Mama’s Creations posts strong second-quarter revenue growth
Second quarter revenues up 14% to $28.4 million
Company continues a steady pace of new sales wins, including initial store placements in Wal-Mart and a Costco national buy
Overview
Mama’s Creations, Inc. (NASDAQ: MAMA), a national marketer and manufacturer of fresh deli prepared foods, reported solid second-quarter results that underline its momentum. For the quarter ended July 31, 2024, revenue rose 14% to $28.4 million, up from $24.8 million in the same period last year. The year-over-year increase reflects steady execution in the core deli-prepared category and growing distribution with key retailers.
Financial performance highlights
The quarter’s metrics point to continued top-line strength alongside measured cost control. Key figures include:
- Gross profit: $6.9 million, or roughly 24.2% of revenue, versus $7.5 million and 30.3% a year ago, reflecting commodity and mix pressures.
- Operating expenses: $5.3 million, slightly higher than $5.2 million last year, indicating generally stable spending.
- Net income: $1.1 million, compared to $1.7 million in the prior-year period, with the decline tied primarily to construction-related items and commodity costs.
- Earnings per share (diluted): $0.03, down from $0.05 in the previous fiscal quarter.
- Adjusted EBITDA: $2.7 million, versus $3.0 million in the prior year.
In short: revenue is growing, while margin work remains in progress as input costs and project spending roll through the P&L.
Operational developments and strategic initiatives
Alongside the financial results, the company advanced several initiatives designed to strengthen operations and expand reach:
- Named Skip Tappan as Chief Operating Officer, adding deep supply chain expertise from roles at Walmart and Campbell Soup to sharpen execution.
- Stepped up presence at major trade shows and industry conferences to showcase new items and support customer outreach.
- Launched new products—Breakfast Wraps and Gourmet Paninis—and secured significant distribution, including placements in 2,000 Walmart locations and additional Costco contracts.
- Invested in infrastructure and automation, with a focus on chicken processing, to streamline throughput and prepare for higher volumes.
These moves aim to tighten day-to-day operations while opening more doors with large, high-traffic retailers.
Management commentary
Chairman and CEO Adam L. Michaels emphasized consistent execution and the company’s “4 Cs” framework—Cost, Controls, Culture, and Catapult—as drivers of progress. He acknowledged commodity volatility and operational disruptions, noting that proactive pricing and process improvements are in place. Management expects these actions to lift margins over the near term and position the business to fully meet growing demand for deli-prepared foods across the marketplace.
Future outlook and market positioning
Looking ahead, the company remains optimistic. As infrastructure projects are completed and recent cost pressures ease, management anticipates a path back toward healthier margins, closer to historical peaks. Operational enhancements are intended to improve service levels and responsiveness, while increased trade promotions and marketing are expected to support share gains. The focus is straightforward: protect profitability, support retail partners, and keep the innovation pipeline moving.
Frequently Asked Questions
1. What was the revenue increase percentage for Mama’s Creations in Q2 2025?
Revenue increased 14%, reaching $28.4 million for the second quarter. That’s up from $24.8 million in the comparable period last year.
2. Who was appointed as the new Chief Operating Officer?
Skip Tappan was named COO, bringing long-standing supply chain leadership experience from Walmart and Campbell Soup.
3. What new products did Mama’s Creations introduce recently?
Recent launches include Breakfast Wraps, Grilled Chicken in Vacuum Packs, and Gourmet Paninis, reflecting a focus on convenient, deli-ready options.
4. How did the net income for Q2 2025 compare to the previous year?
Net income was $1.1 million, down from $1.7 million in the same quarter last year, largely due to construction-related items and commodity cost pressures.
5. What strategic actions is Mama’s Creations implementing for growth?
The company is investing in automation and infrastructure, expanding distribution with retailers such as Walmart and Costco, introducing new products, and using targeted trade promotions to support margins and market share.
