J&J Snack Foods (JJSF) 15 Nov 222022 Q4 Earnings call transcript

Hello, thank you for standing by, and welcome to the J&J Snack Foods Fiscal 2022 Fourth Quarter Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference may be recorded. I would now like to hand the conference over to your speaker today, Norberto Aja, please go ahead.

good and operator, you, morning, everyone. Thank for fourth quarter you joining the XXXX fiscal Foods Snack conference J&J Thank call. so, a We'll get harbor your doing and with language. management's me started in just questions, a but the to read minute minute comments let safe take before Litigation This Securities forward-looking the contain XXXX. of will within the Act call of meaning statements Private Reform management's and considered All of historical matters and statements relate forward-looking including financial supply not statements, to performance, made goals, COVID-XX on expected constraints, do this our plans, statements anticipated our and regarding should business. objectives impact call be strategies, on that industry-wide fact, of the These other to different forward-looking from statements known and important involve factors or that any future that be materially results, results, promises expressed the are achievements by nor performance or may implied guarantees or statements. uncertainties, and unknown achievements risks, cause neither performance the September made could year Factors and from call other discussed for differ statements to by XX-K in those with today. the this and Form materially our indicated report the XXXX XX, actual on results Securities forward-looking Exchange on ended annual filings cause Commission, XXXX. such date of XX, of statements represent the Any call November management's as this forward-looking estimates

some While even obligation update forward-looking we point cause change. disclaim subsequent such may our we in events to statements elect future, if at the so to any do views to

our to jjsnack.com. which earnings be reconciled Relations including operating company's of website income, EBITDA, which are can non-GAAP nearest or in adjusted we share, the addition, found metrics, reference per all also at Investor release, In of certain may GAAP section press earnings in the the metric

Chief Plunk, Chief on the Financial call Officer. our Executive and Officer; Ken today our Joining are Dan me Fachner,

call the a go go Executive to Dan. that, remarks, over Officer. Chief ahead session. Following the Please Dan like now and will With Management's to J&J Fachner, Foods' call turn we Snack for open I would ahead, question-and-answer prepared

fourth morning the year, We fiscal to fourth Thank and brands strategy. you great results. our We had this a of us against execution great everyone. joining XXXX continued discuss reflecting quarter you, Norberto, strength and and our quarter appreciate overall and growth our good full-year an morning,

fourth million. consecutive to ever leading revenue, revenue $XXX by the quarter of marks over our quarter This record best

has throughout of topline businesses, and by frozen foodservice, strong all Our consistent XXXX, across fiscal been gains driven our beverages. growth three retail,

of are organic We marketing and laser-focused refreshed production brands, by on and driving our core growth investment supported our strategies. capacity,

market strong and our expanded led Our position is extensions, across new by compelling customers, innovation. cross-selling product placements, better business,

business Dots our portfolio, financial and Dippin' goals. welcome model with also to brand our We aligns which perfectly

impact results bottom truck raw year, saw escalating by our year-over-year materials were ingredients, this line wages, sequential job with company and fuel. positioning in the superb the while driving more ongoing top-line the costs pleased success. gain the environment. and a did almost fiscal business our current chain carriers, and supply market every year, could on share managing increases sales we inflationary storage, other team Like to costs and outside impacted be future associated in costs. growth, ability Our I driver with and drive J&J not for Throughout

actions these in discussed cost offset procurement, taken pressures As R&D, we reduce distribution. operations, prior specific across quarters, and plant have to and

XXXX. in see increases margin the actions months. fiscal continued already fiscal last instituted have and because trends half over these price also have we XX benefits of improved of to in We three Gross second XXXX the expect

on reduction manufacturing product Going to improved efficiencies, initiatives, will focus we continue and mix. forward, cost

an million representing revenue increase year sales quarter the the will that quarterly over for inflationary our grew an third and initiatives, brand we stabilizes of continued margins this if and prior the really and Also, Service, versus Dippin' business are benefiting over focus Food growth. was Bakery continuing include of to growth XX.X% continue important increased increase Dippin' was from million segment and and revenue Dots still as Taking X% of versus quarter by XXXX It results sales. execute all-time look Churros the is quarter. on segment for $X.X fourth XX.X% beginning XX% fiscal fourth note acquisition. in confident line core our Dippin' XX% quarter versus XX% of grew year As novelties representing continued to the across business. a basis. we to Pretzels a at basis, grew a billion, strong is quarter repositioning high, Frozen the fiscal along strength delivered quarter, excluding growth Starting driven these Handhelds exclude full higher period impressive The XXXX deliver year year the full was brands all-time an $XX.X growth the with Dots these every full a increase XXXX. XX%, $XXX.X and the on in by saw with that a the versus XX% we XXX% environment growth you we our our high from On opportunities product fourth XX% cylinders. on Dots. revenue. as for fiscal Topline Food and over by Dots strong for all Soft Service quarter market Dippin' fire

our growth markets. customers, extension, our and core see current (ph). We and Pretzels, funnel Churros, onboard categories, with terms new expanding [dries] our in including is and of expanding one cakes about bringing new the in excited relationships customers of are opportunities Churros Hola tremendous videos. We new We the opportunities brand full a Soft product new snack in by this on progress the selling launching this we coming with service the couldn't supported quarter, of tools fastest-growing quarters. categories and brand, suite excited look and reporting forward to food in Churros, more be Churros about

Let's talk Dippin' about Dots.

new cross-brand ICEE opportunities cherry running I'm Dippin' made flavors team our brand. and service. and food rasp this and grow proud announce the ground the hit customers Blue theaters And and already excited collaboration, so with have iconic the we're new markets Dots, launching in sales under-penetrated including the Dippin' and fiscal QX. channels, progress We've first We about introducing significant Dots to to to

explore new are product how Dippin' the categories is also drive of retail can across example growth. starting into channels. We to designed to leverage This business Dots extend we our a concept, great to portfolio

in Dippin' said we previous combination Frozen and businesses. two we believe the the Beverage a As with comments, Frozen be seamless given of of the Novelty our changer game alignment will companies almost Dots

and strong across and categories, sales most Moving Frozen growth, Pretzels. a at segment to were XX% $XX.X Retail million fourth full year in year Soft also over X% Handhelds, segment, strong the and to Novelties, enjoyed on our including last Sales posting quarter by basis. of growing compared this

ICEE fiscal Our novelties in XX gain Dogsters want Frozen Luigi, in were I in leading grew over category. highlight over XX%. increased grew additional retail to Dogsters retailers up availability grow Novelty continues by -- business XX% by by and our brand which in as gains ICEE. led QX, Dogsters, to the we again, popularity driven frozen placement and

seeing to 'XX, Various on strong our fourth initiatives quarter over in growing currently should momentum fiscal are continue the drive over Frozen a XXXX quarter by by segment, Beverage of of full-year XX% XX% fourth versus and basis. We momentum. also fiscal underway this in the

locations. with restaurants, over tests in As a ICEE with progress Hamburger chain test multi-store have including a multiple an quick-serve XXX example, we with

and convenience product customer, store number Piper also onboarded our a new a chain, Pizza major including efforts customers, a have Peter cinema of extensions. new We reflecting around

and we're On intent including our front, metrics. brand brands, the in Overall, brand core a health purchase have going on lot awareness improving aided marketing we on. making our progress scores

full As PR previously mentioned, launching brand, we and of to by marketing [indiscernible] tools follow test, and our customer a in media, also new churro are additional suite supported Churros, XXXX, support support. including selling Hola

Luigi's QX though in spots featuring campaigns a and Pretzel Eagles campaign will continue lost fiscal in of that capitalizing Philadelphia, night. Super frenzy Pretzel high Phillies media combination media, during QX, and city's in even shopper Eagles, on started over outdoor our continues targeted last the Super Our the recent and digital visibility the the promotion, fiscal

to social with in content activation new kick strategy. in nationwide media the digital curve For marketing leading and including And later in followed recently year bring brand our Dogsters, will of will our promotions light kid format. the and XXXX the marketing number positioning we Dippin' a Day. executed park Icecream we cup ICEE, and National campaign messaging Dots, dog in organic With shopper off for in with

in including to lemonade, are Frozen SLUSH Frozen Beverage and our Regarding and bites We feature filled are launching core and PUPPIE offerings as launches ever. in QX complement portfolio. business, our busy seasonal nuts will new we Novelty In SuperPretzel the product of new we strawberry we Frozen frozen introduce ICEE In XXXX. strong SuperPretzel, cherry. ICEE white innovation, new mango, our Novelty along as pretzel launched with buffalo-flavored will Bavarian sticks business, and a pots rest

relates in ways to on and business. we system fully are of integrating M&A, the J&J Dippin' to working focused executing grow into plans it As the Dots

We macro on ongoing margins, our will the and potential improving optimistic headwinds, opportunities building to we that brands summary, to core face complement products. model. our growing line, and in portfolio will business brand M&A we remain while evaluating innovating, expect continue focus In top and

vision clearer. has been long-term never Our

right the right to the portfolio, win. right have brand We the and team, strategy

Ken? CFO, a XXXX financial come. to yet to call over revenue like is would best year, was turn the While our record Plunk, fiscal Ken I performance. now the to to view

good Thank Dan, morning, you, and everyone.

XXXX to was including again churros up fiscal driven $X.X the strength XX.X% Services, XX.X% million a operating Our our Dippin' record XXXX, fiscal revenue resiliency Handheld $XX quarter, million XXXX. by were sales results in compared to the increase sales, strategy. an by year of billion, XX.X% quarter Strong sales. in in When a increase in Dots growing $XX.X largest XXXX the the XX.X%. $XXX.X Dots fourth our Dippin' increase Food total in Food of was with of QX revenue continues our be the business. Starting of and Services from and of underscore a over Full sales, sales, increase Frozen performance representing sales, which period. approximately is a net and quarter exceeded million sales business XX.X%, Novelty million $XXX.X by prior for year fourth XXX.X% increase of XX% or over representing benefiting Net segment versus XX.X% in

growth posted Pretzels, million and Retail Frozen Growth to compared decreased by offset softness biscuit also the margin and sales of Beverages a also year. XX.X% equipment We as XXXX. grew Growth in of -- sales which was machine $XXX.X and business compared Gross lines profit in product versus XX.X% healthy period over Handheld revenue sales, and an the Soft respectively. to or XXXX. Pretzel sales, X.X%, strong and which XX.X% fiscal well with increased rose the and prior sales QX QX previous XX.X%, to as a XX.X%, in XX.X%, while Frozen gross beverage The X.X%. of million segment versus partially servicing Soft quarter XX.X% XX.X%, Novelty $XX.X led was XXXX, by quarter for growth increased Frozen slight the these were sales XX.X% million improvement sales XX.X% XX.X%, in growth driven fiscal XX.X%. across in increasing a growth by year businesses of same $XX.X compared of saw period was Bakery of increase of our

pricing seeing we've initiatives Dan as this through are hold. take year now our margins, other to mentioned, progress, been manage improving significant and historic working As hard we inflation and

XXXX XXXX, QX in X.X% XXXX, quarter compared XX.X%. to million X.X% in the XX.X%. compared compared the improved versus the $XX.X expenses in distribution expense in down of led sales QX pressures sales but prior which $XX.X to sales compared our decline all an These increased to were million expenses to year X.X% Administrative selling a compared operating XXXX. sales results of expenses expenses. This XXXX. year-over-year $XX.X QX of XX.X% largely XXXX income of or QX operating and to income reflect X.X% across inflationary Distribution total million QX XX.X% of lines, represented period. expenses to to Marketing representing was did of were in fiscal of in particular Moving for in in statement, XX.X% XX.X%

earnings the to diluted charges expenses, of decreased share related adjusted the taxes considering reported share net and and million to compared $X.X related share impairments diluted $XX.X Dippin' income in After per resulting to one-time $XX.X Dots of purchase, income attributed XXXX, in $X.XX. adjusted Excluding mostly to of to acquisition was operating QX fiscal a $X.X our was period. million in earnings $X.XX compared $X.XX earnings per million prior million

continued with increased $XXX the Adjusted effective we inflation. compared X.X% cost EBITDA a to our to to EBITDA the despite cash Dippin' strong $XX sheet year balance Our and and position, million marketable with approximately XX% basis, liquidity at generated look $XXX for a prior period. overall fourth even million continue million recent year. $XX.X tax in million in of Dots was healthy securities position Taking adjusted and $XX.X we debt. million the have and the acquisition quarter XX% full the On rate for full in a liquidity

addition, revolver additional with under our In have borrowing availability million capacity. we ample of $XXX

opportunities is will investments strong are and our business, of position in In summary, returning us continue and shareholders our growth value for our fuel excited enabling our financial to continue ahead to that company to via investing in in strategic XXXX. about dividends. while our brands, Our the also we initiatives confident targeted quarterly portfolio fiscal business

extraordinary our to operating in more shareholders. customers organization resilient and the Operator? I infrastructure operating inflation to our a to order to added become open like our the strengthening we're value and on focused are and call and would now questions. offset improving to under We efficiencies deliver

Instructions] [Operator Rattigan you. first may question Thank you comes Consumer Our proceed. Edge, from with Connor

morning, and a on good there, great congrats quarter. Hey,

you, Good Thank Connor. morning.

foodservice came stronger for just maybe else data, on drivers can that we how of how up some component aware of just is much that we distribution you that nearly remind than XX% in on see in retail the distribution expected, Dippin' Yeah, maybe business tick than growth, Dots? other so Food retail some morning. a anything of sort over the guys also of really going? at looking is be just share and of And Good could don't last much few rollout there large should Dippin' us Dots we versus is the months, sort you in pricing color Service

Sure, the of XX increases out but through sales, to with the volume some Ken and off price closely. end to that I'll over see we pricing. kind so it. very In We're the We things three add growth categories portion, regards we of some of that's took some year. kick let had all months, watching helped yes, in certainly that the sales

categories. that date You but Dots things We really can predominantly over some being that's really it's isn't do hear well. in the a time across Dippin' we're recession retail Service. and to think piece with that looming, It it future. we're really but to innovation that, sector business, of be all today. In are we volume the something of retail, in of growth licensing side bring things that excited careful we seeing lot working about is It on Food the with allow doing that for company the regards we to of about one to that our that and the business

included detailed a financials you you kind kind said, used proxy, our kind performing quarter the benchmark, that that our Dippin' Yeah. Dots three independent of million of are as to for sales Connor, as math, And grew three above the XXXX. sales Dots just look grew business Food add Dippin' another is and and idea Dippin' we add, Dots the $XX.X XXXX well kind but of excluding gives out versus XX% to the we've general as pre-COVID and segments the within Food at of All business Dippin' in the Novelties Dan in you just XX.X% what benefit Dots from adding of so can it to Dots. called grew Service even back segments included Dippin' adding adding into of Service. all all really ex of Frozen

parks? consumers discretionary while that guess then [indiscernible] reporters Service business That's more or seem certain have Food evidence on some just spending really amusement in me, back helpful theaters one traffic for any quite I and of for seen maybe it we strong. dialing a movie remain really essential, maybe you guys. so maybe considered to venues, guys, things And versus slowdown season like you I this mean, foot more in are Okay, great. the

to date, We're it our with continue to see watching start see over to XXXX and we'll as seen it. we We've we're we that Connor. that year evidence and if well, but of fortunate that we'll volume the eye along pricing really close, been to To on some that. also enough keeping not watch react have growth

right. All

guys. great. Sounds Thanks,

you. Thank

Thank moment you. One for questions.

Our with next question from comes Dickerson Robert may Jefferies, proceed. you

so Thanks much. Great.

Just a guess you Ken. maybe couple of it's quick for questions. I for fiscal more XXXX,

more relative consistency we QX that, pretty did you back if had around margin you QX stated get in it's think maybe what to QX. to and similar nice is trying profitability to QX, seeing about frankly, to I what previously you're obviously, think we're QX, pre-pandemic probably in hopefully,

realize into terms the of system, kind fair healthy amount there just far, progression in potential pricing profitability? I of of of is So but update any that seems cost so coming

Hey, where company, Ken, a and there. from will getting and we feel Rob, Appreciate fantastic thanks day a spot. that out I'm flavor our about difficult getting some it. to I our around We've going but to I continuing [indiscernible] Ken in to day answer good a of we're what was back with the about teams looking J&J's do did hard, getting for We little just start to hello, initiatives, to anyhow. job just that. something that I'll that's let want We're give out needed margins. but back XX% the work in in to talked fight cost this, sales normal because taken really some preach forward let say of plus, calling rate run to pricing environment in. that

confident, Yeah. We remain really Rob.

go everything but have and I kind sort next terms to just in information hesitation kind next with that the of of best in potential on with XX where if says that consumers us given a months. I of the feed we expect thing, think the be of of recession, I all little

'XX add getting our kind continue and as QX as gross quarter margin of closer, historical as what to and is those We to to performance where And onto back to back that, you it's still settled on gross rate. QX our and gross really start remain accretive positive Dots into get been margins hit kind we we're We more mentioned of in then probably much margins. really we said, has this well. spot that's sweet Dippin'

really, really So feeling look we here as sit good forward. we

Dan business. it's We're are strategies, aggressively both mentioned focused very after the still line, the chain on going our top we've clear, in aligned on think then supply I it, bottom about initiatives. the making progress across and think cost, really good outlook feel we I We the line got so XXXX. we're

fair math, kind kind and the Dots on that being little of upfront kind least of contribution same while the profit Dippin' for is costs, that maybe And at like right, around high Dots through from as segment a in profit distribution enough. some I'm time time if is there of looks and segment expense fairly is Dippin' assuming guess I then profitability distribution obviously, the it guess QX, I the still pressured see quick question year-over-year. their then total, All revenues bit we still on that then also, come a a at well, I obviously do side

Service. high, little Dots, on profitability attractive some we XXXX, contribution business. coming more bit obviously up. goes guess Dippin' specifically what's It as the from Dots are I'm Food in as distribution to still so still to to I in very were So quarter ease a costs and then there's of maybe seems Dippin' through got going just kind sense that like trying get

is upfront segment that if would if anything able and just Dippin' of sense, ease it. that out kind guess that kind Dots So to I that vis-a-vis some costs of in be cause there might that's come wondering if makes Thanks. later

expenses, Yeah, were sales down let in they as about a they what rate me distribution QX. marginally just versus talk of were

it stabilization. little ago. was in down up it over little of the a quarter remind it's what was wasn't was I are there significantly everybody, It We just significant, year bit same seeing a bit. but -- still

you ignoring prices about that are million look so at we If straight up rate impact, XX%. more, just it's [indiscernible] fuel $X still shipped up

in outlook terms They mind, feel bouncing how keep you when at feel year-to-year, good the bit have than XX we better of six are just kind look actually do months of gone it little bit around. last the in about things in did XX days, reacting that say ago. but to we kind fuel up of So a we about three, little prices

also initiatives some expect on about that, we've in of gain we've place. like ground lot traction to to a got We're we starting NFI, We logistics talked moved that. our all get there. We've to so management the

that, So has a to better get in big still the we expect but quarter impact. for pretty year-over-year

fuel year, it at $XX distribution you thing, gives that up, in because you million same that the full probably were up wages look a pay were you sort magnitude. volume expenses on $XX rates of to more prices so carrier little If million of bit up, just were

good sales heavier carries that a about are XXXX. but profitability of QX performance that going we're QX as for we of had much as in Dots, some than out on will and P&L year Dots our in and terms In so profit the impact of sales be won't get weighting in quarter. that that forward that's Dots wouldn't QX, you and to quarter, Dippin' this Obviously, as did we impact total so see in are mean seasonal so much be say Dots SG&A bigger back on we where expenses then, Dots any the bit, going help a QX, business. is I a see QX quarter. core feel going be, but really littler why to slowest big where the I of really really, our into the pronounced Dippin' as half and the play for quarters rate the to a their Dippin' It's you'll of larger particularly of Dippin' quarter look And Dippin'

have some three centers you what see had in a where long-term. seasonal customer I availability it box the also of and Dippin' and Dots across to of we'll and lower able the like in each to closer with cost customer as their about a might be those Yeah. our then increase is, and place we we store think that much and we've box, get sales one DC talked distribution strategies the Rob, country, to

All right.

Just just Dots, QX a quick Thanks. That’s can kind we just that can on revenues you of those broad seasonality were those understand in give piece? maybe follow-up and remind just a sorry. of so percentage base of us kind Dippin' then what it, period, that QX -- sales QX, the in

Yeah, well it's QX. $XX.X in million

If then sales, flow at of and seasonality is kind sales is XX%, QX Dippin' the XX%, is QX, you XX% is of Dots. of Dippin' look XX% around QX, around Dots so the of QX seasonality that's

guys. All Appreciate right, it. so thank much, you

you, Rob. Thank

Thanks, Rob.

Thank questions. One for you. moment

comes Our Benchmark next from question Todd Brooks Company, The may with proceed. you

morning, on nice good congrats quarter. guys, a Hey,

Todd, you, good morning. Thank

you the the I what know magnitude over months, may, about review, the I'm we second the segment by that if we can we're already XX talked XX I of questions talking increase, over quick was? and pricing third rolled increased of three can past first couple A if discrete we've actions timing review and the assuming

taken in range. have September in then that March, tell increase I mean, the to increase segment, of the I it to X% you was and don't X% April was range I Todd, in by X% the -- in X% in it that most that can

X% was X%. the it around late year The was to and prior increase third

Okay, [Multiple great. I And Speakers] the is Go ahead. believe I see timing

Sorry.

our were Those numbers, numbers. J&J service food yeah,

annually, this Okay. and we And have see year then this what I think indications January, typically, upcoming any do in did early as I we for so run year?

the done looking year normally it around January, we see, increase a I this in are is and beginning increase X% January. coming was another of Yeah, it at

for determined not in not yet, that amount range. surprise be have me it would same it to that We

of of for the feel how look now, pressure with recaptured And cost and you've pricing the Okay. Ken, do structure kind the taking if your the understand, to much market? what's price at for environment in I want you pricing current just like like your you

talking we good they we a really lock good to good pretty at of rates mean, about in, work this of really well that's idea business again, guys we're like, we -- as with the as next between pretty like look do some quarter we've procurement should Yeah, that question. things feel then, done We're look initiatives locking many every to We going to the here. to on side think said our to They us I as to snack-food we at continue now. and costs the forward. our calibrated other feel really we've do do so try weight. And I'm trying well. price the a and job, I lot when earning good down in have get cost a own in quarters, a look also we SKU

out lot at monthly that as get resilient have sit more we'll to regroup we there. we Obviously, changes any of into accepting increases, to watch take much plays there there's but how and SKUs a very on are the to price and that look news to side starting looking of action major whether market on down all environment get as now that retailers is have our as I here that consideration, forward, and we speak. there's weekly, dragging about the snack-food if as are have are changes that so it take closely folks So and we decide but increase to price we'll us I good no that planned position, well, analysis we new got feel then

pricing tougher and the at gets Todd, this to environment I think take point. tougher

normally think annually. it's side I on acceptable done it's the because beverage

business We're of understanding and our of time. at what piece watching are commodities other then the same think the watching doing I tougher kind it tougher. what closely, others gets are doing, and

follow-up kind in switching about that of want And around Dan. fiscal opportunity gears, Okay, talk distribution my costs to great. question, Thanks, I XXXX.

incremental from fully kind when when, about three to talked facilities, about of getting Dan, Dippin' you talked million $XX in in million you You that having Logistics distribution to about improvement controllable were of wondering outsourced Ken, back? about we you inflation, can system of centralized claw you guys Dots Management do from distribution year and you $XX much rationalizing kind I'm that this when see talked talking NFI, how think the costs XXXX,

to line spoke answer went for of now the NFI question, buck now the the with our Edwards biggest over particularly quarters, they help start range here's few as bang end strategy pretty this that managing XXX% the the along as they guys opportunity is to Yeah, answer us bit we through them, mileage with to $X longer-term. that, implemented there truckload, of do is everything In about playing that, we JD RDC probably in mean, more the little we of that manage over to really that we've The sort is, implementation, you we is million thing. Todd, better out when managing for that. transportation $X gradually expect we move I last and year, of went how million and a of an

the Coast we later. need things around want wouldn't operate the expect about the say, we drive facilities we opportunity we the in One other really in what roughly those I May-June three And we're to on then, tandem the timeframe, still do West so month side, discussions to the -- see. of a in savings

more like So on 'XX part that way into and 'XX of probably it. that's working its

you that fully are you what once think have running? the once opportunity, is tandem in working up that system is three and all And do great. Okay, sized

a think plus we said, Todd. opportunity, $XX million it's we've think I Yeah,

Okay, perfect. Thanks, Ken.

questions. for you. Thank moment One

Our Wolf proceed. next from you King, CL comes question may with Andrew

Hello, good morning.

Andrew. morning, Good

$X stuff [Multiple that control, you all what that of million in fuel -- million. year I of I next of -- called kind carrier wages was to $XX if for can't well, On can distribution, that or and more was contract the forward there your $XX outlook at done heard for -- know second tie wages that market? out -- out listen importantly, is you I think identified because it's and that rate, could guys and but you was any million Speakers] sorry, year, right I the the you up, is

big go we three still as to we cost four Yeah, were year up at to market-driven. prices down, ago XX%. per to to shipped fuel even they're or down, is is our pound and look relative It's so ago now, see, that partner it NFI starting months see pretty ingredients a much relative the

them to outlook the year. better around out worse, get gets and expect had opportunity better. byproduct carriers was think prices. we that little increases had that to this that supply expect don't to side bit degree the their There cost A of was is and we of The and a they demand that lot and pay supply equal enables as charge I in little is think labor. huge the a a where of I don't that storage that demand bit. We

a last don't stable expect So it's forward -- go happened year. I unless that expect a the get fuel coming of it repeat also we I what again, have think down, pretty benefit all environment, huge to but looking number I we sudden don't of a down to prices a of

been down, over some an Andrew, from on focused of think that also on, get benefits continue We're we the opportunity. that and to We the we coming we'll that so our side in some this can on people NFI to drive think a look big it's little help see color a year, business. additional distribution next whole We've help. us brought of as that at that. just it. really

Okay.

saying, Speakers] process addition, So you're that the just through and Dan, outsourcing in is [Multiple there what savings whatever

all Speakers] [Multiple day that every think yet, every doing the sure it indications things that don't better all believe that the I just and amount to down. try better getting at our but getting know and into we we're we're we're translate right will getting, we're information drive day some think savings, of data that to I that Yeah,

Okay, thanks, that's great.

to or into on relationships. think Moving or it Food better broader I versus either internally where temperature up Dots, in that of distribution Dippin' mean, you further what retail expansion is the some you I launching accounts, Service have the brought

be think Dippin' and categories some start, relationships our have a but package out ahead expect the solid that the on the the an to to we release the and in good At will or encouraged past, thought out we're with you'll the side. customers see months time, didn't three from Food in Food potential believe to a of over where we've I I retail first meetings we expansion some Yeah, I we're be happen form Service able that really to having would of as some same there. introducing that Service would next able with the Dots been and that of that working they We group months. the be really to opportunity the retail, might we really placements good operate team customers get and R&D six have our be

price of of two are the that and just seen by sort Got commentary elasticity you. you Service segments? elasticity that's you're for is at wondering the on side And I'm or reasons, to that companies retail from little than stands more with seeing I've on a increases, me. last a the if experience there around the on it question -- Thank reason bunch least it. seeing other it the That's Food

customers that's our done I believe this that. to easy volume on the all good there know in to in pass job see really have job between and for, best retail of volume. difference we closely. difficult an it harder. to actually I past environments that I that customers. retail anything side careful that hurt team we're Service, watching I think don't so we've being even done watching think our In excellent and done environments a at and our that get think not seen both impacting it, We to Service and but it, really circumstance Yeah, and year are really Food tough We don't pricing closely indications elasticity out gets that any We're date, a haven't has a Food

for appreciate it. Got color, the it. I Thanks

Thank you, Andrew.

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