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FY27 Q1 Earnings PresentationFiscal Period Ended September 30, 2026November 3, 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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FY27 Q1 Highlights Reported consolidated net sales declined 2.4% to $481.5 million•Adjusted Consolidated Net Sales*declined 0.3%, as both Retail and Foodservice were significantly impacted by the cyclospora outbreak, particularly across our dressing, dip and crouton product lines•Retail sales grew 2.0%, as incremental sales from Bachan’s, along with strong growth from our Texas Roadhouse dinner rolls, more than offset the impacts of cyclospora•Adjusted Foodservice Net Sales* decreased 2.6%, as strength from select national chain accounts and a modest level of inflationary pricing, were offset by the impacts of the cyclospora outbreak•The cyclospora outbreak has moderated in recent weeks Gross profit declined $8.0 million to $110.8 million, as incremental Bachan’s gross profit and productivity gains were more than offset by the impacts of the cyclospora outbreak, record-high diesel costs, increased freight costs and commissioning costs for the addition of new capacity at our sauce and dressing facility in Atlanta, Georgia 3* Adjusted Consolidated Net Sales and Adjusted Foodservice Net Sales exclude the prior-year quarter’s $10.7 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 a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures.
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FY27 Q1 Highlights(continued) Operating income declined $17.8 million, to $41.4 million•Core Business Performance: Decreased $16.5 million due to:‐Lower gross profit as the benefits of incremental Bachan’s gross profit and productivity gains were more than offset by:•Unfavorable impacts of the cyclospora outbreak•Higher diesel and freight costs•Commissioning costs for new capacity‐Higher SG&A costs related to Bachan’s•Other Items: A net decline of $1.3 million, reflecting the impact of the following factors:‐The current year period includes noncash amortization expense of $2.4 million attributed to Bachan’s intangible assets‐The prior year period included $1.1 million in restructuring and impairment charges EPS (diluted) declined $0.64 or 37.4%, to $1.07 Adjusted Diluted EPS* decreased $0.60, or 34.5%, to $1.14 4* See Appendix page A2 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures
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Bachan’s Acquisition Highlights Bachan’s continues the path of strong growth, with Circana data for the quarter ending September 30, showing sales growth of 10.7%, TDPs up 7.0% and dollar sales velocity up 13.0% Bachan’s added $17.8 million in net sales for quarter ended September 30, accounting for 720 basis points of Retail segment net sales growth and 750 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 FY27 include Japanese mayonnaise and wing sauce 5
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Q1 Retail Segment Highlights Net sales grew 2.0% to $252.7 million, while volume (measured in pounds shipped) improved 0.4% Net sales growth was driven by:•Bachan’s contributing $17.8 million in incremental net sales•Strong demand for Texas Roadhouse rolls as consumption per Circana grew 21.3% Growth was partially offset by the cyclospora outbreak, which is estimated to have reduced Retail net sales by approximately 4% Q1 product innovation includes New York Bakery Baked Bites and Focaccia Bread 6
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Q1 Retail Category TrendsHighlightsMarzetti BrandCategoryNew York Bakery grew sales 5.1%, well ahead of the category’s 0.6% decline, resulting in +250 basis points of share growth and a category-leading market share of 46.6%New York BakeryFrozen Garlic BreadTexas Roadhouse grew sales 21.3%, resulting in +270 basis points of share growth and market share of 22.3%Texas Roadhouse®Frozen Dinner RollsBachan’s grew sales 10.7%, resulting in share growth of 80 basis points, with TDPs up 7.0% and dollar sales velocity up 13.0%Bachan’s®Barbecue SauceCategory sales declined 13.4%, primarily driven by the cyclospora impact, while Marzetti core Classics dressing items (which exclude the Simply line) declined 11.3% and Chick-fil-A dressing was off 14.1%Marzetti® Classics, and Chick-fil-A®Produce DressingCategory sales declined 17.0%, primarily driven by the cyclospora impact, while Marzetti brands declined 12.3% in aggregate, adding 160 basis points of shareNew York Bakery, Marzetti®, Chatham Village® and Cardini’s®CroutonsSource: CircanaTime period: 13 weeks ending 9/27/2026 7 Frozen Bread and Bachan’s Momentum Offset by Cyclospora Impact
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Q1 Foodservice Segment HighlightsFoodservice segment net sales decreased 6.9% to $228.8 million Adjusted Foodservice Net Sales* decreased 2.6%, while volume (measured in pounds shipped) fell 4.1%, as strength from select national chain accounts was offset by the unfavorable impacts of the cyclospora outbreak, which reduced sales by approximately 2% 8* See Appendix page A1 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures
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Q1 Financial Performance – Net Sales 0.8%3.6%Core (0.2)%(4.6)% Values may not foot due to rounding9 ($ in millions) (2.2)%(2.4)% * The cyclospora outbreak is estimated to account for a volume / mix decline of approximately 3% *
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Q1 Financial Performance – Gross Margin Reported Gross Margin declined 110 basis points to 23.0% as the benefits of incremental Bachan’s gross profit and our cost savings programs were more than offset by: •Lower organic sales volumes attributed to the impacts of the cyclospora outbreak and the associated impact of lower production volumes on our plant operations•Record-high diesel costs•Higher freight costs•Commissioning costs for the addition of new production capacity at our sauce and dressing facility in Atlanta, Georgia Adjusted Gross Margin*, which excludes TSA sales as those sales did not contribute meaningfully to gross profit, decreased 160 basis points 10*See Appendix page A1 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures**
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Q1 Financial Performance – Operating Income ($ in millions) Values may not foot due to roundingOther Items -SG&A 11 Operating Income declined $17.8 million to $41.4 million driven by the lower gross profit and increased SG&A Core ($16.5)($17.8)Other Items –All other
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Q1 Financial Performance – EPS (diluted) 12 EPS (diluted) decreased $0.64 to $1.07, driven by the lower gross profit and higher SG&A Values may not foot due to rounding Other Items -SG&AOther Items –All other
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Q1 Financial Performance –EPS (diluted) Reported to Adjusted (non-GAAP) Values may not foot due to rounding 13* See Appendix page A2 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measuresOther Items -SG&A*
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FY27 Q1 Cash Flow and Balance Sheet Overview Net cash provided by operating activitiestotaled $51.0 million, compared with $69.5 million in the prior-year period. The decrease was primarily due to lower net income. Payments for property additionstotaled $17.8 million. Interest expensetotaled $2.8 million in the current year, versus none in the prior year. Cash dividend of $1.00 per share was paid on September 30, consistent with the increased dividend rate established nine months ago and extending the streak of annual dividend increases to 63 years. Common stock repurchases totaled $5.8 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, including core item growth and the new Mayo launch, in addition to other new items we have recently launched under our New York Bakery and Texas Roadhouse brands, along with a range of sauce platform new items Foodservice segment sales will remain supported by select quick-service restaurant customers in our mix of national chain restaurant accounts. We are also excited to announce that beginning November 16, Chick-fil-A restaurants will introduce a new spicy version of their popular Chick-fil-A sauce in restaurants nationwide, produced and supplied by Marzetti. FY27 capital expenditures are anticipated to total approximately $90 million We continue to monitor external factors, including U.S. economic performance and consumer behavior, that may affect demand for our products We continue to anticipate moderate commodity cost inflation, further exacerbated by significantly elevated diesel and freight costs, most or all of which we expect to mitigate through inflationary pricing and our cost savings programs as we remain focused on margin improvement15
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APPENDIX
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Reconciliation of GAAP to non-GAAP Net Sales and Gross Margin A1 Note: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 ended September 30, 2026 and 2025. Three Months Ended September 30, 2026 Three Months Ended September 30, 2025 (Dollars in thousands) Reported TSA-Related Adjusted (non-GAAP) Reported TSA-Related Adjusted (non-GAAP) Consolidated Net Sales $ 481,522 $ — $ 481,522 $ 493,472 $ 10,691 $ 482,781 Cost of Sales 370,748 — 370,748 374,653 10,691 363,962 Gross Profit $ 110,774 $ — $ 110,774 $ 118,819 $ — $ 118,819 Gross Margin 23.0 % — % 23.0 % 24.1 % — % 24.6 % Foodservice Segment Foodservice Net Sales $ 228,801 $ — $ 228,801 $ 245,627 $ 10,691 $ 234,936
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Reconciliation of GAAP to non-GAAP Operating Income and Diluted EPS 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) diluted EPS as reported in accordance with GAAP and Adjusted Diluted EPS for the three month periods ended September 30, 2026 and 2025. The current-year adjustment reflects incremental SG&A expenses attributed to the amortization of intangible assets resulting from the Bachan’s acquisition. The prior-year adjustment reflects restructuring and impairment charges resulting from the closure of our sauce and dressing production facility in Milpitas, California.