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Oct 31, 2024

Mamas Creations Q3 2025 Earnings Report

Reported a 10% revenue increase and completed strategic CapEx projects.

Key Takeaways

Mama's Creations reported a 10% increase in revenue to $31.5 million for the third quarter of fiscal year 2025. Gross profit was impacted by construction-related disruptions and increased chicken prices. The company completed CapEx investments and added new senior leadership to position itself for future growth.

Revenue increased by 10% to $31.5 million compared to the same quarter last year.

Gross profit was $7.1 million, or 22.6% of total revenues, compared to $8.6 million, or 30.1% of total revenues, in the same quarter last year.

Net income totaled $0.4 million, or $0.01 per diluted share, compared to $2.0 million, or $0.05 per diluted share, in the same quarter last year.

Cash and cash equivalents totaled $9.3 million as of October 31, 2024.

Total Revenue
$31.5M
Previous year: $28.6M
+10.0%
EPS
$0.01
Previous year: $0.05
-80.0%
Gross Profit
$7.1M
Previous year: $8.6M
-17.4%
Cash and Equivalents
$9.3M
Previous year: $5.6M
+66.1%
Free Cash Flow
$2.52M
Previous year: $1.1M
+128.9%
Total Assets
$47.9M
Previous year: $42.5M
+12.7%

Mamas Creations

Mamas Creations

Forward Guidance

Mama's Creations is positioned for profitable growth due to investments in CapEx, senior leadership, and marketing, along with a reversal of recent commodity highs and strong November results.

Positive Outlook

  • Completion of CapEx investments to double grilled chicken throughput.
  • Addition of world-class senior leadership.
  • Implementation of automation and operational efficiency improvements.
  • Improvements in chicken trimming capabilities.
  • Labor cost savings through a new lower-overtime staffing model.

Challenges Ahead

  • Construction-related disruptions at the Farmingdale facility impacted gross margins by approximately 400 basis points.
  • Gross margins were pressured by increased chicken prices.
  • Operating expenses increased due to increased marketing spend.
  • Adjusted EBITDA decreased compared to the same quarter last year.
  • Change in cash and cash equivalents was primarily driven by capital investments and debt paydown.