The Marzetti Company (Nasdaq: MZTI) reported financial results for its fiscal first quarter ended September 30, 2026, in an 8-K filing dated November 3, 2026. The company announced consolidated net sales of $481.5 million for the quarter, a decrease of 2.4% compared to the prior year.
Segment performance showed mixed results. The Retail segment saw net sales increase 2.0% to $252.7 million. This growth was attributed to the newly acquired Bachan’s, Inc., a Japanese Barbecue Sauce brand, which contributed $17.8 million in incremental sales. However, the Foodservice segment reported a 6.9% decline in net sales to $228.8 million. Both segments were negatively impacted by a cyclospora outbreak, which management estimated reduced Retail sales by approximately 4% and Foodservice sales by approximately 2%.
On the cost side, consolidated gross profit declined to $110.8 million, a decrease of $8.0 million, driven by lower sales volumes, higher diesel and freight costs, and commissioning expenses for a new production facility in Atlanta, Georgia. Selling, general, and administrative (SG&A) expenses increased $10.9 million to $69.3 million, largely due to costs associated with the Bachan’s acquisition and noncash amortization expenses for intangible assets.
As a result, consolidated operating income decreased $17.8 million to $41.4 million. The company reported net income of $29.3 million, or $1.07 per diluted share, compared to $47.2 million, or $1.71 per diluted share, in the prior year. Excluding the impact of the Bachan’s amortization and prior-year restructuring charges, Adjusted Diluted EPS was $1.14 for the current quarter.
