American Marconi Wireless News - Armanino Foods Reports Third Quarter 2026 Financial Results

PLEASANTON, CA / ACCESS Newswire / November 10, 2026 / Armanino Foods of Distinction, Inc. (OTCQX:AMNF), a leading producer and marketer of premium frozen Italian and specialty foods serving foodservice, retail, and industrial customers across North America and select international markets, today announced financial results for the third quarter ended September 30, 2026.

Financial Summary:

Third Quarter 2026 and Recent Business Highlights:

• Delivered 10% net sales growth, driven by continued momentum across core U.S. Foodservice, National Accounts, and International markets.
• Generated $6.0 million in reported operating income, representing 27.9% of net sales, and $7.3 million of non-GAAP operating income, representing 33.6% of net sales, an increase of approximately 190 basis points vs. Q3 2025; non-GAAP operating income grew by 16.5% year-over-year.
• Achieved 20% growth in secondary sauces, reinforcing the Company's progress in expanding specialty sauces beyond pesto.
• Increased International business to 10% of total company sales, reflecting continued market penetration and growing demand across international markets.
• Advanced National Accounts partnerships, including the national launch of a co-developed Gochujang Carbonara sauce with Noodles & Company. In addition, the Company expanded its partnership with Wonder, a growing multi-concept restaurant platform focused on convenience and delivery, with the nationwide introduction of Royal Miso and Pomegranate Vinaigrette dressings, building on its existing Basil Pesto and Romesco sauces.
• The Mountain House manufacturing expansion remains on schedule and within budget, targeting production in Q2 2027.Maintained a strong financial position, with $29.5 million in cash and cash-equivalents and no debt.

Management Commentary:

Deanna Jurgens, President and Chief Executive Officer, commented, "Armanino delivered another strong quarter, with double-digit net sales growth, expanded adjusted operating margins and double-digit growth in both non-GAAP operating income and net income. More importantly, our results demonstrate the continued execution of our growth strategy, as we translate our strategic priorities into measurable commercial momentum and financial performance.

"We are seeing tangible progress against our growth agenda. Our core U.S. Foodservice business continues to generate strong momentum, while expanding our National Accounts partnerships are creating new opportunities for growth. Recent national launches with Noodles & Company and the expansion of our relationship with Wonder demonstrate our ability to leverage culinary innovation to secure new business and broaden our market reach. At the same time, secondary sauces grew 20% in the quarter, and international markets now represent 10% of total company sales, providing further evidence of the strength and diversification of our growth drivers.

"We are also advancing the infrastructure required to support our next phase of growth. Our Mountain House manufacturing facility remains on schedule and within budget, with production targeted for the second quarter of 2027. This investment is designed to increase capacity, enhance operating efficiencies and position Armanino to support a substantially larger business.

"We are making these investments while navigating an increasingly challenging cost environment. Inflation, tariffs, and rising commodity costs continue to create pressure, and we anticipate these headwinds will intensify into the fourth quarter. We are also managing planned manufacturing transition expenses and working capital requirements, including inventory investments extending into the second quarter of 2027. Our strong adjusted profitability and $29.5 million in cash provide financial flexibility as we navigate these pressures and continue investing in our long-term growth.

"As I look ahead, my confidence in Armanino's long-term potential continues to grow. We have a leading position in foodservice pesto, an expanding portfolio of sauces, stronger relationships with national customers and growing international opportunities. These strengths, combined with the progress we are making against our commercial priorities, reinforce my conviction in the scale of the opportunity ahead. I believe Armanino is exceptionally well positioned for its next phase of growth."

Third Quarter 2026 Financial Results

Net sales for the quarter increased 10% year-over year to $21.7 million, driven by strong performance from international and secondary sauces.

Reported gross profit totaled $10.1 million, or 46.5% of net sales, as compared to 49.5% of net sales in the same period last year. Excluding accelerated depreciation of the Company's current production facility in Hayward, California due to the upcoming relocation of production operations to the new facility in Mountain House, California, non-GAAP gross profit grew 10% to $10.7 million, or 49.5% of net sales.

Reported operating expenses were $4.0 million, compared to $3.6 million in the prior-year quarter. The increase primarily reflected strategic investments in leadership talent and capabilities to support future growth, and facility relocation costs.

Reported operating income totaled $6.0 million, or 27.9% of net sales, compared to $6.2 million, or 31.3% of net sales, in the prior year quarter. Excluding facility relocation costs and non-cash stock-based compensation expense, non-GAAP operating income increased 16.5% to $7.3 million, or 33.6% of net sales, compared to $6.2 million, or 31.7% of net sales, in the prior year quarter.

Reported net income was $4.6 million, or $0.1484 per diluted share, compared to $4.8 million, or $0.1533 per diluted share, in the prior year quarter. Excluding facility relocation costs and non-cash stock-based compensation expense, non-GAAP net income was $5.5 million, or $0.1775 per diluted share, compared to $4.8 million, or $0.1555 per diluted share in the prior year quarter.

See the Use of Non-GAAP Measures discussion below for more information on the non-GAAP metrics mentioned in this section.

Capital Allocation and Balance Sheet

The Company ended the quarter with $29.5 million in cash and cash equivalents and no debt. During the quarter, the Company paid $1.5 million in cash dividends to shareholders. Capital expenditures were $2.0 million in the quarter, reflecting the initial stages of the $20 million planned capital investment in the Mountain House facility.

Q3 Earnings Call and Webcast

Management will host an investor conference call at 4:30 p.m. Eastern time today, Tuesday, November 10, 2026 to discuss the Company's third quarter fiscal 2026 financial results. To participate, please use the following information:

Date: Tuesday, November 10, 2026
Time: 4:30 p.m. Eastern time
U.S. Dial-in: 1-877-451-6152
International: 1-201-389-0879
Webcast: AMNF Q3 FY2026 Earnings Conference Call

Please join at least five minutes before the start of the call to ensure timely participation.

A telephonic replay of the conference call will also be available through November 24, 2026. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13763241. A webcast replay will also be available using the webcast link above.

About Armanino Foods of Distinction, Inc.

Armanino Foods of Distinction, Inc. (OTCQX: AMNF) is a leading producer and marketer of premium frozen Italian and specialty foods serving retail, foodservice and industrial customers across North America and select international markets. Best known for its top selling Basil Pesto, the Company's product line spans a wide variety of sauces and stuffed pasta dishes, chiefly produced in a British Retail Consortium Global Standards Grade AA facility with rigorous quality systems and scalable packaging formats to meet customer needs. To learn more, please visit the Company's website at armaninofoods.com.

Cautionary Statements Regarding Forward-Looking Information

Statements in this news release regarding our expectations and beliefs about our future financial performance and trends in our markets are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

The forward-looking statements in this news release regarding our future financial performance are based on current information and because our business is subject to several risks and uncertainties, actual operating results in the future may differ significantly from the future financial performance expected at the current time. Those risks and uncertainties may include, among others: economic factors affecting consumer confidence and discretionary spending and reducing the consumption of food prepared away from home; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in the Company's relationships with customers and group purchasing organizations; the Company's ability to increase or maintain the highest margin portions of the Company's business; achievement of expected benefits from cost savings initiatives; increases in fuel costs; changes in consumer eating habits; cost and pricing structures and other governmental regulation. The forward-looking statements contained in this press release speak only as of the date of this press release and are based on information and estimates available to the Company at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law.

Investor Relations Contact

Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
(262) 357-2918
[email protected]
www.mzgroup.us

Unaudited Condensed Consolidated Statements of Operations

Unaudited Condensed Consolidated Balance Sheets

Use of Non-GAAP Measures

In preparing the Company's non-GAAP gross profit, non-GAAP operating income, non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) and non-GAAP net income, the Company excluded items that either have a non-recurring impact on our financial performance or which, in the judgment of our management, are not reflective of our underlying business performance. The items excluded from our non-GAAP gross profit, non-GAAP operating income, non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) non-GAAP net income and non-GAAP EPS include:

• Costs resulting from the upcoming relocation of production operations from the Company's current production facility in Hayward, California to its new production facility in Mountain House, California, including accelerated depreciation of leasehold improvements to the Hayward facility, rent expense on the Mountain House facility prior to occupancy, and employee retention bonuses.
• Non-cash expenses related to our equity compensation

The Company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of income from operations to non-GAAP income from operations and net income to non-GAAP net income, their corresponding GAAP measure, please see the reconciliation table shown below.

Reconciliation of GAAP to Non-GAAP Metrics

SOURCE: Armanino Foods of Distinction, Inc.

View the original press release on ACCESS Newswire

P.Stevenson--AMWN