The Marzetti Company (NASDAQ: MZTI) on Tuesday reported fourth-quarter adjusted earnings per share of $1.46, exceeding the $1.40 consensus estimate from analysts. Net income rose to $1.76 per diluted share from $1.18 in the prior-year quarter.
Revenue for the quarter declined 2.2% year-over-year to $465 million, missing the $478.95 million consensus forecast. Excluding a temporary supply agreement that concluded in the third quarter, consolidated net sales increased 0.4%.
The company’s retail segment, which includes the newly acquired Bachan’s brand, reported net sales of $243.6 million, up 0.9% from the prior year. The foodservice segment posted net sales of $221.4 million, a 5.3% decline.
Gross profit reached a record $114 million in the quarter, lifting the gross margin by 220 basis points to 24.5%, driven by ongoing cost savings initiatives. The company recognized an $18.5 million gain from the sale of its Milpitas, California property, which added $0.66 to net income per diluted share, partially offset by $10.5 million in acquisition-related costs that reduced net income by $0.31 per share.
Shares of Marzetti were down 0.66% in pre-market trading following the results. CEO David A. Ciesinski highlighted the record gross profit and margin improvement, noting that the Bachan’s acquisition contributed $15.4 million in incremental sales to the retail segment. The company expects retail sales to benefit from the acquisition and new product launches in fiscal 2027, while foodservice sales are projected to stabilize with support from select quick-service restaurant customers.
