Mama's Creations (MAMA) Q2 2025 earnings summary

Executive summary

• Revenue grew 14–14.5% year-over-year in Q2 to $28.4M, driven by volume gains, pricing actions, and new customer wins including Walmart and Costco.

• Net income declined to $1.1M (4% of revenue), down from $1.7M, 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.

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

• Appointed Skip Tappan as COO to drive supply chain and operational improvements.

Financial highlights

• Q2 revenue: $28.4M (+14–14.5% YoY); gross profit: $6.9M (24.2% margin); net income: $1.1M (4% margin); adjusted EBITDA: $2.7M (9.5% margin).

• Cash and equivalents at $7.4M as of July 31, 2024; total debt at $6.8M.

• Six-month net sales: $58.2M (+21.5% YoY); net income: $1.7M, down from $3.1M.

• Operating cash flow for six months: $1.2M, down from $3.4M last year.

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

Outlook and guidance

• Management maintains double-digit revenue growth target for the year and expects margin improvement as construction disruptions subside.

• Normalized gross margin expected to return to high 20% range, with long-term goal in low 30%.

• Adjusted EBITDA margin targeted in the teens percentage range long-term.

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

• Cash resources expected to be sufficient for at least twelve months, but external funding may be needed for growth.