Mama's Creations Reports First Quarter Fiscal 2026 Financial Results

Record Trade Investment, Operational Efficiency Gains and New Customer Wins Drive Strong Start to Fiscal 2026 EAST RUTHERFORD, NJ, June 03, 2025 (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 first quarter ended April 30, 2025. Financial Summary: Three Months Ended April 30, $ in millions 2025 2024 % Increase Revenues $35.3 $29.8 18%Gross Profit $9.2 $7.5 23%Operating Expenses $7.6 $6.7 14%Net Income $1.2 $0.6 124%Earnings per Share (Diluted) $0.03 $0.01 123%Adj. EBITDA (non-GAAP) $2.8 $2.5 12% First Quarter Fiscal 2026 & Subsequent Operational Highlights: Sold in a variety of new items using the entire chicken breast, including Chicken Strips at Albertson’s & BJs as well as Chicken Meatballs at Costco. In addition, secured new customers in the second quarter with Lidl, Amazon Fresh and Sheetz.Achieved record trade promotion investment at 6% of gross revenue, up from 2% in the fourth quarter, reflecting high ROI campaigns with strategic customers such as Publix, Costco and Ahold.Invited to attend leading investor conferences nationally, including the ROTH Conference, the 2025 Planet MicroCap Showcase, the Craig-Hallum Institutional Investor Conference, the TD Cowen Future of the Consumer Conference and the Oppenheimer Consumer Growth Conference.Cash and cash equivalents as of April 30, 2025 grew $4.9 million sequentially to $12 million, as compared to $7.2 million as of January 31, 2025. The change in cash and cash equivalents was primarily driven by improved profitability and working capital optimization. Management Commentary “As we kick off fiscal 2026, we are pleased with our first quarter performance, marked by broad-based market share gains as revenue growth outpaced category growth by ~5x, high-ROI trade investments, and continued momentum across the entire United States, creating a balanced geographic distribution. Most notably, we invested a record 6% of gross revenue into trade promotion in the quarter, up from 2% in both the fourth quarter and prior year – reflecting that on a normalized basis, our product-level margins continue to meet or exceed our expectations. A few examples of these high ROI trade investments include our successful - now branded - Publix Pub Sub Program, targeted branded sleeve programs at Ahold and our first ever digital multi-vendor mailer (MVM) at Costco, allowing us to enter all eight Costco regions simultaneously… and profitably! “New product and customer wins further solidified our national footprint this quarter. We launched several new chicken items using the entire chicken breast at BJ’s and Albertsons, while adding incremental accounts like Amazon Fresh, Lidl and Sheetz. We continue to see the benefits of inflation-driven, trade-down behavior favoring our value-oriented, high-protein offerings – with a robust 90%+ of our growth being volume driven. “I am also proud to say, working in collaborative partnership with our customers, we were able to realize pricing increases across our customer portfolio, all fully implemented by May – the start of our second fiscal quarter. While commodity pressures continued to impact margins, our enhanced and reimagined chicken operation drove meaningful efficiency increases, with overtime down by nearly 70% and significant yield increases due to upstream tumbling and trimming, which is performing ahead of plan. These initiatives, paired with our bulk protein contracts and strong performance on the beef side of the business, helped us overdeliver our target margin profile, before accounting for trade promotion investments. “To conclude, I am incredibly proud of the continued strengthening of our balance sheet in the quarter. We generated $6.0 million of cash flow from operations in the quarter, concurrently paying down our total debt to $4.6 million. Looking ahead, our $12 million of cash – the Company’s second highest balance ever – will provide us with ample flexibility to support prospective acquisitions, further innovation, and margin expansion in the quarters ahead,” concluded Michaels. First Quarter Fiscal 2026 Financial Results Revenue for the first quarter of fiscal 2026 increased 18.2% to a record $35.3 million, as compared to $29.8 million in the same year-ago quarter. The increase was largely attributable to volume gains driven by same-customer cross-selling of new items, accelerating velocities of existing items and new customer door expansion, partially offset by a tripling of trade promotion investments from 2.1% to 6.0% of gross revenue, which grew 23.4% to $37.5 million in the quarter. Targeted pricing actions were successfully put in place and implemented to ensure the Company maintained gross margin targets. Gross profit increased 23.1% to $9.2 million, or 26.1% of total revenues, in the first quarter of fiscal 2026, as compared to $7.5 million, or 25.0% of total revenues, in the same year-ago quarter. The difference in gross margin was primarily attributable to operational efficiency improvements across the organization, partially offset by continued chicken commodity headwinds. Operating expenses totaled $7.6 million in the first quarter of fiscal 2026, as compared to $6.7 million in the same year-ago quarter. As a percentage of sales, operating expenses decreased in first quarter fiscal 2026 to 21.6% from 22.4%. Operating expenses in the first quarter benefitted from increased operating leverage and ongoing operational efficiency improvements, partially offset by a 71% year-over-year increase in marketing spend– an area of historical underinvestment – to help drive repeatable and profitable brand growth. Net income for the first quarter of fiscal 2026 increased 123.7% to $1.2 million, or $0.03 per diluted share, as compared to net income of $0.6 million, or $0.01 per diluted share, in the same year-ago quarter. First quarter net income totaled 3.5% of revenue, as compared to 1.9% in the same year-ago quarter. Adjusted EBITDA, a non-GAAP measure, increased 12.2% to $2.8 million for the first quarter of fiscal 2026, as compared to $2.5 million in the same year-ago quarter. Cash and cash equivalents as of April 30, 2025, grew to $12.0 million, as compared to $7.2 million as of January 31, 2025. The change in cash and cash equivalents was primarily driven by $6.0 million in cash flow from operations during the first quarter, primarily driven by improved profitability and working capital optimization. As of April 30, 2025, total debt stood at $4.6 million, as compared to $8.3 million as of April 30, 2024. Conference Call Management will host an investor conference call at 4:30 p.m. Eastern time today, June 3, 2025 to discuss the Company’s first quarter fiscal 2026 financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate, please use the following information: Q1 FY2026 Earnings Conference CallDate: Tuesday, June 3, 2025 Time: 4:30 p.m. Eastern time U.S. Dial-in: 1-877-451-6152International Dial-in: 1-201-389-0879Conference ID: 13753353Webcast: MAMA Q1 FY2026 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 Sunday, August 3, 2025. 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 13753353. 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 10,000 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. 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. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, please see the reconciliation table shown in this press release below. US-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION(Unaudited)(in thousands) Three Months Ended April 30, 2025 2024 Net income $1,237 $553 Depreciation 554 292 Amortization 409 369 Taxes 280 179 Interest, net 58 35 Stock-based compensation 305 205 Stock & Cash Settlement Agreement - 900 Adjusted EBITDA (Non-GAAP) $2,843 $2,533 Forward-Looking Statements This press release may contain forward-looking statements within the meaning of Section 27A 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 “anticipate,” “believe,” “eventually,” “expect,” “future,” “may,” “look forward to,” “plan,” “projected,” “should,” “will,” and other words that convey the uncertainty of future events or outcomes. 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. Certain of these risk factors and others are included in documents the Company files with the Securities and Exchange Commission, including but not limited to, the Company’s Annual Report on Form 10-K for the year ended January 31, 2025, as well as subsequent reports filed with the Securities and Exchange Commission. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other factors, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except as may be required by applicable law or regulation, the Company’s does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements. Investor Relations Contact:Lucas A. ZimmermanManaging DirectorMZ Group - MZ North America(949) 259-4987MAMA@mzgroup.us www.mzgroup.us Mama’s Creations, Inc.Condensed Consolidated Balance Sheets(In thousands, except share and per share data) April 30, 2025 January 31, 2025 (Unaudited) Assets: Current Assets: Cash and cash equivalents $12,011 $7,150 Accounts receivable, net 5,805 8,131 Inventories, net 5,287 4,817 Prepaid expenses and other current assets 1,124 1,779 Total Current Assets 24,227 21,877 Property, plant, and equipment, net 9,446 9,387 Intangible assets, net 3,067 3,436 Goodwill 8,633 8,633 Operating lease right of use assets, net 6,788 3,376 Deferred tax asset 469 258 Deposits 95 95 Total Assets $52,725 $47,062 Liabilities and Stockholders’ Equity: Liabilities: Current Liabilities: Accounts payable and accrued expenses $13,526 $12,052 Term loan, net of unamortized debt discount of $19 and $22, respectively 1,533 1,530 Operating lease liabilities 1,085 848 Finance leases payable 321 345 Promissory notes – related parties 2,250 2,250 Total Current Liabilities 18,715 17,025 Term loan – net of current 839 1,342 Operating lease liabilities – net of current 5,612 2,600 Finance leases payable – net of current 1,121 1,199 Total long-term liabilities 7,572 5,141 Total Liabilities 26,287 22,166 Stockholders’ Equity: Series A Preferred stock, $0.00001 par value; 120,000 shares authorized; 23,400 issued, 0 shares outstanding - - Series B Preferred stock, $0.00001 par value; 200,000 shares authorized; 0 and 0 issued or outstanding - - Preferred stock, $0.00001 par value; 19,680,000 shares authorized; 0 shares issued or outstanding - - Common stock, $0.00001 par value; 250,000,000 shares authorized; 37,834,000 and 37,826,000 shares issued as of April 30, and January 31, 2025, respectively, 37,604,000 and 37,596,000 shares outstanding as of April 30, and January 31, 2025, respectively - - Additional paid-in capital 25,187 24,882 Retained earnings 1,401 164 Less: Treasury stock, 230,000 shares at cost (150) (150)Total Stockholders’ Equity 26,438 24,896 Total Liabilities and Stockholders’ Equity $52,725 $47,062 Mama’s Creations, Inc.Condensed Consolidated Statements of Operations(Unaudited)(in thousands, except per share data) For the Three Months EndedApril 30, 2025 2024 Net sales $35,255 $29,838 Costs of sales 26,071 22,375 Gross profit 9,184 7,463 Operating expenses: Research and development 73 104 Selling, general and administrative expenses 7,533 6,586 Total operating expenses 7,606 6,690 Income from operations 1,578 773 Other income (expenses) Interest expense (88) (127)Interest income 30 92 Amortization of debt discount (3) (6)Total other expenses (61) (41) Net income before income tax provision 1,517 732 Income tax expense (280) (179) Net income $1,237 $553 Net income per common share – basic $0.03 $0.01 – diluted $0.03 $0.01 Weighted average common shares outstanding – basic 37,597 37,259 – diluted 39,378 39,328 Mama’s Creations, Inc.Condensed Consolidated Statements of Cash Flows(Unaudited)(in thousands) For the Three Months Ended April 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $1,237 $553 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 554 292 Amortization of debt discount 3 6 Amortization of right of use assets 293 134 Amortization of intangibles 370 380 Stock-based compensation 305 205 Change in deferred tax asset (211) 172 Changes in operating assets and liabilities: Accounts receivable 2,326 (220)Inventories (470) 293 Prepaid expenses and other current assets 382 145 Accounts payable and accrued expenses 1,473 1,832 Operating lease liability (257) (151)Net Cash Provided by Operating Activities 6,005 3,641 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets (539) (1,144)Net Cash (Used in) Investing Activities (539) (1,144) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of term loan (503) (388)Repayment of finance lease obligations (102) (95)Proceeds from exercise of stock options - 7 Net Cash (Used in) Financing Activities (605) (476) Net Increase in Cash 4,861 2,021 Cash and cash equivalents at beginning of period 7,150 11,022 Cash and cash equivalents at end of period $12,011 $13,043 SUPPLEMENTARY CASH FLOW INFORMATION: Cash paid during the period for: Income taxes $5 $- Interest $82 $114 SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Finance lease asset additions $- $169 Right of use asset recognized $4,156 $873 Write-off of right of use asset $451 $897 Receipt of fixed assets for deposits previously paid $74 $-

Mama's Creations Reports First Quarter Fiscal 2026 Financial Results

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