Strong Revenue and Cost Management Drove Higher Margins and Profitability
Quarterly Dividend Increased to a Record $0.05 Per Share
PLEASANTON, CA / ACCESS Newswire / November 11, 2025 / Armanino Foods of Distinction, Inc. (OTCQX:AMNF), a leading producer and marketer of premium frozen Italian and specialty foods serving foodservice and industrial customers across North America and select international markets, today reported its financial results for the third quarter ended September 30, 2025.
Financial Summary
$ in millions |
|
|
Q3 2025 |
|
|
|
Q3 2024 |
|
|
% Increase |
|
|
Net Sales |
|
$ |
19.7 |
|
|
$ |
17.7 |
|
|
|
11 |
% |
Gross Profit |
|
$ |
9.7 |
|
|
$ |
7.9 |
|
|
|
23 |
% |
Operating Income |
|
$ |
6.1 |
|
|
$ |
5.2 |
|
|
|
18 |
% |
Net Income |
|
$ |
4.8 |
|
|
$ |
4.1 |
|
|
|
16 |
% |
Earnings per Share (Diluted) |
|
$ |
0.15 |
|
|
$ |
0.13 |
|
|
|
20 |
% |
Management Commentary
"Our third-quarter performance demonstrates the continued strength and discipline behind our growth strategy," said Deanna Jurgens, Chief Executive Officer of Armanino Foods. "Strong demand across Foodservice and International channels, along with margin expansion from pricing and operational efficiencies, fueled another quarter of double-digit growth."
"At our recent shareholder meeting, I spoke about unlocking Armanino's full potential, and these results show that momentum. We're reinvesting our gains into automation, process improvements, and talent to build the foundation for sustainable scale. While these initiatives, paired with ongoing macro pressures, may create near-term cost pressure, they are critical to positioning Armanino for long-term success."
"With a debt-free balance sheet, strong cash flow, and a disciplined capital allocation strategy, we remain well positioned to execute on our growth priorities and deliver continued value for our shareholders," Jurgens concluded.
Third Quarter 2025 Financial Results
Net sales for the third quarter of 2025 increased 11% to $19.7 million, compared to $17.7 million in the same year-ago quarter. The increase was largely attributable to strong growth across our Foodservice and International channels in our core pesto sauces.
Gross profit increased 23% to $9.7 million, or 49.5% of net sales, in the third quarter of 2025, compared to $7.9 million, or 44.8% of net sales, in the same year-ago quarter. The improvement reflects strong pricing discipline, an improved sales mix, and ongoing operational efficiency improvements.
Operating expenses totaled $3.6 million, or 18.1% of sales, compared to $2.7 million, or 15.2% of sales, in the year-ago quarter. The increase reflects strategic investments in talent and systems, as well as non-cash incentive costs.
Net income for the third quarter of fiscal 2025 increased 16% to $4.8 million, or $0.15 per diluted share, as compared to net income of $4.1 million, or $0.13 per diluted share, in the same year-ago quarter. Net income margin improved 110 basis points to 24.3%.
Cash and cash equivalents totaled $24.6 million as of September 30, 2025, as compared to $28.2 million as of December 31, 2024. The change primarily reflects stock buybacks and a 25% increase in the quarterly dividends paid to shareholders. Armanino Foods remains debt free.
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 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, all 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 https://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 Litigations 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
AMNF@mzgroup.us
www.mzgroup.us
Armanino Foods of Distinction, Inc.
Balance Sheets
(Unaudited)
|
As of September 30, |
|
|
As of December 31, |
|
|||
|
2025 |
|
|
2024 |
|
|||
ASSETS |
|
|
|
|
|
|
||
CURRENT ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
24,645,925 |
|
|
$ |
28,164,307 |
|
Accounts receivable, net |
|
|
10,982,348 |
|
|
|
8,578,692 |
|
Inventories, net |
|
|
6,899,679 |
|
|
|
4,366,676 |
|
Prepaid expenses |
|
|
1,015,073 |
|
|
|
920,859 |
|
Total Current Assets |
|
|
43,543,025 |
|
|
|
42,030,534 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
8,443,070 |
|
|
|
7,922,595 |
|
Deposits |
|
|
20,000 |
|
|
|
20,000 |
|
Deferred tax assets |
|
|
1,063,936 |
|
|
|
1,063,936 |
|
Operating lease right of use asset |
|
|
859,388 |
|
|
|
1,364,468 |
|
Goodwill |
|
|
375,438 |
|
|
|
375,438 |
|
Trademarks |
|
|
75,576 |
|
|
|
75,576 |
|
Total Non-Current Assets |
|
|
10,837,408 |
|
|
|
10,822,013 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
54,380,433 |
|
|
$ |
52,852,547 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,992,434 |
|
|
$ |
2,010,649 |
|
Contract liabilities |
|
|
3,137,830 |
|
|
|
4,404,813 |
|
Accrued payroll and payroll taxes |
|
|
1,098,191 |
|
|
|
1,828,422 |
|
Phantom stock liability |
|
|
2,430,149 |
|
|
|
3,664,971 |
|
Operating lease liability - current portion |
|
|
692,107 |
|
|
|
649,738 |
|
Dividends payable |
|
|
1,555,246 |
|
|
|
1,158,101 |
|
Income taxes payable |
|
|
901,156 |
|
|
|
2,142,106 |
|
Total Current Liabilities |
|
|
14,807,113 |
|
|
|
15,858,800 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Operating lease liability, net of current portion |
|
|
242,085 |
|
|
|
810,583 |
|
Total Non-Current Liabilities |
|
|
242,085 |
|
|
|
810,583 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
15,049,198 |
|
|
|
16,669,383 |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Preferred Stock; no par value, 10,000,000 shares authorized, |
|
|
|
|
|
|
|
|
no shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Common Stock; no par value, 40,000,000 shares authorized, 32,065,645 shares |
|
|
|
|
|
|
|
|
issued at September 30, 2025 and December 31, 2024 and 31,078,007 and 31,903,600 |
|
|
|
|
|
|
|
|
shares outstanding at September 30, 2025 and December 31, 2024, respectively |
|
|
2,774,990 |
|
|
|
2,774,990 |
|
Treasury stock, at cost; 987,638 and 162,045 shares held at |
|
|
|
|
|
|
|
|
September 30, 2025, and December 31, 2024, respectively |
|
|
(7,548,811 |
) |
|
|
(1,072,033 |
) |
Additional paid-in capital |
|
|
180,202 |
|
|
|
48,202 |
|
Retained earnings |
|
|
43,924,854 |
|
|
|
34,432,005 |
|
Total Stockholders' Equity |
|
|
39,331,235 |
|
|
|
36,183,164 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
|
$ |
54,380,433 |
|
|
$ |
52,852,547 |
|
Armanino Foods of Distinction, Inc.
Income Statement
(Unaudited)
|
FOR THE THREE MONTHS ENDED |
|
FOR THE NINE MONTHS ENDED |
|
|||||||||
|
SEPTEMBER 30, |
|
SEPTEMBER 30, |
|
|||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|||||
NET SALES |
|
$ |
19,651,423 |
|
$ |
17,667,112 |
|
$ |
56,600,763 |
|
$ |
50,868,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD |
|
|
9,932,253 |
|
|
9,759,866 |
|
|
30,194,752 |
|
|
29,658,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
9,719,170 |
|
|
7,907,246 |
|
|
26,406,011 |
|
|
21,210,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
General, administrative and selling expense |
|
|
2,331,070 |
|
|
932,701 |
|
|
4,455,540 |
|
|
3,531,544 |
|
Salaries & wages |
|
|
871,088 |
|
|
1,496,825 |
|
|
3,471,250 |
|
|
4,010,882 |
|
Commissions |
|
|
353,340 |
|
|
253,303 |
|
|
994,352 |
|
|
774,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expense |
|
|
3,555,498 |
|
|
2,682,829 |
|
|
8,921,142 |
|
|
8,317,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS |
|
|
6,163,672 |
|
|
5,224,417 |
|
|
17,484,869 |
|
|
12,893,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income |
|
|
252,868 |
|
|
290,085 |
|
|
786,041 |
|
|
851,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
252,868 |
|
|
290,085 |
|
|
786,041 |
|
|
851,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
|
6,416,540 |
|
|
5,514,502 |
|
|
18,270,910 |
|
|
13,744,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAX EXPENSE - CURRENT |
|
|
1,643,316 |
|
|
1,411,772 |
|
|
4,710,656 |
|
|
3,518,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
$ |
4,773,224 |
|
$ |
4,102,730 |
|
$ |
13,560,254 |
|
$ |
10,225,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON AND EQUIVALENT SHARES: |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - BASIC |
|
$ |
0.1536 |
|
$ |
0.1280 |
|
$ |
0.4323 |
|
$ |
0.3189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING - BASIC |
|
|
31,084,864 |
|
|
32,052,356 |
|
|
31,369,873 |
|
|
32,061,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - DILUTED |
|
$ |
0.1535 |
|
$ |
0.1280 |
|
$ |
0.4321 |
|
$ |
0.3189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTSTANDING - DILUTED |
|
|
31,096,336 |
|
|
32,052,356 |
|
|
31,381,345 |
|
|
32,061,183 |
|
Armanino Foods of Distinction, Inc.
Statements of Cash Flows
(Unaudited)
|
FOR THE NINE MONTHS ENDED |
|
||||||
|
SEPTEMBER 30, |
|
||||||
|
2025 |
|
|
2024 |
|
|||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
||
Net Income |
|
$ |
13,560,254 |
|
|
$ |
10,225,474 |
|
Adjustments to reconcile net income |
|
|
|
|
|
|
|
|
to net cash provided by operations: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
921,439 |
|
|
|
470,023 |
|
Stock-based compensation |
|
|
132,000 |
|
|
|
- |
|
Operating lease expense |
|
|
505,080 |
|
|
|
474,292 |
|
Gain on sale of property and equipment |
|
|
(3,500 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(2,403,656 |
) |
|
|
(1,356,621 |
) |
Inventory |
|
|
(2,533,003 |
) |
|
|
(589,468 |
) |
Prepaid expenses |
|
|
(94,214 |
) |
|
|
296,313 |
|
Accounts payable |
|
|
2,981,785 |
|
|
|
1,262,146 |
|
Contract liabilities |
|
|
(1,266,983 |
) |
|
|
337,094 |
|
Phantom stock liability |
|
|
(1,234,822 |
) |
|
|
940,432 |
|
Accrued payroll and payroll taxes |
|
|
(730,231 |
) |
|
|
(288,608 |
) |
Income taxes payable |
|
|
(1,240,950 |
) |
|
|
(48,733 |
) |
Operating lease liability |
|
|
(526,129 |
) |
|
|
(485,146 |
) |
Net Cash Provided by Operating Activities |
|
|
8,067,070 |
|
|
|
11,237,198 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(1,441,914 |
) |
|
|
(2,136,388 |
) |
Proceeds from sale of property and equipment |
|
|
3,500 |
|
|
|
- |
|
Net Cash Used in Investing Activities |
|
|
(1,438,414 |
) |
|
|
(2,136,388 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
Purchase of treasury stock |
|
|
(6,476,778 |
) |
|
|
(382,852 |
) |
Dividends paid |
|
|
(3,670,260 |
) |
|
|
(6,592,697 |
) |
Net Cash Used in Financing Activities |
|
|
(10,147,038 |
) |
|
|
(6,975,549 |
) |
|
|
|
|
|
|
|
|
|
Net Change in Cash and Cash Equivalents |
|
|
(3,518,382 |
) |
|
|
2,125,261 |
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at Beginning of Period |
|
|
28,164,307 |
|
|
|
22,177,386 |
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at End of Period |
|
$ |
24,645,925 |
|
|
$ |
24,302,647 |
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures of Cash Flow Information: |
|
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
- |
|
|
$ |
- |
|
Income Taxes |
|
$ |
3,704,400 |
|
|
$ |
2,719,831 |
|
SOURCE: Armanino Foods of Distinction, Inc.
View the original press release on ACCESS Newswire