The Marzetti Company Reports First Quarter Sales and Earnings
Marzetti's fiscal Q1 net sales declined 2.4% to $481.5 million, with adjusted net sales (excluding $10.7 million of prior-year TSA sales) down just 0.3%. The cyclospora outbreak was the dominant headwind, cutting an estimated 4% from Retail and 2% from Foodservice segment sales; gross margin compressed 110 basis points to 23.0% on lower volumes, higher diesel/freight costs, and Atlanta capacity commissioning costs. Diluted EPS fell to $1.07 from $1.71, and Adjusted Diluted EPS dropped to $1.14 from $1.74; operating income declined 30% to $41.4 million.
Key figures
- Eps
- 1.07
- Revenue
- 481522000
- Guidance
- No formal guidance; management expects continued Bachan's contribution to Retail, QSR-supported Foodservice, moderate commodity inflation plus significantly higher diesel/freight costs mitigated through pricing and cost savings programs
- Revenue Yoy
- -2.4%
- Term loan
- 200000000
- Net income
- 29300000
- Gross margin
- 23.0%
- Gross profit
- 110774000
- Interest expense
- 2797000
- Retail sales yoy
- 2.0%
- Dividend per share
- 1
- Adjusted diluted eps
- 1.14
- Retail segment sales
- 252721000
- Foodservice sales yoy
- -6.9%
- Adjusted operating income
- 43853000
- Bachans incremental sales
- 17800000
- Foodservice segment sales
- 228801000
- Cyclospora retail sales impact
- ~4% YoY decline
- Adjusted diluted eps prior year
- 1.74
- Adjusted consolidated net sales yoy
- -0.3%
- Cyclospora foodservice sales impact
- ~2% YoY decline
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