| Metric | Value ($ M) | Q1 FY26 |
|---|---|---|
| Revenue | 481.52 | 2.4% |
| Total Income | 481.52 | 2.4% |
| Expenditure | 440.08 | 1.4% |
| PBT | 38.78 | 36.2% |
| Net Profit | 29.30 | 37.9% |
| OPM | 8.61% | 3.40pp |
| NPM | 6.08% | 3.48pp |
| EPS | 1.08 | 36.8% |
The Marzetti Company Reports First Quarter Sales and Earnings
03 Nov 2026 · 3 Nov, 6:43 pm
Summary
The Marzetti Company reported a 2.4% decline in first quarter net sales to $481.5 million, primarily impacted by a cyclospora outbreak affecting both Retail and Foodservice segments. Despite the sales decrease and a 110 basis point reduction in gross profit margin to 23.0%, the Retail segment saw a 2.0% increase in net sales, boosted by the acquisition of Bachan's. Management noted that the cyclospora outbreak significantly impacted top and bottom-line results but has moderated, and they anticipate continued benefits from the Bachan's acquisition and new product launches in the upcoming quarters.
Key Highlights
- 1
Consolidated first quarter net sales declined 2.4% to $481.5 million, or 0.3% excluding prior-year non-core sales.
- 2
Retail segment net sales increased 2.0% to $252.7 million, including $17.8 million from the newly acquired Bachan’s brand.
- 3
Foodservice segment net sales decreased 6.9% to $228.8 million on a reported basis.
- 4
Consolidated gross profit declined $8.0 million to $110.8 million, with gross profit margin decreasing 110 basis points to 23.0%.
- 5
First quarter net income was $1.07 per diluted share, compared to $1.71 per diluted share in the prior year.
- 6
The company anticipates Retail segment sales will continue to benefit from the Bachan’s acquisition and new product introductions.
Management Comments
David A. Ciesinski
The cyclospora outbreak had a significant impact on this quarter’s top and bottom-line results. The outbreak resulted in lower sales for both our Retail and Foodservice segments, with the impact on Retail segment net sales more notable, accounting for an estimated year-over-year net sales decline of approximately 4% due to lower demand for our Retail dressing, dip and crouton products. On a positive note, other areas of our business continued to perform well and the cyclospora impact has moderated in recent weeks. The newly acquired Bachan’s brand added $17.8 million in incremental sales to our Retail segment. Retail scanner data sourced from Circana for the quarter ended September shows continued momentum for the Bachan’s brand, with sales up 10.7% as the brand continues to gain share in the barbecue sauce category. Consumer demand for our Texas Roadhouse® dinner rolls also remained strong, with sales up 21.3% per Circana. In the Foodservice segment, with the cyclospora outbreak a headwind to growth, the segment’s reported net sales declined 6.9% and Adjusted Foodservice Net Sales, which exclude the non-core TSA sales, decreased 2.6%. The decrease in consolidated operating income was driven by the lower sales and associated impact of lower production volumes on our plant operations; significantly higher diesel and freight costs; and commissioning costs for the addition of new production capacity at our sauce and dressing facility in Atlanta, Georgia. Looking ahead to our fiscal second quarter and the remainder of the fiscal year, we anticipate Retail segment sales will continue to benefit from incremental sales attributed to the Bachan’s acquisition in addition to contributions from new items that we recently launched or have planned for introduction later this year. In the Foodservice segment, we expect sales to remain supported by select quick-service restaurant customers in our mix of national chain restaurant accounts. We continue to anticipate a moderate level of commodity cost inflation, in addition to significantly higher diesel and freight costs, most or all of which we expect to mitigate through inflationary pricing and our cost savings programs as we remain focused on margin improvement.
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