From Nasdaq: 2025-06-03 18:35:00

Mama’s Creations reported record quarterly revenue and profitability, driven by volume gains and increased trade and marketing investment. Over half of FY2026 chicken needs have been hedged with fixed-price contracts for margin stability. Efficiency initiatives improved labor productivity, reduced overtime, and increased yields. Strategic capital allocation focuses on M&A opportunities, with no major new projects planned for FY2026. New distribution agreements and expanded placements are driving future revenue growth, especially among millennial and Gen Z buyers. CFO Gruber highlighted record operating cash flow of $6 million and increased trade promotion spend to maximize brand growth and profitability.

Adjusted EBITDA for Q1 FY2026 was $2.8 million, up 12% year over year, with $12 million in cash and equivalents as of April 30, 2025. Total debt reduced to $4.6 million from $8.3 million the previous year. Operational efficiency improvements, including labor reduction and tumbling processes, are enhancing margins. Trade promotion spend reached 6% of gross revenue, driving national marketing visibility and profit expansion at key accounts. New customer commitments with major retailers reflect expanded placements and product offerings. Warehouse management systems have improved inventory visibility and working capital use, with no major capital projects planned for FY2026. M&A focus remains on branded deli manufacturing targets, with a balanced geographic distribution strategy.

The quarterly earnings call provided insight into revenue growth, operational improvements, and strategic priorities. Management emphasized sustained momentum in market share gains, increased trade promotion investment, and efficiency gains. Gross margin improvements to 26.1% were achieved alongside record trade promotion investment at 6% of gross revenue. Operational enhancements, including labor productivity, tumbling processes, and procurement strategies, are driving margin stability and profitability. The focus on strategic capital allocation, M&A opportunities, and national distribution partnerships positions Mama’s Creations for continued growth and market share expansion.



Read more at Nasdaq: Mama’s Creations MAMA Q1 2026 Earnings Transcript