Marzetti Company Reports 2% Sales Growth to $1.91 Billion for Fiscal Year 2025

The Marzetti Company, formerly known as Lancaster Colony Corporation, reported a consolidated net sales increase of 2.0% for the fiscal year ending June 30, 2025, reaching a record $1.91 billion, up from $1.87 billion in the previous year. This growth was driven by higher sales volumes in both the Retail and Foodservice segments, despite a decline in sales from exited product lines. The Retail segment accounted for 53% of total sales, while Foodservice contributed 47%. The company’s gross profit also rose by 5.4% to $455.6 million, resulting in a gross margin of 23.9%, compared to 23.1% in the prior year.

Operating income increased by 10.5% to $220.3 million, reflecting improved gross profit and reduced restructuring charges. The company recorded a pension settlement charge of $14.0 million, which impacted net income, which rose 5.5% to $167.3 million, translating to diluted earnings per share of $6.07, up from $5.76 in 2024. The increase in profitability was attributed to cost savings initiatives and a favorable sales mix, although selling, general, and administrative expenses rose by 5.6% due to investments in IT and acquisition-related costs.

Strategically, Marzetti completed the acquisition of a sauce and dressing production facility in Atlanta, Georgia, for $78.8 million in February 2025, which is expected to enhance operational efficiency and capacity. The company also plans to continue leveraging its strong retail brands and customer relationships to drive growth, particularly through licensing agreements with major brands like Chick-fil-A and Subway. The company’s workforce remained stable at approximately 3,700 employees, with 18% represented under collective bargaining agreements.

Looking ahead, Marzetti anticipates continued growth in both segments for fiscal 2026, supported by volume increases and contributions from its licensing program. The company expects to manage input costs amid modest inflation through contractual pricing and ongoing cost-saving measures. Additionally, the company is focused on integrating its newly acquired Atlanta facility into its operations, which is expected to further bolster its manufacturing capabilities. Overall, Marzetti's financial outlook remains positive, with a commitment to maintaining strong cash flow and shareholder returns through dividends and share repurchases.