Mama’s Creations(US:MAMA)2026-01-13 20:32Financial Data and Key Metrics Changes - The company reported a revenue capacity of approximately $200 million, with expectations to double this figure due to recent expansions and renovations of facilities [36] - Gross margin has improved significantly from 11.9% to consistently in the mid- to high 20s%, with a peak of 30% [37] Business Line Data and Key Metrics Changes - The company has expanded its presence from about 8,000 stores to approximately 15,000 stores, with an increase in the average number of items sold per store from under five to around seven [15][16] - The company has successfully entered new retail partnerships, including Target and Food Lion, and is now present in every Costco, BJ's, and half of Walmart locations [15][16] Market Data and Key Metrics Changes - The deli category, where the company operates, is valued at $60 billion and has shown growth, with the category growing 4% this year [4][8] - The company noted that the deli category is one of the most profitable parts of grocery stores, with margins often exceeding 50% for retailers [9][10] Company Strategy and Development Direction - The company aims to create a one-stop shop in the deli space, capitalizing on the fragmented market and focusing on expanding its product offerings [4] - The management team has been overhauled to include experienced professionals from leading companies, enhancing operational capabilities and strategic execution [6][7] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the deli category's growth, noting that it is outperforming other retail segments amid economic challenges [8][9] - The company is targeting a billion-dollar revenue goal, with plans for organic growth and strategic acquisitions to reach this target [43] Other Important Information - The company has implemented significant operational improvements, including insourcing functions that have positive margin implications [39] - The management emphasized the importance of partnerships with retailers and the flexibility in product branding to drive sales [24][25] Q&A Session Summary Question: How is the Costco partnership performing? - The company reported strong performance in Costco, with sales increasing from $540,000 in the first year to $10 million last year, and achieving $10 million in Q1 this year alone [33] Question: What are the long-term growth targets? - The company aims for a billion-dollar business, with half of the growth expected to be organic and the other half through acquisitions, targeting $500 million in revenue from M&A [43] Question: What is the expected EBITDA margin at scale? - The management anticipates achieving mid-teens EBITDA margins once the company reaches scale [45]