Marzetti : Q3 Quarterly Financial Results (MZTI FY26Q3 EarningsPres)
MZTI
Published on 05/04/2026 at 07:45 am EDT
Fiscal Period Ended March 31, 2026
May 4, 2026
Core Business Performance: The impact of higher SG&A investments, partially offset by the increase in Gross Profit
Other Items: The unfavorable impact of a $1.8 million net increase in acquisition-related SG&A costs, partially offset by the benefit of $0.8 million in insurance claim proceeds related to a previously recognized impairment charge
Retail segment Net Sales declined 3.2% to $233.8 million, while volume (measured in pounds shipped) declined 5.6%
New York Bakery garlic bread products continued their trajectory of sustained growth
Sister Schubert's dinner rolls benefited from the pull-forward of demand due to the earlier Easter holiday
y
Category
Brand
$ Sales and Share Highlights
Frozen Garlic Bread
New York Baker
New York Bakery grew sales 4.4%, resulting in a category-leading market share of 46.7%
Frozen Dinner Rolls
Texas Roadhouse® Sister Schubert's®
Texas Roadhouse and Sister Schubert's combined to grow 10.1%, resulting in a category-leading market share of 61.0%
Source: Circana
Time period: 13 weeks ending 3/29/26
Foodservice segment Net Sales grew 1.5% to $219.6 million
Note: The TSA commenced in March 2025 and concluded during the quarter ended March 31, 2026
*See Appendix page A-1 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures
($ in millions)
(1.2)%
0.3%
(0.1%)
(1.0)%
Core (0.9)%
*
Values may not foot due to rounding
* Incremental Foodservice sales associated with the Winland Foods TSA
Reported Gross Margin increased to 23.6%, while Adjusted Gross Margin* improved to 23.7%, driven by:
- Ongoing cost savings programs
- Inflationary pricing offset cost inflation
*See Appendix page A-1 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures
Operating Income declined $3.3 million to $46.6 million, due to:
Core Business Performance
Other Items
($ in millions)
Other Items
EPS (diluted) declined $0.14 to $1.35
Core Business Performance
Other Items
Other Items
$173 million in the prior-year period
Accelerate core business growth
Simplify our supply chain to reduce costs and grow margins
Expand our core with focused M&A and strategic licensing
Three Months Ended March 31, 2026 Three Months Ended March 31, 2025
(Unaudited, Dollars in Thousands)
Reported
TSA-Related
Adjusted
(non-GAAP)
Reported
TSA-Related
Adjusted
(non-GAAP)
Consolidated
Net Sales
$ 453,368
$ 1,539
$ 451,829
$ 457,836
$ 2,063
$ 455,773
Cost of Sales
$ 346,152
$ 1,539
$ 344,613
$ 351,874
$ 2,063
$ 349,811
Gross Profit
$ 107,216
$ -
$ 107,216
$ 105,962
$ -
$ 105,962
Gross Margin
23.6%
0.0%
23.7%
23.1%
0.0%
23.2%
Foodservice
Foodservice Net Sales
$ 219,597
$ 1,539
$ 218,058
$ 216,304
$ 2,063
$ 214,241
Note: 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 concluded during the quarter ended March 31, 2026. The table above 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 March 31, 2026 and 2025.
Three Months Ended March 31
(Unaudited, Dollars in Thousands)
2026
2025
Change
Reported Operating Income
$ 46,577
$ 49,877
$ (3,300)
-6.6%
SG&A Expenses - Acquisition Costs
$ 3,535
$ 1,710
$ 1,825
106.7%
Restructuring, Impairment and Other, Net
$ (800)
$ -
$ (800)
N/M
Adjusted Operating Income (non-GAAP)
$ 49,312
$ 51,587
$ (2,275)
-4.4%
Note: 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 adjustments in the reconciliation above reflect a recovery of
$0.8 million through an insurance claim related to the previously recognized impairment charge and acquisition related SG&A expenses attributed to Bachan's in the current year and the Atlanta production facility in the prior year. The table above presents a reconciliation between operating income as reported in accordance with GAAP and Adjusted Operating Income for the three months ended March 31, 2026 and 2025.
Disclaimer
The Marzetti Company published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 11:44 UTC.