The Marzetti Company · NASDAQ:MZTI
The Marzetti — Lancaster Colony — Baird Global Consumer, Technology & Services Conference 2025
45 slides from The Marzetti's conference presentation, June 2025
Slide 1: June 2025
June 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement p2 This presentation was prepared by Lancaster Colony Corporation 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
Slide 3: About Lancaster Colony Corporation
About Lancaster Colony Corporation p3 • Manufacturer and Marketer of Specialty Food Products • Established in 1961 • Headquartered in Westerville, Ohio • Fiscal 2024 Net Sales of $1.9 Billion (primarily U.S.) • 14 Production Facilities in Eight States • Approximately 3,900 Employees
Slide 4: Company Highlights
Company Highlights p4 • Leading Market Share Positions in Retail Food Categories • Supplier to 17 of the Top 30 National Restaurant Chains • Growing and Consumer-Relevant Retail Licensing Program • Long History of Sustained Organic Sales Growth • Strong Cash Flows • One of 12 U.S. Companies to have
Slide 5: Long History of Sustained Growth
Long History of Sustained Growth p5 $ in Millions $2,000 11% Compound Annual Growth Rate a $1,500 2003 $1,000 2000 1997 $500 1989 1978 1969 1971 1980 1990 2000 2010 2024 Net sales information is presented as originally reported in Lancaster Colony's Annual Report for the fiscal years ending June 30.
Slide 6: Retail Sales Mix (53% of Total Net Sales)
Retail Sales Mix (53% of Total Net Sales) p6 Refrigerated Dressings, * Frozen Dips & Other * Breads 21.5% 35.5% Shelf-Stable Dressings, Sauces & Croutons 43.0% * * * * * * Based on reported net sales for the fiscal year ended June 30, 2024. * Products for these brands are produced and sold under exc
Slide 7: Foodservice Sales Mix (47% of Total Net Sales)
Foodservice Sales Mix (47% of Total Net Sales) p7 Branded & Other 21.6% National Accounts 78.4% QSR Customers Based on reported net sales for the fiscal year ended June 30, 2024.
Slide 8: Evolution of Our "Better Food Company" Strategy
Evolution of Our "Better Food Company" Strategy p8 1. Defined Winning - Pursue Top Quartile Financial Performance • Grow Organic Sales Volumes Low- to Mid-Single Digit (pounds shipped basis) • Grow Operating Margins 2. Developed Strategy • Strategic Growth Initiatives – Accelerate Base Business Grow
Slide 9: Retail Segment Growth Initiatives
Retail Segment Growth Initiatives p9 Initiative Brand Products Initial Ship Date Expanding Distribution NEW Into Club Channel Also Adding Honey Mustard and Zesty Buffalo Flavors to Core Lineup * Spring 2025 Chick-fil-A Refrigerated Dressings NEW Adding New Parmesan Licensing Caesar flavor Spring 202
Slide 10: Retail Segment Growth Initiatives
Retail Segment Growth Initiatives p 10 I nit iat ive B ran d Products In itial S h ip Date Te x as R o ad h o u s e S t e ak S au c e s National Launch * March 2024 Licensing Te x as R o ad h o u s e Di n n e r R o l l s Commenced National Launch September 2024 * Ne w Ol i v e Gar d e n Dr e s s i n
Slide 11: Consumer-Relevant Retail Licensing Program
Retail Segment Growth Initiatives p 11 Consumer-Relevant Retail Licensing Program • Successfully Developed Exclusive Licensing Agreements Through our Proven Culinary Expertise and Demonstrated Sales Execution in the Retail Channel Combined with our Strong Reputation and Longstanding Relationships in
Slide 12: FY25 Supply Chain Path Forward
Strategic Growth Initiatives p 12 FY25 Supply Chain Path Forward … • Maintain Continuous Supply Across the Entire Supply Chain • With Successful Implementation of New ERP System Complete, Shift to Leveraging the System’s Capabilities • With Strategic Manufacturing Asset (Horse Cave Sauce/Dressing Pl
Slide 13: Simplify Supply Chain and Reduce Costs: Value Engineering
Strategic Growth Initiatives p 13 S i mp l i f y S u p p l y C h ai n an d R e d u ce C o s t s Value Engineering (VE) to Help Offset Cost Inflation and Improve Profitability Identify Opportunities to Reduce Product VE Approach and Packaging Costs that Consumer Doesn’t Value • Lower-Cost Packaging M
Slide 14: Simplify Supply Chain and Reduce Costs: Strategic Procurement
Strategic Growth Initiatives p 14 S i mp l i f y S u p p l y C h ai n an d R e d u ce C o s t s Strategic Procurement • Strategic Category Sourcing • Extensive Competitive Bidding • Optimize Contract Duration and Execution Timing • Extend Payment Terms
Slide 15: Significant Capacity Expansion Project for Sauces and Dressings
Strategic Growth Initiatives p 15 Investing to Drive Efficiency and Support Growth Significant Capacity Expansion Project for Sauces and Dressings * * * * * * • Added 192,000 Square Feet to Existing Facility in Horse Cave, KY • Fully Operational Beginning in March 2023 • Provides Increased Processin
Slide 16: Acquisition of Sauce and Dressing Production Facility – Atlanta, GA
Strategic Growth Initiatives p 16 Investing to Drive Efficiency and Support Growth Acquisition of Sauce and Dressing Production Facility – Atlanta, GA • Strategic Addition to Our Manufacturing Network to Benefit Core Sauce and Dressing Operations • Supports Improved Operational Efficiency • Adds Cap
Slide 17: Transportation and Warehousing Initiatives Project T²
Strategic Growth Initiatives p 17 S i mp l i f y S u p p l y C h ai n an d R e d u ce C o s t s Transportation and Warehousing Initiatives Project T² • Continue to Leverage Transportation Management System • Utilize Carrier Segmentation and Lane Analysis to Ensure the Highest Level of Service at the
Slide 18: Our R&D Team is a Core Strength of our Business
Culinary Excellence p 18 Our R&D Team is a Core Strength of our Business … • Based at our Innovation Center in Central Ohio, our R&D Team Brings Together the Best in Culinary Arts, Food Science and Technology • Supports Collaboration and Innovation Among our Foodservice and Retail Segments to Develo
Slide 19: Fiscal 2025 – Summarized Year-To-Date Financial Performance
Fiscal 2025 – Summarized Year-To-Date Financial Performance p 19 $ in Millions (Except Per Share Values) Fiscal 2025 Year-To -Date R esults vs. Prio r Year (Nine Months Ended March 31, 2025) Value $ Change % Change Consolidated Net Sales $1,433.7 $14.7 1.0% Gross Profit $349.6 $14.9 4.4% SG&A $168.2
Slide 20: Strong Balance Sheet
Strong Balance Sheet p 20 $ in Millions June 30 Mar 31 2022 2023 2024 2025 Cash and Equivalents $60 $88 $163 $125 Total Debt $0 $0 $0 $0 • Debt Free • Credit Revolver of $150 Million, Expandable up to $225 Million • Fiscal Years 2022 and 2023 Included Notable Investments in Capacity Expansion Projec
Slide 21: Investing to Grow While Returning Cash to Shareholders
Investing to Grow While Returning Cash to Shareholders p 21 Cash Pr i or i t i e s Fiscal 2024 – Major Cash Uses Project Ascent Share Repurchases $7.6 MM • Invest in Existing Business $8.2 MM - Fiscal 2025 capital expenditures estimated at $65 Million Regular Capital Dividend Expenditures Payments •
Slide 22: Appendix A: Supplemental Financial Information
Appendix A Supplemental Financial Infor mation
Slide 23: Results of Consolidated Operations – Current Fiscal Year Periods
Results of Consolidated Operations – Current Fiscal Year Periods A1
Slide 24: Reconciliation Between Reported and Adjusted Operating Income (non-GAAP)
Reconciliation Between Reported and Adjusted Operating Income (non-GAAP) - Current Fiscal Year Periods A2 A2
Slide 25: Results of Consolidated Operations – Most Recent Fiscal Years
Results of Consolidated Operations – Most Recent Fiscal Years Ending June 30 A3
Slide 26: Summarized Earnings Per Share Waterfall – Fiscal 2023 to Fiscal 2024
Summarized Earnings Per Share Waterfall – Fiscal Year 2023 to Fiscal Year 2024 A4 Fiscal Year Periods Ended June 30 ( D i l u t e d E a r n i n g s P e r S h a re ) $0.90 $5.76 $0.70 $0.61 $4.04 ($0.49) FY23 Exclude Impact of Cost to Exit Net Reduction Improved Business FY24 Reported FY23 Impairment
Slide 27: Fiscal Year Net Sales Results
Fiscal 24 Sales Driven by Volume Gains Partially Offset by Deflationary Pricing in Foodservice A5 Fiscal 23 and 22 Sales Gains Driven by Pricing Actions Taken to Offset Inflationary Costs Fiscal Year Net Sales Results Fiscal Years Ended June 30 $ in Millions $ 1 ,8 7 2 $2, 000 $ 1 ,8 2 3 +2. 7% $ 1
Slide 28: Fiscal Year EBITDA
Fiscal 24 and Fiscal 23 EBITDA Increases Driven by Reduced Expenditures for Project Ascent, Pricing Actions to Offset Inflation, and Cost Savings Programs A6 Fiscal 22 EBITDA Impacted by Inflationary Costs, Supply Chain Disruptions and Other COVID-19 Factors Fiscal Year Earnings Before Interest, Tax
Slide 29: Fiscal Year EBITDA Calculation Details
Fiscal Year EBITDA Calculation Details A7 Lancaster Colony Corporation * Calculation of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) ($ in Millions) Fiscal Years Ending June 30, 2022 2023 2024 Income Before Income Taxes ** $112 $140 $198 Depreciation and Amortization $46 $
Slide 30: Capital Expenditure History
Capital Expenditure History A8 $ in Millions $132 $88 $90 $83 $71 $68 $27 $31 $18 $17 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Fiscal years ended June 30.
Slide 31: Regular Cash Dividends Per Share
Regular Cash Dividends Per Share A9 $ Per Share $3.55 $3.35 $3.15 $2.95 $2.75 $2.55 $2.35 $2.15 $1.96 $1.82 2015 2016* 2017 2018 2019 2020 2021 2022 2023 2024 Regular cash dividends for the fiscal years ended June 30. * Excludes special cash dividend of $5.00 per share paid in FY16.
Slide 32: Appendix B: Retail Brand Market Share and Related Information
Appendix B R e t a i l B r a n d M a r k e t S h a re and Related Infor mation
Slide 33: Portfolio of Strong Brands and Licensing Relationships
Portfolio of Strong Brands and Licensing Relationships (Retailer Sales and Market Share Data per Circana*) B1 Marzetti® Sister Schubert’s® Licensed Brands ^ Ref. Dressing** Dips $ Sales: 157.0MM Olive GardenSM $ Sales: 148.3MM $ Sales: 138.0MM $ Sales: 159.1MM $ Share: 78.3% $ Share: 56.2% $ Share:
Slide 34: Marzetti Refrigerated Dressing Market Share
Refrigerated Dressing Market Share B2 All Others Marzetti® * 18.6% & Chick-fil-A 27.1% Bolthouse 11.1% Litehouse 24.8% Marie’s 18.4% Total Category Sales: $546.7 MM 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet *Chick-fil-A® sales accounted for $40 million, or a 7.4% dollar share
Slide 35: Marzetti Refrigerated Dressing Distribution
Marzetti Refrigerated Dressing Distribution B3 ACV Distribution 41 - 70% 71 - 90% Total U.S. Multi-Outlet 74.3% ACV Weighted Distribution 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet
Slide 36: Marzetti Produce Dip Market Share
Produce Dip Market Share B4 Marzetti 78.3% Litehouse 10.4% All Others 11.3% Total Category Sales: $176.2MM 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet
Slide 37: Marzetti Dip Distribution
Marzetti Dip Distribution B5 ACV Distribution 21 - 80% 81 - 100% Total U.S. Multi-Outlet 73.9% ACV Weighted Distribution 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet
Slide 38: New York Bakery Frozen Garlic Bread Market Share
Frozen Garlic Bread Market Share B6 Pepperidge Farm New York Bakery 8.0% 41.6% All Others 11.0% Private Label 39.4% Total Category Sales: $833.6 MM 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet
Slide 39: New York Bakery Frozen Garlic Bread Distribution
New York Bakery Frozen Garlic Bread Distribution B7 ACV Distribution 70 - 89 90 - 100% Total U.S. Multi-Outlet 90.8% ACV Weighted Distribution 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet
Slide 40: Sister Schubert's Frozen Roll Market Share
Frozen Roll Market Share B8 Private Label Sister Schubert’s 4.8% 56.2% All Others 6.5% Rhodes 32.5% Total Category Sales: $279.3 MM 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet
Slide 41: Sister Schubert's Distribution
Sister Schubert's Distribution B9 ACV Distribution 21 - 40% 41 - 70% 71 - 100% Total U.S. Multi-Outlet 81.3% ACV Weighted Distribution 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet
Slide 42: Crouton Market Share
Crouton Market Share B10 Marzetti, Cardini’s, Mrs. Cubbison’s / New York Bakery, Fresh Gourmet Chatham Village 17.9% 30.2% Private Label 43.8% All Others 2.7% Sugar Foods 5.4% Total Category Sales: $307.8 MM 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet
Slide 43: New York Bakery Crouton Distribution
New York Bakery Crouton Distribution B11 ACV Distribution 69 - 100% Total U.S. Multi-Outlet 81.2% ACV Weighted Distribution 52 weeks ending 6/30/24, Source: Circana, Total U.S. Multi-Outlet
Slide 44: Strong Retail Sales and Volume Growth vs. Peers
Lancaster Colony Continues to Achieve Strong Retail Sales and Volume Growth vs. Peers (Dollar Sales Growth and Volume (lbs) Per Circana *) B12 A34R3ST8)"TTS9:);Y3=>?)E9>@A)B)A9:@T89Y)+@9Y)CaCN)>3)CaC. EBFG+,-"F.#G,/F0+1,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, V"FFBR,EBFG
Slide 45: Lancaster Colony Corporation
Lancaster Colony Corporation • 380 Polaris Parkway, Suite 400 • Westerville, Ohio 43082 www.lancastercolony.com June 25
Lancaster Colony — Baird Global Consumer, Technology & Services Conference 2025 on 6ix