Mama’s Creations Reports Third Quarter Fiscal 2025 Financial Results
Mama's Creations (NASDAQ: MAMA) reported Q3 fiscal 2025 results with revenues increasing 10% to $31.5 million. However, gross profit declined 17.6% to $7.1 million, and net income decreased 79.6% to $0.4 million. The company faced challenges including construction disruptions at its Farmingdale facility, impacting gross margins by 400 basis points.
Key developments include completion of strategic CapEx projects, appointments of Chris Darling as Chief Commercial Officer and Skip Tappan as Chief Operating Officer. Cash position stood at $9.3 million as of October 31, 2024, down from $11.0 million in January 2024, primarily due to $5.0 million in capital investments and $2.5 million in debt paydown.
Mama's Creations (NASDAQ: MAMA) ha riportato i risultati del terzo trimestre fiscale 2025 con un aumento dei ricavi del 10%, raggiungendo 31,5 milioni di dollari. Tuttavia, il profitto lordo è diminuito del 17,6%, scendendo a 7,1 milioni di dollari, mentre l'utile netto è diminuito del 79,6%, a 0,4 milioni di dollari. L'azienda ha affrontato sfide tra cui interruzioni nella costruzione della sua struttura a Farmingdale, che hanno avuto un impatto sui margini lordi di 400 punti base.
Sviluppi chiave includono il completamento di progetti strategici di CapEx, le nomine di Chris Darling come Chief Commercial Officer e Skip Tappan come Chief Operating Officer. Posizione di liquidità ha raggiunto 9,3 milioni di dollari al 31 ottobre 2024, in calo rispetto agli 11,0 milioni di dollari di gennaio 2024, principalmente a causa di 5,0 milioni di dollari in investimenti di capitale e 2,5 milioni di dollari in rimborso del debito.
Mama's Creations (NASDAQ: MAMA) informó los resultados del tercer trimestre fiscal 2025 con un aumento del 10% en los ingresos, alcanzando 31,5 millones de dólares. Sin embargo, la ganancia bruta disminuyó un 17,6%, a 7,1 millones de dólares, y la renta neta cayó un 79,6%, a 0,4 millones de dólares. La empresa enfrentó desafíos, incluidos los disturbios en la construcción de su instalación en Farmingdale, lo que impactó los márgenes brutos en 400 puntos base.
Desarrollos clave incluyen la finalización de proyectos estratégicos de CapEx, la designación de Chris Darling como Chief Commercial Officer y Skip Tappan como Chief Operating Officer. La posición de efectivo se situó en 9,3 millones de dólares al 31 de octubre de 2024, en comparación con los 11,0 millones de dólares de enero de 2024, principalmente debido a 5,0 millones de dólares en inversiones de capital y 2,5 millones de dólares en pago de deudas.
마마스 크리에이션스 (NASDAQ: MAMA)는 2025 회계연도 3분기 실적을 발표했으며, 수익이 10% 증가하여 3,150만 달러에 달했습니다. 하지만, 총 이익은 17.6% 감소하여 710만 달러에 이르렀고, 순이익은 79.6% 감소하여 40만 달러로 줄어들었습니다. 회사는 Farmindale 시설의 건설 중단 등 도전에 직면했으며, 이는 총 마진을 400 베이시스 포인트 감소시켰습니다.
주요 발전 사항으로는 전략적 CapEx 프로젝트 완료, 크리스 달링을 최고 상업 책임자로, 스킵 타판을 최고 운영 책임자로 임명한 내용이 있습니다. 2024년 10월 31일 기준 현금 보유액은 930만 달러로, 2024년 1월의 1,100만 달러에서 감소했으며, 이는 주로 500만 달러의 자본 투자와 250만 달러의 부채 상환 때문입니다.
Mama's Creations (NASDAQ: MAMA) a annoncé les résultats du troisième trimestre fiscal 2025, avec des revenus en hausse de 10%, atteignant 31,5 millions de dollars. Toutefois, le bénéfice brut a chuté de 17,6%, pour atteindre 7,1 millions de dollars, et le résultat net a diminué de 79,6%, à 0,4 million de dollars. L'entreprise a rencontré des défis, notamment des disruptions de construction à son installation de Farmingdale, impactant les marges brutes de 400 points de base.
Les développements clés comprennent l'achèvement de projets stratégiques de CapEx, ainsi que la nomination de Chris Darling au poste de Chief Commercial Officer et de Skip Tappan en tant que Chief Operating Officer. La position de liquidité s'élevait à 9,3 millions de dollars au 31 octobre 2024, en baisse par rapport à 11,0 millions de dollars en janvier 2024, principalement en raison de 5,0 millions de dollars d'investissements en capital et de 2,5 millions de dollars de remboursement de dettes.
Mama's Creations (NASDAQ: MAMA) hat die Ergebnisse des dritten Quartals des Geschäftsjahres 2025 veröffentlicht, mit einem Anstieg der Einnahmen um 10% auf 31,5 Millionen Dollar. Der Bruttogewinn sank jedoch um 17,6% auf 7,1 Millionen Dollar, und der Nettogewinn verringerte sich um 79,6% auf 0,4 Millionen Dollar. Das Unternehmen sah sich Herausforderungen gegenüber, darunter Bauverzögerungen an der Anlage in Farmingdale, die die Bruttomargen um 400 Basispunkte belasteten.
Zu den wichtigsten Entwicklungen gehören die Fertigstellung strategischer CapEx-Projekte sowie die Ernennungen von Chris Darling zum Chief Commercial Officer und Skip Tappan zum Chief Operating Officer. Die Liquiditätsposition betrug am 31. Oktober 2024 9,3 Millionen Dollar, ein Rückgang von 11,0 Millionen Dollar im Januar 2024, hauptsächlich aufgrund von 5,0 Millionen Dollar in Investitionen und 2,5 Millionen Dollar bei der Tilgung von Schulden.
- Revenue growth of 10% to $31.5 million
- 23.7% year-over-year increase in Q3 cash flow from operations
- 90 basis point improvement in freight efficiency
- Preliminary November gross margins show reversal of construction headwinds
- Net income declined 79.6% to $0.4 million
- Gross profit decreased 17.6% to $7.1 million
- Operating expenses increased 10.5% to $6.6 million
- Adjusted EBITDA dropped 49.6% to $1.7 million
- Cash position decreased from $11.0M to $9.3M
Insights
Third Quarter Revenues Increase
EAST RUTHERFORD, NJ, Dec. 16, 2024 (GLOBE NEWSWIRE) -- Mama’s Creations, Inc. (NASDAQ: MAMA), a leading national marketer and manufacturer of fresh deli prepared foods, has reported its financial results for the third quarter ended October 31, 2024.
Financial Summary:
| Three Months Ended October 31, | ||||||||||||
| $ in millions | 2024 | 2023 | % Change | |||||||||
| Revenues | $ | 31.5 | $ | 28.7 | 10.0 | % | ||||||
| Gross Profit | $ | 7.1 | $ | 8.6 | (17.6 | %) | ||||||
| Operating Expenses | $ | 6.6 | $ | 5.9 | 10.5 | % | ||||||
| Net Income | $ | 0.4 | $ | 2.0 | (79.6 | %) | ||||||
| Earnings per Share (Diluted) | $ | 0.01 | $ | 0.05 | (80.0 | %) | ||||||
| Adj. EBITDA (non-GAAP) | $ | 1.7 | $ | 3.5 | (49.6 | %) | ||||||
Third Quarter Fiscal 2025 & Subsequent Operational Highlights:
- Following completion of strategic CapEx projects in September 2024, the company achieved a sequential step change in the preliminary unaudited gross margin profile in November 2024, which indicates a full reversal of the ~400 basis points of construction headwinds with significant room for further improvement.
- Completed build-out of industry-leading senior management team with the appointments of veteran CPG and Retail executive Chris Darling as Chief Commercial Officer and end-to-end supply chain leader Moore (Skip) Tappan to the role of Chief Operating Officer.
- Participated and exhibited at leading industry trade shows, including the 2024 UNFI Holiday & Winter Show and 2024 National Association of Convenience Stores (NACS) Show.
- Invited to present at leading investor conferences nationally, including the Raymond James Small Cap Summit, 15th Annual Craig-Hallum Alpha Select Conference, and 13th Annual ROTH Deer Valley Event.
- Cash and cash equivalents as of October 31, 2024 were
$9.3 million , as compared to$11.0 million as of January 31, 2024. The change in cash and cash equivalents was primarily driven by$5.0 million in capital investments and$2.5 million of debt paydown during the quarter, largely offset by working capital improvements as third quarter cash flow from operations increased23.7% year-over-year.
Management Commentary
“We delivered a robust
“As part of our continued focus on our 4 Cs – Cost, Controls, Culture and Catapult – during the third quarter we focused on implementing automation and operational efficiency improvements across the organization. This included the aforementioned CapEx investments that were completed in September, improvements in chicken trimming capabilities as well as labor cost savings through a new lower-overtime staffing model that will be fully implemented in December, and additional procurement efficiencies and recent upgrades to our existing grills that will drive meaningful improvements in throughput. When taken together, we expect to see a materially stronger go-forward margin profile more in-line with historical norms.
“To lead us forward and emerge as a dominant player in the prepared foods space, we also completed the build-out of our industry-leading executive team during the quarter. Chris Darling, our new Chief Commercial Officer, brings over 20 years of experience in executive leadership from a storied career in the deli – where he led world class commercial organizations at industry-leading firms such as Boar’s Head, HEB, Ahold and Albertsons. Most importantly, Chris knows how to build a national brand, particularly in the prepared meal solutions space. Chris joins Skip Tappan, our Chief Operating Officer, an end-to-end supply chain leader, bringing over 30 years of experience with Gordon Food Service, Walmart, Campbell’s and Procter & Gamble. With this world-class leadership team now in place, we are better positioned to fully optimize operations, execute on our Catapult growth plan and identify, acquire and integrate future M&A opportunities.
“The fundamentals of our operations are incredibly strong, and with these growing pains behind us – supplemented by our investments in CapEx, senior leadership, and marketing – have enabled our team to sell with confidence and fulfill pent-up demand as we enter the new year. Ultimately, I believe this will support a return to the high end of our historical margin profile. Combined with a reversal of recent commodity highs and strong November results, we believe we are well positioned for profitable growth in the months and years ahead,” concluded Michaels.
Third Quarter Fiscal 2025 Financial Results
Revenue for the third quarter of fiscal 2025 increased
Gross profit totaled
Operating expenses were
Net income for the third quarter of fiscal 2025 totaled
Adjusted EBITDA, a non-GAAP measure, totaled
Cash and cash equivalents as of October 31, 2024 totaled
Conference Call
Management will host an investor conference call at 4:30 p.m. Eastern time today, Monday, December 16, 2024, to discuss the Company’s third quarter fiscal 2025 financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate, please use the following information:
Q3 FY2025 Earnings Conference Call
Date: Monday, December 16, 2024
Time: 4:30 p.m. Eastern time
U.S. Dial-in: 1-877-451-6152
International Dial-in: 1-201-389-0879
Conference ID: 13749939
Webcast: MAMA Q3 FY2025 Earnings Conference Call
Please join at least five minutes before the start of the call to ensure timely participation.
A playback of the call will be available through Thursday, January 16, 2024. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13749939. A webcast replay will also be available using the webcast link above.
About Mama’s Creations, Inc.
Mama’s Creations, Inc. (NASDAQ: MAMA) is a leading marketer and manufacturer of fresh deli prepared foods, found in over 8,000 grocery, mass, club and convenience stores nationally. The Company’s broad product portfolio, born from MamaMancini’s rich history in Italian foods, now consists of a variety of high quality, fresh, clean and easy to prepare foods to address the needs of both our consumers and retailers. Our vision is to become a one-stop-shop deli solutions platform, leveraging vertical integration and a diverse family of brands to offer a wide array of prepared foods to meet the changing demands of the modern consumer. For more information, please visit https://mamascreations.com.
Use of Non-GAAP Financial Measures
This press release includes the following non-GAAP measure – Adjusted EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation and amortization adjusted for stock-based compensation and one-time costs associated with a legal settlement. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company’s results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company’s business as determined in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. A reconciliation of Adjusted EBITDA to net income, its corresponding GAAP measure, is shown below.
GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(in thousands)
| THREE MONTHS ENDED | ||||||||
| 31-Oct-24 | ||||||||
| 2024 | 2023 | |||||||
| Net Income | $ | 410 | $ | 2,009 | ||||
| Depreciation | 451 | 255 | ||||||
| Amortization | 388 | 388 | ||||||
| Taxes | 128 | 568 | ||||||
| Interest, net | 83 | 124 | ||||||
| Share Based Compensation | 280 | 110 | ||||||
| Adjusted EBITDA (Non-GAAP) | $ | 1,740 | $ | 3,454 | ||||
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include information about management’s view of the Company’s future expectations, plans and prospects, including future business opportunities or strategies and are generally preceded by words such as “may,” “believe,” “future,” “plan” or “planned,” “will” or “should,” “expect,” “anticipates,” “eventually” or “projected.” You are cautioned that such statements are subject to a multitude of known and unknown risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors , including the impacts of public health emergencies, such as the COVID-19 pandemic, on our business, financial condition and results of operations, and our inability to mitigate such impacts; the adequacy of our liquidity to pursue our business objectives; reliance on a limited number of customers; loss or retirement of key executives, including prior to identifying a successor; adverse economic conditions or intense competition; pricing pressures in the market and lack of control over the pricing of raw materials and freight; entry of new competitors and products; adverse federal, state and local government regulation (including, but not limited to, the Food and Drug Administration); liability related to the consumption of our products ability to secure placement of our products in key retail locations; wage and price inflation; maintenance of quality control; and issues related to the enforcement of our intellectual property rights, and other risks identified in the Company’s 10-K for the fiscal year ended January 31, 2024 and other filings made by the Company with the Securities and Exchange Commission.
Investor Relations Contact:
Lucas A. Zimmerman
Managing Director
MZ Group – MZ North America
(949) 259-4987
MAMA@mzgroup.us
www.mzgroup.us
Mama’s Creations, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
| October 31, 2024 | January 31, 2024 | |||||||
| (Unaudited) | ||||||||
| Assets: | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 9,319 | $ | 11,022 | ||||
| Accounts receivable, net | 8,567 | 7,859 | ||||||
| Inventories, net | 3,190 | 3,310 | ||||||
| Prepaid expenses and other current assets | 929 | 1,375 | ||||||
| Total Current Assets | 22,005 | 23,566 | ||||||
| Property, plant, and equipment, net | 9,849 | 4,436 | ||||||
| Intangible assets, net | 3,822 | 4,979 | ||||||
| Goodwill | 8,633 | 8,633 | ||||||
| Operating lease right of use assets, net | 3,080 | 2,889 | ||||||
| Deferred tax asset | 413 | 503 | ||||||
| Deposits | 95 | 95 | ||||||
| Total Assets | $ | 47,897 | $ | 45,101 | ||||
| Liabilities and Stockholders’ Equity: | ||||||||
| Liabilities: | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 13,845 | $ | 12,425 | ||||
| Term loan, net of unamortized debt discount of | 1,527 | 1,514 | ||||||
| Operating lease liabilities | 844 | 434 | ||||||
| Finance leases payable | 369 | 367 | ||||||
| Promissory notes – related parties | 2,250 | 1,950 | ||||||
| Total Current Liabilities | 18,835 | 16,690 | ||||||
| Line of credit | — | — | ||||||
| Term loan – net of current | 1,730 | 3,003 | ||||||
| Operating lease liabilities – net of current | 2,309 | 2,515 | ||||||
| Finance leases payable – net of current | 1,275 | 1,062 | ||||||
| Promissory note – related party, net of current | 750 | 2,250 | ||||||
| Total long-term liabilities | 6,064 | 8,830 | ||||||
| Total Liabilities | 24,899 | 25,520 | ||||||
| Commitments and contingencies (Notes 9 and 10) | ||||||||
| Stockholders’ Equity: | ||||||||
| Series A Preferred stock, | - | - | ||||||
| Series B Preferred stock, | - | - | ||||||
| Preferred stock, | - | - | ||||||
| Common stock, | - | - | ||||||
| Additional paid-in capital | 24,584 | 23,278 | ||||||
| Accumulated deficit | (1,436 | ) | (3,547 | ) | ||||
| Less: Treasury stock, 230,000 shares at cost | (150 | ) | (150 | ) | ||||
| Total Stockholders’ Equity | 22,998 | 19,581 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 47,897 | $ | 45,101 | ||||
Mama’s Creations, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
| For the Three Months Ended October 31, | For the Nine Months Ended October 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 31,523 | $ | 28,648 | $ | 89,743 | $ | 76,559 | ||||||||
| Costs of sales | 24,410 | 20,013 | 68,288 | 54,047 | ||||||||||||
| Gross profit | 7,113 | 8,635 | 21,455 | 22,512 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 155 | 124 | 352 | 290 | ||||||||||||
| Selling, general and administrative expenses | 6,395 | 5,804 | 18,155 | 15,297 | ||||||||||||
| Total operating expenses | 6,550 | 5,928 | 18,507 | 15,587 | ||||||||||||
| Income from operations | 563 | 2,707 | 2,948 | 6,925 | ||||||||||||
| Other income (expenses) | ||||||||||||||||
| Interest expense | (120 | ) | (124 | ) | (369 | ) | (483 | ) | ||||||||
| Interest income | 37 | — | 192 | — | ||||||||||||
| Amortization of debt discount | (3 | ) | (6 | ) | (13 | ) | (17 | ) | ||||||||
| Other income | 61 | — | 61 | 27 | ||||||||||||
| Total other expenses | (25 | ) | (130 | ) | (129 | ) | (473 | ) | ||||||||
| Net income before income tax provision and income from equity method investment | 538 | 2,577 | 2,819 | 6,452 | ||||||||||||
| Income from equity method investment | — | — | — | 223 | ||||||||||||
| Income tax expense | (128 | ) | (568 | ) | (708 | ) | (1,522 | ) | ||||||||
| Net income | $ | 410 | $ | 2,009 | $ | 2,111 | $ | 5,153 | ||||||||
| Less: series B preferred dividends | — | — | — | (49 | ) | |||||||||||
| Net income available to common stockholders | $ | 410 | $ | 2,009 | $ | 2,111 | $ | 5,104 | ||||||||
| Net income per common share | ||||||||||||||||
| – basic | $ | 0.01 | $ | 0.05 | $ | 0.06 | $ | 0.14 | ||||||||
| – diluted | $ | 0.01 | $ | 0.05 | $ | 0.05 | $ | 0.14 | ||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| – basic | 37,373 | 37,121 | 37,522 | 36,642 | ||||||||||||
| – diluted | 39,293 | 37,646 | 39,410 | 37,088 | ||||||||||||
Mama’s Creations, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
| For the Nine Months Ended October 31, | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 2,111 | $ | 5,153 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 1,057 | 767 | ||||||
| Amortization of debt discount | 13 | 17 | ||||||
| Amortization of right of use assets | (167 | ) | 221 | |||||
| Amortization of intangibles | 1,156 | 692 | ||||||
| Stock-based compensation | 801 | 220 | ||||||
| Allowance for obsolete inventory | - | 78 | ||||||
| Change in deferred tax asset | 90 | 299 | ||||||
| Income from equity method investment | - | (223 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Allowance for credit losses | - | 140 | ||||||
| Accounts receivable | (708 | ) | (1,170 | ) | ||||
| Inventories | 120 | 986 | ||||||
| Prepaid expenses and other current assets | (491 | ) | (179 | ) | ||||
| Security deposits | - | (35 | ) | |||||
| Accounts payable and accrued expenses | 1,872 | (1,851 | ) | |||||
| Operating lease liability | 180 | (237 | ) | |||||
| Net Cash Provided by Operating Activities | 6,034 | 4,878 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of fixed assets | (5,022 | ) | (671 | ) | ||||
| Cash paid for investment in Chef Inspirational Foods, LLC, net | - | (646 | ) | |||||
| Net Cash (Used in) Investing Activities | (5,022 | ) | (1,317 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repayment of term loan | (1,274 | ) | (1,265 | ) | ||||
| Repayment of line of credit, net | - | (890 | ) | |||||
| Repayment of related party note | (1,200 | ) | - | |||||
| Repayment of finance lease obligations | (296 | ) | (175 | ) | ||||
| Payment of Series B Preferred dividends | - | (49 | ) | |||||
| Proceeds from exercise of stock options | 55 | 65 | ||||||
| Net Cash (Used in) Financing Activities | (2,715 | ) | (2,314 | ) | ||||
| Net (Decrease) Increase in Cash | (1,703 | ) | 1,247 | |||||
| Cash and cash equivalents at beginning of period | 11,022 | 4,378 | ||||||
| Cash and cash equivalents at end of period | $ | 9,319 | $ | 5,625 | ||||
| SUPPLEMENTARY CASH FLOW INFORMATION: | ||||||||
| Cash paid during the period for: | ||||||||
| Income taxes | $ | 947 | $ | 112 | ||||
| Interest | $ | 329 | $ | 477 | ||||
| SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Conversion of series B preferred stock to common stock | $ | - | $ | - | ||||
| Finance lease asset additions | $ | 511 | $ | 1,297 | ||||
| Right of use asset recognized | $ | 873 | $ | - | ||||
| Write-off of right of use asset | $ | 897 | $ | - | ||||
| Related party debt incurred for purchase of Chef Inspirational Foods, LLC | $ | - | $ | 2,700 | ||||
| Settlement of liability in common stock | $ | - | $ | 50 | ||||
| Issuance of stock for director settlement | $ | 450 | $ | - | ||||
| Receipt of fixed assets for deposits previously paid | $ | 937 | $ | - | ||||
FAQ
What was MAMA's revenue growth in Q3 fiscal 2025?
How did MAMA's gross margins perform in Q3 2025?
What strategic investments did MAMA make in Q3 2025?
What caused MAMA's net income decline in Q3 2025?
How much debt did MAMA have as of October 31, 2024?
