可以執行它。

Todd, we've had a lot of conversations about what we've been doing here at the organization and really transforming the model. And gross margin is one of those areas that we're keenly focused on from sales to operations to finance, and it's nice to see it really working. And that's what we saw in this quarter.

托德，我們就我們在組織中所做的事情以及真正改變模型進行了很多對話。毛利率是我們從銷售到營運再到財務密切關注的領域之一，很高興看到它真正發揮作用。這就是我們在本季看到的情況。

On a longer-term basis, Dan, with the new lines that you guys invested in last year that you're producing higher margin products on with the success with cross selling. What in that three- to five-year horizon is the gross margin kind of profile for this business as you guys are thinking about the longer-term vision of the operating model?

從長遠來看，丹，透過你們去年投資的新生產線，你們正在生產利潤率更高的產品，並且交叉銷售取得了成功。當你們考慮營運模式的長期願景時，該業務在三到五年內的毛利率狀況如何？

Well, as we said, we absolutely believe that we can continue to grow that margin, right? And we'd love to see us somewhere at some point in that mid-30s range. I think we're doing all the right things, right. And the teams are focused on efficiencies in the plans. The new lines are working. Our sales group is understanding pricing better than they ever have before.

好吧，正如我們所說，我們絕對相信我們可以繼續提高利潤率，對吧？我們很樂意在 30 多歲的某個時間點看到我們。我認為我們正在做所有正確的事情，對吧。團隊專注於計劃的效率。新線路正在運行。我們的銷售團隊比以往任何時候都更了解定價。

The finance teams come alongside and help shape that as well. And so we're hopeful, as we've said that we knew we could get to 30% and what the next milestone is. I would love it to be in that mid-30s over the next four to five years.

財務團隊也會配合併幫助塑造這一點。所以我們充滿希望，正如我們所說，我們知道我們可以達到 30% 以及下一個里程碑是什麼。我希望在接下來的四到五年內能維持在三十多歲。

Yeah. I think, Todd, one of the keys to that will be to spread out the seasonality for Dippin' Dots. And we mentioned, Dan mentioned in his script, the number of big wins that are coming in that business down the road particularly in theaters. If we can spread that sales out in Q1 and Q2 of our fiscal year, then that starts to build towards even stronger gross margins on a yearly basis.

是的。托德，我認為關鍵之一是分散 Dippin' Dots 的季節性。我們提到，丹在他的劇本中提到，未來該行業將取得巨大勝利，特別是在影院。如果我們能夠將銷售額分散到本財年的第一季和第二季度，那麼每年的毛利率就會開始提高。

Ken, you talked loosely about commodities kinds of wins and losses in the quarter, but can you talk about what the overall basket performance was in the quarter? And can you remind us, I think when we were living through the spike in sugar cost late last year that you may have been hedged through the second quarter here. So just wondering the second quarter reality commodity wise and then the forward outlook that you have for commodities in the back half of the year?

肯，您寬鬆地談論了本季度大宗商品的輸贏，但是您能談談本季度的整體籃子表現嗎？您能否提醒我們，我認為去年年底我們經歷糖價飆升時，您可能已經在第二季度進行了對沖。那麼，只是想知道第二季大宗商品的實際情況，以及下半年大宗商品的前景展望？

Yes. I couldn't say enough positive things about what our procurement organization is doing to get ahead of some of these things. Sugar was double digits a few months ago. It has come down. It's like, I think it's around 6%, 6.5% for us. But we were managed against that with contracts in place, and we are in a good position to leverage where those prices are in the six months as well. So we're not locked into old prices, and we're able to react to that.

是的。對於我們的採購組織為領先於其中一些事情所做的工作，我無法說出足夠積極的話。幾個月前，糖價為兩位數。它已經下來了。我認為對我們來說大約是 6%、6.5%。但我們已經透過合約進行了管理，而且我們也處於有利地位，可以利用六個月內的價格。因此，我們不會受制於舊價格，我們能夠對此做出反應。

So feel good about our position there. We've done a good job of locking in supply and cost on chocolate, which is probably the biggest commodity ingredient challenge for us and many others that use chocolate. The good news there is about half of that is it built in the contracts where we pass increases, decreases on to the customer. But we have that well managed. If you look at Q2, probably on a net basis, we were slightly favorable in terms of inflation, deflation.

所以對我們在那裡的地位感到滿意。我們在鎖定巧克力的供應和成本方面做得很好，這對我們和許多其他使用巧克力的人來說可能是最大的商品成分挑戰。好消息是，其中大約一半是建立在合約中的，我們將增加或減少的費用轉嫁給客戶。但我們管理得很好。如果你看看第二季度，可能是在淨值基礎上，我們在通膨和通貨緊縮方面略有有利。

As we look outward, it's really focusing in on what inflation continues to do. I think you saw the latest CPI numbers are about 3.5%. I don't know that anybody sees total inflation getting down to two anytime soon. We'll probably -- food is doing a little bit better than that, more in the 2%, 2.2%. So if I had to project out, I'd probably say net, net, we may see inflation of around 2% to 2.5% as we look forward. But we're in good shape where we need to be to lock in and protect ourselves.

當我們向外看時，它真正關注的是通貨膨脹的持續影響。我想你看到最新的CPI數字約為3.5%。我不知道是否有人會認為總通膨率會很快降至兩倍。我們可能會——食品的表現會比這好一點，更多在 2%、2.2% 的範圍內。因此，如果我必須預測的話，我可能會說淨值，淨值，我們預計通膨率可能會達到 2% 至 2.5% 左右。但我們的狀態良好，我們需要鎖定並保護自己。

Hey, Todd. I could just echo something that Ken said as well. Really proud of what that team is doing. Another area where we're really transforming the company. We brought in a lead for procurement about a little over a year ago, and he's just doing a tremendous job leading that group and helping us get better in ways that we needed to get better.

嘿，托德。我也可以重複肯所說的話。為該團隊所做的事情感到非常自豪。我們正在真正改變公司的另一個領域。大約一年多前，我們聘請了一位採購主管，他在領導團隊方面做得非常出色，並幫助我們以我們需要的方式變得更好。

Connor Rattigan, Consumer Edge.

康納拉蒂根，《消費者邊緣》。

So, Ken, you called us an inventory build in the quarter. I guess, I was just curious maybe how much of a tailwind was that inventory build? And were there maybe any other one-time items like pull-forwards or anything like that that drove the top-line? And just thinking about that in total, I guess, also, with all these new business wins that you guys called out, should we need to start thinking about the top-line as maybe trending back to that, pre-COVID mid-single-digit growth?

所以，肯，你稱我們為本季的庫存增加。我想，我只是好奇庫存的增加有多大的動力？是否還有其他一次性項目，例如前拉或類似的項目可以推動營收？總的來說，我想，隨著你們所說的所有這些新業務的勝利，我們是否應該開始考慮頂線，因為可能會回到新冠疫情之前的中單-數字增長？

Yeah, Connor, we talked about this in Q1, kind of the opposite effect, particularly in areas like frozen novelties where you're in the winter months, but a lot of dialing back of inventory. And in the second quarter, I think as people look forward to spring and summer, we saw a little bit of that being trued up, which I think benefited us.

是的，康納，我們在第一季度討論過這一點，有點相反的效果，特別是在冬季的冷凍新奇商品等領域，但庫存大量減少。在第二季度，我認為當人們期待春季和夏季時，我們看到了一些調整，我認為這使我們受益。

We also like in frozen novelties saw really nice growth in Dogsters and in Icee novelties. Those were all benefits as well. And really some of the work we've done, and Dan talked about this, and improving on time and in full metrics with our supply chain changes, reduced some of the ODA fees that we were paying. So that benefited that sales number as well because those were deductions that we were taking in the prior year.

我們也喜歡在《冰凍新奇》中看到《Dogsters》和《Icee》新奇中的真正良好增長。這些都是好處。事實上，我們所做的一些工作，丹談到了這一點，並透過我們的供應鏈變化按時和全面指標進行改進，減少了我們支付的一些官方發展援助費用。因此，這也有利於銷售數字，因為這些是我們在上一年扣除的。

So it's a combination of a lot of things that are working well and worked well in the quarter. And hopefully, it's a signal for what our customers kind of see as it relates to kind of the entertainment areas and people getting out and buying in Q3 and Q4 and in the spring and summer that the outlook is that they'll see some improvement there.

因此，這是本季運作良好且運作良好的許多事情的結合。希望這是我們的客戶所看到的一個信號，因為它與娛樂領域的類型以及人們在第三季度和第四季度以及春季和夏季外出購買有關，前景是他們會看到那裡的一些改善。

I mean, I know the consumer many retailers have been a bit stretched, but I think there's some anticipation that some of that may improve. In fact, I know the outlook on travel is pretty strong based on something I read this morning. So, it's a combination of many of those things that benefited us in the quarter.

我的意思是，我知道許多零售商的消費者有點捉襟見肘，但我認為人們預計其中一些情況可能會有所改善。事實上，根據我今天早上讀到的內容，我知道旅行前景相當樂觀。因此，許多因素的結合使我們在本季受益。

So I guess also two in the sort of in the same vein. We've heard from numerous other reporters that there appears to be a widespread slowdown in foodservice traffic. And I know you guys called that out pretty substantially last quarter, but it was sort of noticeably absent from this quarter's commentary. I guess, what are we seeing on your end, and is traffic still down? And if not, what do you think changed?

所以我猜想也有兩個類似的情況。我們從許多其他記者得知，餐飲服務流量似乎普遍放緩。我知道你們在上個季度相當多地指出了這一點，但在本季度的評論中明顯沒有提到這一點。我想，我們在您這邊看到了什麼？如果沒有，您認為發生了什麼變化？

Connor, we're certainly in an interesting environment with consumers, right? I kind of call it like choppy waters or pickle customers. We had a great quarter, right? Q2 was a really strong quarter for us, and we didn't see that nearly as much we did in Q1, but we're watching it closely. We think that, as we've said over the past three years, we have a product that is almost an experiential kind of product.

康納，我們確實與消費者處於一個有趣的環境中，對吧？我稱它為波濤洶湧的水域或泡菜顧客。我們度過了一個很棒的季度，對吧？第二季度對我們來說是一個非常強勁的季度，我們沒有看到第一季那麼多，但我們正在密切關注。我們認為，正如我們在過去三年中所說的那樣，我們擁有一款幾乎是體驗式產品的產品。

And so often you might cut back at the grocery store or in the basket, but you might still buy the group an Icee on the way home or you might get a churros or you might get a pretzel as a reward or a treat, something out of the ordinary. We had a really good quarter. We're going to watch the consumer closely. We'll react to it if we see some downturn, but our teams are keenly aware. And again, I just call it kind of a little bit of choppy waters when it comes to consumer.

很多時候，你可能會在雜貨店或購物籃裡減少開支，但你仍然可能在回家的路上給大家買一杯Icee，或者你可能會得到一個西班牙油條，或者你可能會得到一個椒鹽捲餅作為獎勵或款待，一些東西平凡的。我們度過了一個非常美好的季度。我們將密切關註消費者。如果我們看到經濟低迷，我們會做出反應，但我們的團隊敏銳地意識到。再說一遍，對消費者來說，我只是稱之為有點波濤洶湧的水域。

And if I can just squeeze one more in real-quick. So, on the RDC, congrats on getting all three of those up and running as a big, big, long running accomplishment. So I noticed that you mentioned only about 80% of product is flowing through that system. I guess just wanted to check-in on the remaining 20%. I guess, is that just going to take maybe a little bit longer to get through and that's kind of what the puzzle is to get you down to that 10% distribution margin number or are you guys maybe growing so fast that you kind of just need that excess capacity?

如果我能盡快再擠一粒就好了。因此，在 RDC 上，祝賀所有這三個項目啟動並運行，這是一項巨大的、長期的成就。我注意到您提到只有大約 80% 的產品流經該系統。我想只是想檢查一下剩下的 20%。我想，這可能需要更長的時間才能完成，這就是讓你下降到 10% 的分配利潤率數字的難題，還是你們可能增長得如此之快，以至於你只需要那產能過剩呢？

Well, we need more capacity than just the three RDCs. We'll probably use an additional RDC when it's all said and done, not one that we own, but one that we use down in Florida market. But we still have some that we need to shut down. Trying to get that fine-tuned is one of those things that we're working on right now. The team has done a tremendous job, and you can see it in our numbers almost across the board. But we will continue to shut down some of those other 3PLs over the next three to six months.

嗯，我們需要的容量不僅僅是三個 RDC。一切塵埃落定後，我們可能會使用額外的 RDC，不是我們自己的，而是我們在佛羅裡達市場使用的。但我們仍然有一些需要關閉。嘗試進行微調是我們現在正在努力的事情之一。團隊做得非常出色，您幾乎可以從我們的數據中看到這一點。但我們將在未來三到六個月內繼續關閉其他一些 3PL。

Yeah. Connor, just a reminder, even with this new structure, there will still be maybe six to eight facilities that we'll use to move product in and out, whether it's 3PL regionally located. So it's not necessarily just going from where we were, just three. There'll still be a few other facilities as well, but that 80% will probably build a little bit higher as we move forward also.

是的。康納，提醒一下，即使採用這種新結構，我們仍然可能會使用六到八個設施來將產品移入和移出，無論是位於區域內的 3PL。所以不一定只是從我們原來的位置開始，只是三個。仍然會有一些其他設施，但隨著我們的推進，80% 的設施可能會建造得更高一些。

Andrew Wolf, CL King.

安德魯沃爾夫，CL金。

I wanted to ask a revisit on the gross margin. Could you tell us either if it's gross price, how much price was in there or net of mix? I don't know how you guys communicated about that, but you did, I think, in the release call out price and mix, first listed it first, which often means was the biggest contributor. So I'd just like to get a sense of that versus maybe volume?

我想重新檢視一下毛利率。您能否告訴我們是總價、總價還是混合後的淨價？我不知道你們是如何溝通的，但我認為你們在發布中提到了價格和組合，首先列出了它，這通常意味著是最大的貢獻者。所以我只是想了解它與音量的關係？

Yes. Well, let me see if I can answer that in a few ways. One, I want to be clear, each of the three segments had positive volume growth. So, units were up in all three of the business areas. Pricing that we've been taking with the exception of the pricing we take every January with Icee, and I think we took one in January with Dippin' Dots. The other pricing is more surgical. So we're having to do a few surgical things with chocolates, we've done some with sugars, but nothing wholesale.

是的。好吧，讓我看看是否可以透過幾種方式回答這個問題。第一，我想澄清的是，這三個細分市場中的每一個細分市場都實現了銷量正成長。因此，所有三個業務領域的單位數量均有所上升。我們一直在採用的定價，除了我們每年一月與 Icee 採取的定價之外，我認為我們在一月份與 Dippin' Dots 採取了一個定價。其他定價則更具手術性。所以我們只好用巧克力做一些外科手術，我們用糖做了一些，但沒有批發。

So when you think about margin for the quarter, I don't really have it kind of broken out Andrew, or I could say this much as price, as much as this. I can just tell you, that when we kind of walk through it, it's a combination of really all of the above. The new business we have in Churros is driving really good margins for us. We've really done a lot to improve the production efficiencies in our bakery facilities. That is improving margins on bakery items.

因此，當你考慮本季的利潤率時，我並沒有真正了解安德魯的情況，或者我可以說這個和價格一樣。我可以告訴你，當我們經歷它時，它實際上是上述所有內容的組合。我們在油條上的新業務為我們帶來了非常好的利潤。我們確實做了很多工作來提高烘焙設施的生產效率。這正在提高烘焙食品的利潤。

Some of the automation we put in is also starting to drive benefits in that way. So we're just finally getting to the point where these initiatives we've had whether it's procurement, whether it's operations, whether it's margin management and sales, and we manage mix and the products we grow. That is all really working nicely together to get us to the margins that we reported this quarter.

我們投入的一些自動化也開始以這種方式帶來效益。因此，我們終於達到了我們所採取的這些措施的地步，無論是採購、營運、利潤管理和銷售，還是我們管理組合和我們開發的產品。所有這些確實很好地協同工作，使我們達到了本季度報告的利潤。

I just wanted to ask on, I guess, Subway. It looks like they announced it sort of mid to late January and at least from my observation started advertising pretty heavy later in the quarter. How should we think about just kind of -- could you gave us a number for Subway, how that run rate can -- is that understated as a run rate? Or do you think there was a bunch of trial and maybe -- like how should we think about the $6 million or so in sales you called out going forward?

我想我只是想問地鐵。看起來他們是在一月中下旬宣布的，至少從我的觀察來看，他們在本季晚些時候開始大量廣告。我們該如何思考——你能給我們一個地鐵的數字嗎？或者你認為有很多試驗，也許——比如我們應該如何看待你聲稱的未來 600 萬美元左右的銷售額？

It's a great new piece of business for us, Andrew, for sure. I think they're still dialing in on what that means even to them. The positioning of where we're at with that churro is great. There's three tiers to the foot long pricing, and we're at the bottom tier of that. And we've been able to because of kind of foreseeing the need in Churros and the new lines that we've had, we've been able to keep them in stock where a couple of the other areas struggled with that, which might even turn out to be an opportunity for us in some ways.

安德魯，這對我們來說無疑是一項偉大的新業務。我認為他們仍在思考這對他們來說意味著什麼。我們對西班牙油條的定位非常棒。一英尺長的定價分為三層，我們處於最底層。我們之所以能夠做到這一點，是因為我們預見了西班牙油條的需求以及我們擁有的新產品線，我們能夠在其他一些地區遇到困難的地方保留它們的庫存，這甚至可能從某些方面來說這對我們來說是一個機會。

So I think they're still dialing in on it. I don't know that we have an exact number that we'd be able to guide you with that particular customer, but we love the positioning and believe that we have some opportunities with them internationally even.

所以我認為他們仍在努力。我不知道我們有一個確切的數字可以引導您與該特定客戶聯繫，但我們喜歡這個定位，並相信我們甚至在國際上有一些與他們合作的機會。

Robert Dickerson, Jefferies.

羅伯特·迪克森，傑弗里斯。

Dan, you said a lot today. Business is doing great. So congrats like everyone else has said. I guess question I have, you kind of make these comments about like portfolio positioning and kind of indulgent treat that frankly a lot of your products are still affordable. As was brought up before, lot of companies talking about some pressure in food service, restaurants, et cetera.

丹，你今天說了很多。生意做得很好。就像其他人所說的那樣，恭喜你。我想我有一個問題，你對投資組合定位和某種放縱的待遇做出了這樣的評論，坦白說，你的許多產品仍然是負擔得起的。如同先前所提到的，許多公司都在談論食品服務、餐廳等方面的壓力。

But at the same time, you're saying, there are a lot of new business wins like Subway comes up, Plunk said in the prepared remarks, like handhelds, frankly, gross was off the charts because the new mass merchant business. Dave & Buster's you've spoken to before. Dippin' Dots sounds like it has a nice little runway even through the back half of this year.

但同時，你說，有很多像賽百味這樣的新業務出現了，普朗克在準備好的講話中說，像手持設備一樣，坦率地說，由於新的大眾商業業務，總收入突破了圖表。戴夫和巴斯特你以前曾和他們說過話。 Dippin' Dots 聽起來即使在今年下半年也有一個不錯的小跑道。

So, I'm just curious like would you characterize this as like demand broadly in the market could be a little softer in different parts, but given our product portfolio and these new business wins, that clearly, we're doing better.

所以，我很好奇你是否會將此描述為市場上不同部分的廣泛需求可能會稍微疲軟，但考慮到我們的產品組合和這些新業務的勝利，很明顯，我們做得更好。

And then also I'm curious, as you talk to the retailers, are the retailers saying, yes. Like, we really haven't seen this office in your business. So, absolutely, we're going to blast that out in all our C stores. I'm just kind of trying to navigate kind of like why it's doing better, and then also combine it kind of with this new business upside potential.

然後我也很好奇，當你與零售商交談時，零售商是否說，是的。就像，我們真的沒有在你們公司看過這個辦公室。所以，我們絕對會在所有 C 店推出這款產品。我只是想弄清楚為什麼它做得更好，然後將其與新的業務上行潛力結合起來。

Well, I do think you hit it on the nose there, Rob, and good morning. Thanks for the call. I do think you hit it on the nose though. Our business is diversified enough that, one, we are an indulgent and we're a treat and a reward. And so I don't think we get as impacted as some of the things that are more staples that people are cutting back on. And I love what our team is doing with innovation and new products that we're releasing that are selling really well. And then kind of the third leg to that is the sales team bringing new opportunities to the business, which is something that we've been driving on.

好吧，我確實認為你說得對，羅布，早安。感謝您的來電。我確實認為你擊中了鼻子。我們的業務足夠多元化，第一，我們是一種放縱，我們是一種享受和獎勵。因此，我認為我們不會像人們正在削減的一些更重要的東西那樣受到影響。我喜歡我們的團隊在創新和新產品方面所做的工作，我們發布的產品銷售量非常好。第三步是銷售團隊為業務帶來新的機會，這是我們一直在推動的事情。

It's really part of the strategy that we have been laying out over the last three years or so, and it has really come into play. And I talked about cross-selling several times and even got the questions, can you really make that happen because it's not easy to make happen, but it is happening here at J&J. We're seeing the sales team really work with one another to be able to bring new products and the customers that we deal with today, and they're working really hard at it. I'm proud of the sales team. I'm proud of the marketing team and the way that they brought innovation.

這確實是我們在過去三年左右制定的策略的一部分，並且已經真正發揮了作用。我多次談到交叉銷售，甚至提出了這樣的問題：你真的能做到這一點嗎？我們看到銷售團隊確實彼此合作，以便能夠為我們今天處理的新產品和客戶帶來新的產品，並且他們正在努力工作。我為銷售團隊感到自豪。我為行銷團隊以及他們帶來創新的方式感到自豪。

And I think we have the fortunate thing of having products that are indulgent treats, that are experiential, and all of those are working together. The consumer is a concern. We would -- Ken and I aren't sitting here being naive that it's soft out there in some ways, but that's not an excuse for us not growing sales. And that's what you would hear within our organization. We're going to continue to drive other areas even if it is soft out there.

我認為我們很幸運，擁有令人愉悅的、體驗性的產品，所有這些都在協同作用。消費者是一個關心的問題。我們會——肯和我坐在這裡，並不是天真地認為市場在某些方面表現疲軟，但這並不是我們不成長銷售額的藉口。這就是您在我們組織內聽到的。即使其他地區的情況疲軟，我們也將繼續推動其他地區的發展。

And then I guess just a follow-up question kind of around the demand landscape. You are entering or let's say almost entered what we normally consider your best part of the year. Some of the amusement parks have already opened. It seems like movie traffic maybe is a little bit still light.

然後我想這只是圍繞需求狀況的後續問題。您即將進入或幾乎進入我們通常認為您一年中最好的時期。一些遊樂園已經開業。看來電影流量可能還比較清淡。

So kind of like where we sit today, I guess, like, as you got through April. I've been asked the same question every year this time of year. Like, would you say that kind of demand that landscape, as you kind of think forward the next few months with respect to amusement parks and the other seasonal dynamics in the business seems to be fairly sound like pretty good?

我想，這有點像我們今天坐的地方，就像你們度過四月一樣。每年這個時候我都會被問到同樣的問題。就像，你會說這種景觀需求嗎？

I think we're positioned really well. Of course, you get into these six months and weather plays a big part in it. So, if the weather gods can shine on us and I mean that shine on us, have that sun out there and keep people to the parks, the amusement park industry is forecasting a pretty good season. The movie industry, we hadn't talked about a little bit, it has been soft and that strike did affect the movie industry and they're expecting kind of a softer year overall, down 15% or so. But it builds as you get to the latter half of the year as new movies start to be released.

我認為我們的定位非常好。當然，進入這六個月後，天氣在其中扮演著很大的角色。因此，如果天氣之神能夠照耀我們，我的意思是照耀我們，讓陽光在那裡，讓人們去公園，遊樂園行業預計會有一個相當好的季節。電影業，我們沒有談論過一點，它一直很疲軟，罷工確實影響了電影業，他們預計今年整體會比較疲軟，下降 15% 左右。但隨著下半年新電影的上映，這種情況就會逐漸加劇。

We're kind of in that lull time right now, but we expect that to come back more in the fourth quarter or first quarter of our fiscal 2025. But we're investing in that group. We're investing in the movie industry because we saw before the strike when you have the right movies in place, people are willing to come back out to the movies like the Barbenheimer effect last year. And so we're seeing some good growth there with our Dippin' Dots brand. But I think we're in good position as we go into the core summer months.

我們現在正處於平靜時期，但我們預計這種情況會在 2025 財年第四季或第一季恢復更多。我們正在投資電影業，因為我們在罷工之前看到，當你有合適的電影時，人們願意回到電影中，就像去年的巴本海默效應一樣。因此，我們看到 Dippin' Dots 品牌在該領域取得了良好的成長。但我認為，隨著我們進入核心夏季月份，我們處於有利位置。

Thank you. I am showing no further questions at this time. I will now turn it over to Daniel Fachner for closing remarks.

謝謝。我目前沒有提出任何進一步的問題。現在我將把它交給丹尼爾法赫納（Daniel Fachner）做總結發言。

Great. Thank you very much. I appreciate that and I appreciate everybody's questions today. So looking ahead, we remain focused on executing our strategy, including maximizing every sale and new business opportunity to further grow our core brands, while investing in our capabilities and resources to improve our overall operations.

偉大的。非常感謝。我對此表示感謝，也感謝大家今天提出的問題。因此，展望未來，我們仍然專注於執行我們的策略，包括最大化每筆銷售和新業務機會，以進一步發展我們的核心品牌，同時投資我們的能力和資源，以改善我們的整體營運。

While we are closely monitoring consumer and inflationary trends, we expect to build momentum through the second half of fiscal 2024 and remain excited about the many opportunities ahead of us to deliver long-term value to our employees, partners, and shareholders. In the interim, should you have any questions or wish to speak to us, please contact our Investor Relations firm, JCIR, at 212-835-8500. Thank you very much.

雖然我們正在密切關註消費者和通膨趨勢，但我們預計將在 2024 財年下半年建立勢頭，並對我們面前的許多機會感到興奮，為我們的員工、合作夥伴和股東提供長期價值。在此期間，如果您有任何疑問或希望與我們聯繫，請聯繫我們的投資者關係公司 JCIR，電話：212-835-8500。非常感謝。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。