The Marzetti Company reported a decline in first quarter results as a significant foodborne illness outbreak and elevated logistics costs pressured the bottom line, despite inorganic growth from recent acquisitions.
Key Highlights
- Consolidated net sales fell 2.4% to $481.5 million, missing the analyst consensus of $502 million.
- The Cyclospora outbreak reduced Retail segment net sales by an estimated 4% and Foodservice segment sales by approximately 2%.
- Adjusted Diluted EPS of $1.14 missed the expected $1.37, driven by a 110 basis point contraction in gross margin to 23.0%.
- The newly acquired Bachan’s brand contributed $17.8 million in incremental sales, providing 360 basis points of consolidated growth.