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Apr 30, 2024
Mamas Creations Q1 2025 Earnings Report
Reported a 29% increase in first quarter revenues to a record $29.8 million, driven by purposeful and profitable growth.
Key Takeaways
Mama's Creations reported a strong first quarter with a 29% increase in revenue to a record $29.8 million. The company generated $3.6 million in cash flow from operations and maintained a mid-20% gross margin profile despite commodity price increases.
Revenue increased by 29% to a record $29.8 million compared to the same quarter last year.
Gross profit increased by 17% to $7.5 million, representing 25.0% of total revenues.
Cash and cash equivalents increased to $13.0 million, driven by $3.6 million in cash flow from operations.
Net income totaled $0.6 million, or $0.01 per diluted share, impacted by a one-time charge of $0.9 million.
Mamas Creations
Mamas Creations
Forward Guidance
The company anticipates that price increases and efficiency gains from recent CapEx investments will offset much of the anticipated impact on gross margin in the second quarter. They aim to invest surplus gross margin into trade promotion to drive further revenue growth.
Positive Outlook
- Price increases are expected to offset much of the impact on gross margin.
- Efficiency gains through CapEx investments are expected to improve chicken processing capabilities.
- Surplus gross margin will be invested into trade promotion to drive revenue growth.
- The company was selected to participate in a 'Costco Roadshow' in the Northeast Region.
- Attractively priced M&A opportunities in the industry could enable the company to become a consolidator.
Challenges Ahead
- Commodity price increases, particularly chicken, impacted the gross margin profile.
- Net income was impacted by a $0.9M one-time charge.
- Operating expenses increased due to the addition of key hires and increased non-cash expenses.
- There is reliance on a limited number of customers.
- There are pricing pressures in the market and lack of control over the pricing of raw materials and freight.