WESTERVILLE, Ohio, November 4 - The Marzetti Company (Nasdaq: MZTI) reported results today for the company’s fiscal first quarter ended September 30, 2025.

•Consolidated first quarter reported net sales increased 5.8% to a first quarter record $493.5 million. Excluding $10.7 million in non-core sales attributed to a temporary supply agreement (“TSA”) with Winland Foods, Inc., Adjusted Consolidated Net Sales increased 3.5% to $482.8 million. Retail segment net sales increased 3.5% to $247.8 million. Foodservice segment net sales grew 8.2% to $245.6 million on a reported basis. Excluding the non-core TSA sales, Adjusted Foodservice Net Sales increased 3.5% to $234.9 million.

•Consolidated gross profit increased $8.0 million or 7.2% to a first quarter record $118.8 million with reported gross margin up 30 basis points. Adjusted Gross Margin, which excludes the $10.7 million in non-core TSA sales that did not contribute to gross profit, improved 80 basis points to 24.6% driven by our ongoing cost savings programs and higher sales volumes.

•SG&A expenses increased $3.5 million to $58.4 million, driven by increased investments to support the continued growth of our brands.

•Consolidated operating income increased $3.4 million to a first quarter record $59.3 million. Excluding restructuring and impairment charges of $1.1 million, Adjusted Operating Income increased $4.5 million or 8.1% to $60.4 million. The increase in Adjusted Operating Income reflects the higher gross profit partially offset by the increase in SG&A expenses. The restructuring and impairment charges are attributed to our previously announced closure of our sauce and dressing facility in Milpitas, California.

•First quarter net income was $1.71 per diluted share versus $1.62 per diluted share last year. Restructuring and impairment charges reduced this year’s first quarter net income by $0.03 per diluted share.

CEO David A. Ciesinski commented, “We were pleased to report record sales, gross profit and operating income for our fiscal first quarter. In the Retail segment, sales growth of 3.5% was led by our category-leading New York Bakery™ frozen garlic bread products, including notable contributions from the delicious gluten-free Texas Toast that we launched last fall. Volume gains for our successful licensing program also added to the increase in Retail segment sales driven by Chick-fil-A® sauces, Olive Garden® dressings, and Buffalo Wild Wings® sauces. In the Foodservice segment, reported net sales increased 8.2% with Adjusted Foodservice Net Sales growth of 3.5% led by higher demand from several of our core national chain restaurant accounts in addition to inflationary pricing.”

“Looking ahead to our fiscal second quarter and the remainder of our fiscal year, we anticipate Retail segment sales will continue to benefit from the growth of our licensing program and contributions from our own brands. In the Foodservice segment, we expect sales to remain supported by select quick-service restaurant customers in our mix of national chain restaurant accounts.”

Consolidated net sales increased 5.8% to a first quarter record $493.5 million versus $466.6 million last year. Excluding $10.7 million in non-core sales attributed to the TSA with Winland Foods, Inc., Adjusted Consolidated Net Sales increased 3.5% to $482.8 million. Retail segment net sales grew 3.5% to $247.8 million while the segment’s sales volume, measured in pounds shipped, increased 3.2%. The $10.7 million in non-core TSA sales are accounted for as Foodservice segment sales and result from our acquisition of the Winland Foods sauce and dressing production facility located in Atlanta, Georgia. The TSA sales commenced in March 2025 and are expected to conclude during the quarter ending March 31, 2026. Excluding the non-core TSA sales, Adjusted Foodservice Net sales improved 3.5% to $234.9 million while the segment’s sales volumes, measured in pounds shipped, improved 0.5% as inflationary pricing and a more favorable sales mix contributed to the segment’s net sales growth.

Consolidated gross profit increased $8.0 million to a first quarter record $118.8 million driven by our cost savings programs and higher sales volumes. Adjusted Gross Margin increased 80 basis points to 24.6%.

SG&A expenses increased $3.5 million to $58.4 million, driven by higher marketing costs as we invested to support the continued growth of our Retail brands. SG&A expenses also reflect increased investments in personnel.

Restructuring and impairment charges of $1.1 million are attributed to the closure of our sauce and dressing facility in Milpitas, California as part of our ongoing initiative to better optimize our manufacturing network. Production at the facility concluded during the quarter ending September 30, 2025, as planned.

Consolidated operating income increased $3.4 million to $59.3 million. Excluding the restructuring and impairment charges of $1.1 million, Adjusted Operating Income increased $4.5 million or 8.1% to $60.4 million. The increase in Adjusted Operating Income reflects the higher gross profit partially offset by the increase in SG&A expenses.

Net income increased $2.5 million to $47.2 million, or $1.71 per diluted share, versus $44.7 million, or $1.62 per diluted share, last year. The restructuring and impairment charges reduced current-year quarter net income by $0.9 million, or $0.03 per diluted share.

The company’s first quarter conference call is scheduled for this morning, November 4, at 10:00 a.m. ET. Access to a live webcast and subsequent replay of the call is available through a link on the company’s website at investors.marzetticompany.com.

The Marzetti Company is a manufacturer and marketer of specialty food products for the retail and foodservice channels.

•efficiencies in plant operations and our overall supply chain network;

•price and product competition;

•the success and cost of new product development efforts;

•the lack of market acceptance of new products;

•changes in demand for our products, which may result from changes in consumer behavior or loss of brand reputation or customer goodwill;

•the impact of customer store brands on our branded retail volumes;

•the impact of any laws and regulatory matters affecting our food business, including any additional requirements imposed by the FDA or any state or local government;

•the extent to which good-fitting business acquisitions are identified, acceptably integrated, and achieve operational and financial performance objectives;

•inflationary pressures resulting in higher input costs;

•fluctuations in the cost and availability of ingredients and packaging;

•adverse changes in freight, energy or other costs of producing, distributing or transporting our products;

•the reaction of customers or consumers to pricing actions we take to offset inflationary costs;

•adverse changes in trade policies, including increased tariffs, retaliatory trade measures, or other trade restrictions;

•dependence on key personnel and changes in key personnel;

•adequate supply of labor for our manufacturing facilities;

•stability of labor relations;

•geopolitical events that could create unforeseen business disruptions and impact the cost or availability of raw materials and energy;

•dependence on a wide array of critical third parties to support our operations, including contract manufacturers, distributors, logistics providers and IT vendors;

•cyber-security incidents, information technology disruptions, and data breaches;

•the potential for loss of larger programs or key customer relationships;

•capacity constraints that may affect our ability to meet demand or may increase our costs;

•failure to maintain or renew license agreements;

•the possible occurrence of product recalls or other defective or mislabeled product costs;

•the effect of consolidation of customers within key market channels;

•maintenance of competitive position with respect to other manufacturers;

•the outcome of any litigation or arbitration;

•significant shifts in consumer demand and disruptions to our employees, communities, customers, supply chains, production planning, operations, and production processes resulting from the impacts of epidemics, pandemics or similar widespread public health concerns and disease outbreaks;

•changes in estimates in critical accounting judgments; and

•risks related to other factors described under “Risk Factors” in other reports and statements filed by us with the Securities and Exchange Commission, including without limitation our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q (available at www.sec.gov).

(Unaudited, In thousands except per-share amounts)

(a)        Based on the weighted average number of shares outstanding during each period.

(Unaudited, In thousands)

									Three Months Ended  September 30,
															2025						2024
Net Sales
Retail															$	247,845					$	239,571
Foodservice															245,627						226,987
Total Net Sales															$	493,472					$	466,558
Operating Income
Retail															$	50,611					$	56,175
Foodservice															34,768						24,309
Nonallocated Restructuring and Impairment Charges															(1,143)						—
Corporate Expenses															(24,976)						(24,620)
Total Operating Income															$	59,260					$	55,864

(Unaudited, In thousands)

			September 30, 2025						June 30, 2025
Assets
Current assets:
Cash and equivalents			$	182,151					$	161,476
Receivables			101,803						95,817
Inventories			174,034						169,301
Other current assets			41,344						17,037
Total current assets			499,332						443,631
Net property, plant and equipment			541,849						534,543
Other assets			297,283						296,550
Total assets			$	1,338,464					$	1,274,724

The Marzetti Company prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). However, from time to time, the corporation may present in its public statements, press releases and SEC filings, non-GAAP financial measures such as Adjusted Consolidated Net Sales, Adjusted Foodservice Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit, Adjusted Gross Margin and Adjusted Operating Income. Management considers such non-GAAP financial measures to provide useful supplemental information to investors in facilitating year-over-year comparisons by removing non-recurring items or other items that management believes do not directly reflect the underlying operations. Management uses these non-GAAP measures in the preparation of our annual operating plan and for our monthly analysis of operating results. Reconciliations of the non-GAAP measures to the most comparable GAAP financial measures are provided below. The corporation’s definitions of these non-GAAP measures may differ from similarly titled measures used by other companies. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

Adjusted Consolidated Net Sales, Adjusted Foodservice Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit and Adjusted Gross Margin are non-GAAP financial measures that exclude non-core sales and cost of sales attributed to a temporary supply agreement (“TSA”) made in connection with our February 2025 acquisition of Winland’s Atlanta-based sauce and dressing production facility. The TSA sales are included in the reported net sales for our Foodservice segment and did not contribute meaningfully to gross profit. The TSA sales commenced in March 2025 and are expected to conclude during the quarter ending March 31, 2026. The following table presents a reconciliation between net sales, cost of sales, gross profit and gross margin as reported in accordance with GAAP and Adjusted Consolidated Net Sales, Adjusted Foodservice Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit and Adjusted Gross Margin for the three months ended September 30, 2025.

Adjusted Operating Income is a non-GAAP financial measure that excludes certain items affecting comparability, which can impact the analysis of our underlying core business performance and trends. The adjustment in the reconciliation below reflects restructuring and impairment charges related to the closure of our sauce and dressing production facility in Milpitas, California. The following table presents a reconciliation between operating income as reported in accordance with GAAP and Adjusted Operating Income for the three months ended September 30, 2025 and 2024.