Mama's Creations (MAMA) Q2 2025 earnings summary

Executive summary

• Revenue grew 14–14.5% year-over-year to $28.4 million in Q2, driven by volume gains, pricing actions, new customer wins, and the CIF acquisition.

• Net income declined to $1.1 million ($0.03 per diluted share), down from $1.7 million, due to higher commodity costs and construction-related disruptions.

• Gross profit margin fell to 24–24.2% from 30–30.3% year-over-year, mainly from increased commodity costs, especially chicken.

• Major new sales wins include Walmart and Costco, with expanded distribution and product offerings.

• Strategic CapEx projects completed, doubling chicken capacity and expected to improve margins and throughput.

Financial highlights

• Q2 revenue was $28.4 million (+14–14.5% YoY); gross profit $6.9 million (24.2% margin); net income $1.1 million (4% margin); adjusted EBITDA $2.7 million.

• Cash and cash equivalents were $7.4 million as of July 31, 2024, after $3.5 million CapEx and $2 million debt paydown.

• Total debt stood at $6.8 million as of July 31, 2024; term loan balance reduced to $3.8 million.

• Operating expenses were flat at $5.3 million, 18.6% of sales, down from 21.1% year-over-year.

• Working capital decreased to $5.4 million from $6.9 million at year-end.

Outlook and guidance

• Management maintains a double-digit revenue growth target for the year, supported by new customer launches and expanded distribution.

• Expects normalized gross margins in the high 20% range, with a long-term goal of low 30% margins as CapEx investments take hold.

• Adjusted EBITDA margin target set in the teens percentage range for the long term.

• Trade promotion investment expected to ramp up in 2025, aiming for 10% of revenue over time.

• Management expects margin and profitability improvement as construction disruptions subside and commodity prices normalize.