Armanino Foods Achieves Record-Breaking First Quarter Profit
Armanino Foods of Distinction, Inc. (OTCQX: AMNF), a leading international food manufacturer, has announced its highest-ever quarterly profits for the first quarter ending March 31, 2025. The company saw significant growth across multiple financial metrics, reflecting its continued efforts to strengthen its market position and improve operational efficiency.
Strong Sales Growth and Increased Profitability
For the first quarter of 2025, Armanino reported net sales of $16,978,865, an 8% increase from the $15,720,317 recorded in the same period of 2024. This growth in revenue was driven by the company’s ongoing commitment to expanding its customer base and increasing the reach of its core product offerings into new markets.
The company also reported a substantial increase in profitability, with income before taxes rising to $5,290,611, up 70% compared to $3,115,981 in the first quarter of 2024. This surge in pre-tax income demonstrates the impact of Armanino’s successful cost-saving initiatives and operational improvements.
Net income for Q1 2025 reached $3,936,215, or $0.1243 per share, representing a 70% increase from $2,318,160, or $0.0723 per share, in the same quarter last year. This notable rise in net income was further enhanced by the company’s strategic buyback of 385,177 shares of common stock during the quarter. The reduction in shares outstanding contributed to a 72% increase in earnings per share.
Cash Flow and Shareholder Returns
Armanino’s working capital as of March 31, 2025, stood at $25,510,009, slightly lower than the $26,138,978 recorded at the end of 2024. This 2% decrease in working capital was a result of the company’s decision to return more cash to shareholders through higher dividends and stock repurchases, which were part of Armanino’s ongoing commitment to delivering shareholder value.
In addition to its strong financial results, the company maintained a disciplined approach to capital management, balancing the needs for reinvestment in the business with its goal of providing shareholder returns.
Strategic Focus on Operational Excellence
Edgar Estonina, Armanino’s CFO and acting President and CEO, attributed the company’s record financial results to a combination of factors, including margin improvement, enhanced sales strategies, and greater operational efficiencies. Estonina emphasized that the company’s focus on acquiring new customers and expanding sales in existing markets was pivotal to the positive financial performance.
In addition, operational efficiencies contributed to better procurement of raw materials, which helped maintain healthy margins. The company also benefitted from a significant reduction in phantom stock compensation expenses, a non-cash adjustment that reversed the elevated levels recorded in the previous year. The after-tax benefit from this adjustment played a key role in improving SG&A (Selling, General, and Administrative expenses) as a percentage of sales, further boosting overall profitability.
Estonina remarked, “We continue to shatter our year-over-year performance thanks to our margin improvement efforts. We have remained disciplined in executing our sales strategies, including the acquisition of new customers and the expansion of our core product lines into new markets. Furthermore, the year-over-year improvements in operational efficiencies, coupled with better procurement of raw materials, have significantly contributed to our success.”
Employee Appreciation and Resilience Amid Transition
Douglas Nichols, Chairman of the Board, praised the company’s employees for their outstanding performance during a period of significant transition. Despite the challenges associated with the appointment of a new CEO and the engagement of a PCAOB-registered independent auditor, Armanino’s team remained focused and delivered record-breaking results. Nichols particularly highlighted the leadership of Edgar Estonina and the collective efforts of the accounting, sales, and production teams.
“The dedication and resilience of our team reflect the strength of Armanino’s culture and operational excellence,” Nichols stated. “We are extremely proud of the results they have achieved, and we are confident that the company’s continued focus on innovation and operational efficiency will lead to sustained growth in the future.”
Cautious Outlook Amid Market Uncertainty
Despite the record financial performance, Estonina remains cautious about the near-term outlook, citing potential challenges in the broader business environment. In particular, he noted signs of a slowdown in the restaurant industry, a key market for Armanino’s products. The company is closely monitoring global economic trends, including potential impacts from U.S. and international tariffs.
Estonina emphasized that Armanino is taking proactive measures to mitigate these risks, focusing on further improving operational efficiencies and maintaining a competitive pricing strategy for supplies and raw materials. He also indicated that the company remains committed to making strategic investments to drive sales growth, with a focus on new products, expanding into new markets, operational efficiencies, and potential acquisitions.
“We are confident in the company’s financial position, but we recognize the need to remain vigilant as we navigate the challenges ahead,” Estonina said. “Our primary goal remains to continue growing the business while maintaining a lean, cost-effective operational structure.”
About Armanino Foods of Distinction, Inc.
Armanino Foods of Distinction, Inc. is a leading manufacturer and marketer of frozen Italian specialty food items, serving the foodservice, retail, and industrial markets worldwide. The company’s product portfolio includes a wide range of frozen pestos, sauces, and filled pastas, with flavors such as classic Basil Pesto, Cilantro, Roasted Red Bell Pepper, Southwest Chipotle, Artichoke, Roasted Garlic, and Chimichurri. Armanino also offers a selection of organic pesto options, cheese shakers, frozen pastas, meatballs, and prepared meals.
As a company committed to quality and innovation, Armanino Foods continues to strengthen its position in the market by delivering high-quality products to customers and expanding its product offerings to meet evolving consumer preferences.
