Marzetti Q1 revenue up 5.8%, beats analyst expectations

Overview

• Marzetti Q1 revenue grows 5.8% yr/yr, beating analyst expectations

• Adjusted operating income for Q1 rises 8.1%, reflecting higher gross profit

• Restructuring charges related to facility closure reduced Q1 net income

Outlook

• Marzetti anticipates Retail sales growth from licensing program and proprietary brands

• Foodservice sales expected to be supported by quick-service restaurant demand

Result Drivers

• RETAIL SEGMENT - Sales growth driven by New York Bakery frozen garlic bread and licensing programs

• FOODSERVICE SEGMENT - Higher demand from national chain restaurant accounts and inflationary pricing drove sales growth

• COST SAVINGS - Adjusted gross margin improved due to ongoing cost savings programs and higher sales volumes

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Marzetti Co is $190.00, about 16.7% above its November 3 closing price of $158.24

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nBw9vqbQ5a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)