Armanino Foods of Distinction (AMNF) investor relations material

Executive summary

• Achieved record net sales of $21.7 million in Q2 2026, up 8.5% year-over-year, driven by core food service, national account expansion, and international growth, especially in Asia.

• Gross margin expanded by 265 basis points to 48.3%, with gross profit rising 14.8% to $10.5 million and net income of $4.9 million or $0.16 per diluted share.

• Non-GAAP operating income increased 14.9% to $7.3 million; non-GAAP net income up 13.9% to $5.6 million.

• Major retail wins with Walmart and Kroger in prepared meals, new product launches like Calabrian Chili Sauce, and expanded national account business.

• Signed a 15-year lease for a new, highly automated 91,000 sq ft manufacturing facility in Mountain House, CA, to consolidate operations and support future growth.

Financial highlights

• Net sales increased 8.5% to $21.7 million compared to $20.0 million in Q2 2025.

• Gross profit rose 14.8% to $10.5 million; gross margin reached 48.3% versus 45.6% last year.

• Operating income grew 1.4% to $6.4 million (29.5% margin); net income was $4.9 million.

• Diluted EPS was $0.1581, up 2.4% from $0.1544 in Q2 2025; non-GAAP EPS was $0.1793, up 15.5%.

• Ended quarter with $27.3 million in cash, no debt, after $6 million in dividends and $4.5 million in share repurchases.

Outlook and guidance

• Growth in national accounts and international expected to accelerate in 2027; 2026 growth led by core U.S. food service and secondary sauces.

• Early retail and national account wins are just beginning to contribute; significant volume impact expected in future periods.

• Margins expected to remain strong but may see slight compression as new channels scale.

• The new Mountain House facility, a $20 million investment funded from cash on hand, is expected to drive efficiency and capacity, with production transition targeted for Q2 2027.

• Management targets continued growth by strengthening foodservice leadership, expanding sauce portfolio adoption, converting national account pipeline, and accelerating international growth.