Westerville, OH — – The Marzetti Company (Nasdaq: MZTI) reported results for the company’s fiscal first quarter ended September 30, 2025.

Summary
• 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.”

First Quarter Results
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 milli on, or $0.03 per diluted share.