Mama's Creations Reports First Quarter Fiscal 2026 Financial Results

Core Insights - Mama's Creations, Inc. reported strong financial performance for the first quarter of fiscal 2026, with revenues increasing by 18.2% to $35.3 million compared to $29.8 million in the same quarter of the previous year [2][8] - The company achieved a net income of $1.2 million, representing a 123.7% increase from $0.6 million in the prior year, driven by operational efficiency and strategic trade investments [11][12] - Significant trade promotion investments were made, reaching a record 6% of gross revenue, which contributed to market share gains and new customer acquisitions [4][6] Financial Performance - Revenues for the first quarter of fiscal 2026 were $35.3 million, an increase of 18.2% from $29.8 million in the same quarter of 2024 [2][8] - Gross profit rose by 23.1% to $9.2 million, with gross margin improving to 26.1% from 25.0% year-over-year [9] - Operating expenses increased to $7.6 million, but as a percentage of sales, they decreased to 21.6% from 22.4% due to improved operational efficiency [10] Operational Highlights - The company launched new chicken products and secured new customers, including Amazon Fresh, Lidl, and Sheetz, contributing to a robust growth driven by volume [4][6] - Cash and cash equivalents increased to $12 million, up from $7.2 million at the end of January 2025, primarily due to improved profitability [12][7] - The company reported a significant reduction in overtime by nearly 70% and improved yield from operational enhancements in its chicken operations [5][6] Strategic Initiatives - Mama's Creations invested 6% of gross revenue into trade promotions, significantly higher than the 2% in the previous quarter, reflecting a focus on high-ROI campaigns [4][6] - The company successfully implemented pricing increases across its customer portfolio, which were fully in effect by the start of the second fiscal quarter [5] - The management expressed confidence in the company's ability to support future acquisitions and innovation with its strengthened balance sheet and cash position [7]