The Marzetti Company (MZTI)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.87% | 23.10% | 21.32% | 21.22% | 26.36% |
| Operating profit margin | 11.54% | 10.65% | 7.76% | 6.68% | 12.67% |
| Pretax margin | 11.18% | 10.98% | 7.86% | 6.70% | 12.66% |
| Net profit margin | 8.77% | 8.47% | 6.11% | 5.34% | 9.70% |
The analysis of The Marzetti Company's profitability ratios over the specified period reveals notable trends and shifts in profit margins.
Starting with the gross profit margin, there was a decline from 26.36% in June 2021 to a low of 21.22% in June 2022, indicating a reduction in the company's ability to control cost of goods sold relative to sales. However, subsequent data shows a modest recovery, with margins increasing slightly to 21.32% in June 2023, followed by a steady upward trend to 23.10% in June 2024 and 23.87% in June 2025. This suggests an ongoing improvement in gross profitability, possibly due to cost management or pricing strategies.
The operating profit margin experienced a sharp decline from 12.67% in June 2021 to 6.68% in June 2022, signaling increased operating expenses or inefficiencies impacting operating profitability. Nonetheless, there has been a recovery thereafter, with margins rising to 7.76% in June 2023, and further strengthening to 10.65% in June 2024 and 11.54% in June 2025. The upward trend indicates enhanced operational efficiency or improved cost controls.
Similarly, the pretax margin declined sharply from 12.66% in June 2021 to 6.70% in June 2022, reflecting the same underlying challenges affecting operating margins. The margin then recovered to 7.86% in June 2023 and continued an upward trajectory to 10.98% in June 2024 and 11.18% in June 2025, paralleling the trend seen in operating margins and pointing to overall improvements in pre-tax profitability.
The net profit margin followed a comparable pattern, decreasing from 9.70% in June 2021 to 5.34% in June 2022, before recovering to 6.11% in June 2023, then consistently increasing to 8.47% in June 2024 and reaching 8.77% in June 2025. The margin expansion indicates enhanced bottom-line profitability resulting from better cost management, improved operational performance, or favorable tax conditions.
In summary, while The Marzetti Company experienced a significant decline in profitability margins in the fiscal year ending June 2022, the subsequent years have demonstrated a consistent improvement across all profitability ratios. The recent upward trends in gross, operating, pretax, and net profit margins suggest a positive shift in the company's ability to generate profits relative to sales, highlighting effective strategies in cost control and operational efficiency during the latter part of the analyzed period.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.28% | 16.52% | 12.71% | 10.26% | 16.88% |
| Return on assets (ROA) | 13.13% | 13.14% | 10.00% | 8.22% | 12.92% |
| Return on total capital | 22.58% | 23.14% | 19.31% | 17.00% | 21.51% |
| Return on equity (ROE) | 16.76% | 17.13% | 12.91% | 10.61% | 16.88% |
The profitability ratios of The Marzetti Company over the analyzed period reflect notable fluctuations and trends in the company's ability to generate earnings relative to its assets, capital, and equity.
Starting with the Operating Return on Assets (Operating ROA), there was a decline from 16.88% on June 30, 2021, to a low point of 10.26% on June 30, 2022. This suggests a reduction in operating efficiency or profitability during that period. Subsequently, the Operating ROA improved to 12.71% in June 2023, indicating some recovery in operational effectiveness. Further positive movement was observed in June 2024 and 2025, with values of 16.52% and 17.28%, respectively, marking a restoration to levels comparable to or exceeding the 2021 figure. This trend suggests an overall recovery and improvement in the company's core operations over the recent years.
The Return on Assets (ROA), which considers total asset efficiency, mirrors a similar pattern. It decreased from 12.92% in 2021 to 8.22% in 2022, reflecting diminished overall asset profitability. The ratio then increased to 10.00% in June 2023 and continued upward to reach 13.14% in 2024 and stabilizing slightly at 13.13% in 2025. This indicates a recovery in overall asset utilization and profitability, culminating in a return to higher efficiency levels.
Return on Total Capital demonstrates a downward trend from 21.51% in 2021 to 17.00% in 2022, followed by an upward movement to 19.31% in 2023. The ratio continued its positive trajectory, reaching 23.14% in 2024 and slightly declining to 22.58% in 2025. These figures indicate an overall enhancement in the company's ability to generate returns from all sources of capital employed, with a noticeable peak in 2024.
The Return on Equity (ROE) experienced a similar pattern. It declined from 16.88% in 2021 to 10.61% in 2022, reflecting reduced profitability attributable to shareholders. Subsequently, ROE increased to 12.91% in 2023 and further to 17.13% in 2024, slightly decreasing to 16.76% in 2025. The recovery in ROE indicates improved profitability margins attributable to equity holders and suggests effective management of shareholders’ investments over the latter part of the period.
In summary, The Marzetti Company experienced a decline in profitability ratios in 2022, followed by progressive recovery through 2023, 2024, and 2025. The trends indicate that while there was a period of diminished profitability, recent years have demonstrated an overall positive trajectory in operational efficiency, asset utilization, and return generation for both total capital and shareholders’ equity.