Company Reports Q3 Revenue of $453.4M
Reports Q3 revenue $453.4M, consensus $464.03M. CEO David A. Ciesinski commented, "We were pleased to report record-high gross profit in the quarter despite the decline in net sales. In our Retail segment, our category-leading frozen bread brands performed well as sales of our New York Bakery frozen garlic bread products continued to grow and increase market share while sales of our Sister Schubert's dinner rolls benefited from the pull-forward of demand due to the earlier Easter holiday. These sales gains were more than offset by the impacts of category softness and reduced sales into the club channel. In the Foodservice segment, reported net sales increased 1.5% while Adjusted Foodservice Net Sales, which exclude non-core TSA sales, grew 1.8%, led by higher demand from several of our core national chain restaurant accounts. Looking ahead to the final quarter of our fiscal year, in addition to incremental sales attributed to the Bachan's acquisition, we expect Retail sales will benefit from new product introductions including Marzetti Protein Ranch dressing and veggie dips, a new Olive Garden Zesty Italian dressing flavor, and the addition of a larger-sized bottle for the popular Chick-fil-A Avocado Lime Ranch dressing. In the Foodservice segment, we anticipate continued growth from select customers in our mix of national chain restaurant accounts."
