Mama’s Creations(US:MAMA)2024-12-16 21:03Revenue Performance - Net sales increased by approximately 10% to $31.5 million for the three months ended October 31, 2024, compared to $28.6 million for the same period in 2023[164] - Net sales for the nine months ended October 31, 2024, increased by approximately 17.2% to $89.7 million from $76.6 million in the prior year[172] Cost and Profitability - Costs of sales rose by approximately 22% to $24.4 million, representing 77% of net sales for the three months ended October 31, 2024, up from 70% in the prior year[165] - Gross profit margin decreased to 23% for the three months ended October 31, 2024, down from 30% in the same period of 2023[166] - Costs of sales for the nine months ended October 31, 2024, increased by approximately 26% to $68.3 million, representing 76% of net sales[173] - Gross profit margin for the nine months ended October 31, 2024, was 24%, down from 29% in the same period of 2023[175] Operating Expenses - Operating expenses increased by approximately $622 thousand to $6.6 million for the three months ended October 31, 2024, primarily due to higher advertising and payroll expenses[168] - Operating expenses increased by 19% to $18.5 million for the nine months ended October 31, 2024, largely due to a one-time legal settlement and increased advertising expenses[176] Net Income - Net income for the three months ended October 31, 2024, was approximately $0.4 million, a decrease from $2.0 million in the same period of 2023[163] Cash Flow and Financing - Net cash provided by operating activities for the nine months ended October 31, 2024, was approximately $6.0 million, compared to $4.9 million in the same period of 2023[185] - Net cash used in financing activities for the nine months ended October 31, 2023 was approximately $2.3 million, including $1.3 million for Term Loan payments, $0.9 million for line of credit payments, and $0.2 million for finance leases[189] - The company believes its cash resources will be sufficient to meet cash requirements for at least the next twelve months, but may require additional funding for growth[190] - There is no assurance that additional financing will be available on acceptable terms, which may necessitate a change in growth strategy[191]