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FY26 Q4 Earnings PresentationFiscal Period Ended June 30, 2026August 25, 2026
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This presentation was prepared by The Marzetti Company for information purposes only and is not an offer or solicitation with respect to the purchase or sale of Company securities. We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Any statements concerning the Company’s future performance included in this presentation or made orally to the recipients of this presentation are “forward–looking statements” within the meaning of the PSLRA and other applicable securities laws. Such statements can be identified by the use of the forward-looking words “anticipate,”“estimate,” “project,” “believe,” “intend,” “plan,” “expect,” “hope” or similar words. These statements discuss future expectations; contain projections regarding future developments, operations or financial conditions; or state other forward-looking information. Such statements are based upon assumptions and assessments made by us in light of our experience and perception of historicaltrends, current conditions, expected future developments and other factors we believe to be appropriate. These forward-looking statements involve various important risks, uncertainties and other factors that could cause our actual results to differ materially from those expressed in the forward-looking statements. Actual results may differ as a result of factors over which we have no, or limited, control. Management believes these forward-looking statements to be reasonable; however, you should not place undue reliance on such statements that are based on current expectations. For example, fluctuations in the market price of material or freight costs or general economic conditions for domestic consumers, over which we have no control, may significantly influence our financial results. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to updatesuch forward-looking statements. More detailed statements regarding significant events that could affect our financial results are included in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission and available at investors.marzetticompany.com Safe Harbor Statement 2 Information Regarding non-GAAP Financial MeasuresThe Marzetti Company prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). However, from time to time, we may present in our public statements, press releases and SEC filings, non-GAAP financial measures such as Adjusted Consolidated Net Sales, Adjusted Foodservice Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, and Adjusted Net Income Per Diluted Share (“Adjusted Diluted EPS”).Management considers such non-GAAP financial measures to provide useful supplemental information to investors in facilitating year-over-year comparisons by removing non-recurring items or other items that management believes do not directly reflect the underlying operations. Management uses these non-GAAP measures in the preparation of our annual operating plan and for our monthly analysis of operating results. Reconciliations of the non-GAAP measures to the most comparable GAAP financial measures are included in this presentation. Our definitions of these non-GAAP measures may differ from similarly titled measures used by other companies. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.
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HighlightsFY26 Q4 Reported consolidated net sales declined 2.2% to $465.0 million•Adjusted Consolidated Net Sales* increased 0.4%, driven by the addition of Bachan’s to our portfolio •Bachan’s added $15.4 million in net sales, or about 320 basis points of growth The company achieved record fourth quarter gross profit of $114.0 million, with reported gross margin up 220 basis points, driven by our ongoing cost savings programs. Twelfth consecutive quarter of Adjusted Gross Margin expansion Operating income grew $18.8 million, a fourth quarter record, to $57.7 million:•Core Business Performance: Drove $7.8 million of operating income growth primary driven by the gross profit increase•Other Items: Other items contributed a net $11.0 million increase to operating income, reflecting the impact of various factors•SG&A includes acquisition-related costs of $11.0 million and noncash amortization expense of $1.6 million attributed to Bachan’s intangible assets. The prior year period included $0.5 million in acquisition related costs.•The sale of our Milpitas, California property resulted in an $18.5 million gain, partially offset by $0.5 million in restructuring and impairment charges. The prior year period included $5.1 million in restructuring and impairment charges. 3* Adjusted Consolidated Net Sales excludes the prior-year quarter’s $12.2 million in non-core sales attributed to a temporary supply agreement (“TSA”) with Winland Foods, Inc., which concluded during the quarter ended March 31, 2026. See Appendix page A1 for areconciliation of our non-GAAP measures to their most comparable GAAP financial measures.
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Highlights (continued)FY26 Q4 EPS (diluted) improved $0.58, or 49.2%, to $1.76 Adjusted Diluted EPS* improved $0.12, or 9.0%, to $1.46FY26 Fourth consecutive year of record-high net sales and gross profit Third consecutive year of record-high operating income Reported and Adjusted Consolidated Net Sales* grew 1.1% and 0.8%, respectively Reported and Adjusted Operating Income* increased 8.3% and 4.2%, respectively Reported and Adjusted Diluted EPS* increased 15.0% and 1.6%, respectively Operating cash flow increased 8.5% to a record $283.8 million Regular cash dividend increased for the 63rdconsecutive year, with cash dividends to shareholders totaling $108.8 million Common stock repurchases totaling $36.3 million 4* See Appendix pages A1-A3 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures
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Bachan’s Acquisition Highlights Acquisition completed on May 1, 2026 Bachan’s continues the path of strong growth, with Circana data for the quarter ending June 30, showing sales growth of 8.7%, and TDPs up over 16% Bachan’s added $15.4 million in net sales for the two months ended June 30, accounting for 640 basis points of Retail segment net sales growth and 520 basis points of Retail segment volume growth for the quarter The acquisition reinforces our expanding position in the sauce category and is expected to provide additional opportunities for future growth through our retail and foodservice distribution network, supply chain capabilities and synergies, and culinary expertise New items planned for launch in fiscal 2027 include Japanese mayonnaise and wing sauce 5
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Q4 Retail Segment Highlights Net sales grew 0.9% to $243.6 million, while volume (measured in pounds shipped) declined 1.7%. Bachan’s delivered $15.4 million in incremental net sales. Net sales growth was unfavorably impacted by:•Lapping the club channel pipeline fill of Chick-fil-A®sauces•Lapping the Texas Roadhouse®dinner rolls national grocery rollout•Reduced club channel sales for our Sister Schubert’s®dinner rolls 6
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Q4 Retail Category Highlights HighlightsBrandCategoryNew York Bakery grew sales 2.8%, well ahead of the category’s 2.2% decline, resulting in 220 basis points of share growth and a category-leading market share of 45.5%New York Bakery Frozen Garlic BreadTexas Roadhouse grew sales 28.1%, resulting in 370 basis points of share growth and market share of 19.2%Texas Roadhouse®Frozen Dinner RollsBachan’s grew sales 8.7% and TDPs over 16%Bachan’s®Barbecue Sauce Source: CircanaTime period: 13 weeks ending 6/28/2026 7
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Q4 Foodservice Segment HighlightsFoodservice segment net sales decreased 5.3% to $221.4 million Excluding the non-core TSA sales, Adjusted Foodservice Net Sales* decreased 0.1% while volume (measured in pounds shipped) improved 0.1% The Adjusted Foodservice Net Sales performance reflects gains from our leading national chain restaurant accounts, offset by reduced sales to other chains and lower sales for our branded Foodservice products 8* See Appendix page A1 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures
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Q4 Financial Performance – Net Sales 0.4%(3.3)%3.2%Core +0.4%(2.6)% Values may not foot due to rounding9 ($ in millions)(2.2)%
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Q4 Financial Performance – Gross Margin Reported Gross Margin increased 220 basis points to 24.5%, driven by ongoing cost savings programsAdjusted Gross Margin*, which excludes TSA sales as those sales did not contribute meaningfully to gross profit, increased 160 basis points 10*See Appendix page A1 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures +220 bps+160 bps * *
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Q4 Financial Performance – Operating Income ($ in millions) Values may not foot due to rounding Other ItemsOther SG&A 11 Operating Income grew $18.8 million to $57.7 million driven by strong gross profit improvement and the favorable impact of the $18.5 million gain on the Milpitas plant property sale, partially offset by a net increase in acquisition-related SG&A expenses and the amortization expense for Bachan's intangible assets * Includes $18.5 million gain on the Milpitas plant property sale* Core + $7.8
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Q4 Financial Performance – EPS (diluted) 12 Other ItemsOther SG&A EPS (diluted) improved $0.58 to $1.76 driven by strong core business performance and the favorable impact of the gain on the Milpitas plant property sale, partially offset by a net increase in acquisition-related SG&A expenses and the amortization expense for Bachan's intangible assets * Includes $0.67 per share gain on the Milpitas plant property sale* Values may not foot due to rounding
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Q4 Financial Performance –EPS (diluted) Reported to Adjusted (non-GAAP) Values may not foot due to rounding 13 Other ItemsOther SG&A * Includes $0.67 per share gain on the Milpitas plant property sale * ** See Appendix page A2 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures **
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FY26 Cash Flow and Balance Sheet Overview Operating cash flow increased 8.5%, to a record $283.8 million Capital expenditures totaled $77.7 million Interest expense totaled $1.8 million in the current year, as a portion of the Bachan’s acquisition was financed with a $200 million term loan Cash dividends to shareholders totaled $108.8 million Common stock repurchases totaled $36.3 million 14
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FY27 Outlook We will continue to support the three pillars of our growth plan:•Accelerate core business growth•Simplify our supply chain to reduce costs and grow margins•Expand our core with focused M&A and strategic licensing Retail segment sales will continue to benefit from incremental sales attributed to the Bachan’s acquisition, in addition to the new items we have recently launched or have planned in our pipeline Foodservice segment sales are expected to be supported by select quick-service restaurant customers in our mix of national chain restaurant accounts We continue to monitor external factors, including U.S. economic performance and consumer behavior, that may affect demand for our products. We continue to monitor the impact of the Cyclospora outbreak on product demand and sales. In aggregate, we anticipate a moderate level of input cost inflation that we plan to offset through inflationary pricing and our ongoing cost savings programs, as we remain focused on continued margin improvement15
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APPENDIX
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Reconciliation of GAAP to non-GAAP Net Sales and Gross Margin – Q4 and Fiscal Year A1Note: 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 and fiscal year ended June 30, 2026 and 2025.
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Reconciliation of GAAP to non-GAAP Operating Income and Diluted EPS – Q4 A2 Note: Adjusted Operating Income and Adjusted Diluted EPS are non-GAAP financial measures that exclude certain items affecting comparability, which can impact the analysis of our underlying core business performance and trends. The table above presents a reconciliation between 1) operating income as reported in accordance with GAAP and Adjusted Operating Income and 2) dilutedEPS as reported in accordance with GAAP and Adjusted Diluted EPS for the three months ended June 30, 2026 and 2025. For 2026, the adjustments reflect incremental SG&A expenses attributed to the Bachan’s acquisition; incremental SG&A expensesattributed to the amortization of intangible assets resulting from the Bachan’s acquisition; and restructuring, impairment and other, net, which primarily consists of the gain on the sale of the Milpitas real property. For 2025, the adjustments reflect incremental SG&A expenses attributed to the Atlanta production facility acquisition and restructuring and impairment charges primarily related to the closure of our production facility in Milpitas, California.
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Reconciliation of GAAP to non-GAAP Operating Income and Diluted EPS – Fiscal Year A3 Note: Adjusted Operating Income and Adjusted Diluted EPS are non-GAAP financial measures that exclude certain items affecting comparability, which can impact the analysis of our underlying core business performance and trends. The table above presents a reconciliation between 1) operating income as reported in accordance with GAAP and Adjusted Operating Income and 2) diluted EPS as reported in accordance with GAAP and Adjusted Diluted EPS for the fiscal year ended June 30, 2026 and 2025. For 2026, the adjustments reflect incremental SG&A expenses attributed to the Bachan’s acquisition; incremental SG&A expensesattributed to the amortization of intangible assets resulting from the Bachan’s acquisition; and restructuring, impairment and other, net, which consists of restructuring and impairment charges resulting from the closure of our sauce and dressing production facility in Milpitas, California, the gain on the sale of the Milpitas real property, and charges related to the impairment of manufacturing equipment, net of a recovery through an insurance claim. For 2025, the adjustments reflect incremental SG&A expenses attributed to the Atlanta production facility acquisition; restructuring and impairment charges primarily related to the closure of our production facility in Milpitas, California; and the one-time noncash pension settlement charge.