Mama’s Creations Reports Strong Growth Amid Challenges

Mama’s Creations, Inc. ((MAMA)) has held its Q3 earnings call. Read on for the main highlights of the call.

During Mama’s Creations, Inc.’s latest earnings call, the sentiment was notably positive, driven by significant revenue growth and the successful integration of the Bayshore facility. While the company celebrated substantial improvements in gross profit and adjusted EBITDA, it also acknowledged challenges such as increased operating expenses, beef commodity headwinds, and a decrease in net income margin. Overall, the strong growth and strategic achievements were seen as outweighing the hurdles faced.

Revenue Growth

The company reported a remarkable 50% increase in revenue for 2026, reaching $47.3 million compared to $31.5 million in the same quarter the previous year. This growth was fueled by the acquisition of Crown One and robust double-digit growth in the legacy business, marking a significant milestone for Mama’s Creations.

Gross Profit Increase

Gross profit saw a substantial rise of 56.6%, amounting to $11.1 million or 23.6% of total revenues, up from $7.1 million or 22.6% in the year-ago quarter. This improvement was primarily attributed to enhanced operational efficiency, showcasing the company’s effective cost management strategies.

Adjusted EBITDA Growth

The adjusted EBITDA, a key performance measure, surged by 118% to $3.8 million for 2026, compared to $1.7 million in the same period last year. This impressive growth underscores the company’s ability to enhance profitability through strategic initiatives.

Successful Acquisition Integration

Mama’s Creations successfully integrated the Bayshore facility ahead of schedule, achieving 100% centralized procurement and realizing substantial operational efficiencies. This strategic move has been pivotal in driving the company’s growth trajectory.

New Major Retail Partnerships

The company expanded its market reach significantly by securing partnerships with major retailers Target and Food Lion, entering 1,995 and 1,100 stores respectively. This expansion is expected to bolster the company’s presence in the retail sector.

Operating Expenses Increase

Operating expenses rose to $10.3 million in 2026, up from $6.6 million in the previous year, primarily due to the acquisition of Crown One and $1 million in nonrecurring transaction expenses. Despite this increase, the company remains focused on managing costs effectively.

Beef Commodity Headwinds

The company faced challenges with beef commodity headwinds, as beef prices surged by 50% due to the worst herd in 73 years. This situation partially offset the improvements in gross margin, presenting a challenge for the company’s cost structure.

Net Income Margin Decline

Although net income for 2026 increased by 31.7% to $500,000, it represented only 1.1% of revenue, down from 1.3% in the previous year. This decline was impacted by acquisition costs, highlighting the need for continued focus on margin improvement.

Forward-Looking Guidance

Looking ahead, Mama’s Creations remains committed to profitable growth, with expectations to lift Bayshore’s gross margin toward its historical range over the next year. The company also aims to capitalize on its new partnerships and operational improvements, such as a 40% increase in chicken throughput and a 30 basis point reduction in freight costs, to sustain its growth momentum.

In summary, Mama’s Creations, Inc.’s earnings call reflected a positive outlook, driven by strong revenue growth and strategic wins, despite facing some operational challenges. The company’s focus on enhancing profitability and expanding its market presence positions it well for future success.