Mamas Creations Inc (MAMA) reported a solid first quarter of fiscal 2026, with revenue up 18% year over year to $35.3 million, driven primarily by volume and expanded customer doors. Gross margin reached 26.1% in the quarter, aided by fixed-price protein contracts that provide margin stability amid commodity volatility, while trade promotions rose to a record 6% of gross revenue. Net income rose 123% to $1.24 million, and EBITDA expanded to $2.83 million as the company benefited from operating leverage and ongoing efficiency improvements. Cash flow from operations totaled $6.0 million, supporting a stronger balance sheet with cash and equivalents of $12.0 million and total debt reduced to $4.6 million, laying a healthy foundation for strategic investments and potential acquisitions. Management outlined a multi-year, four-paceted operating framework (Cost, Controls, Culture, Catapult) and emphasized ongoing margin expansion and brand-building investments (e.g., trade, marketing ROI) to drive next-stage growth while pursuing a national deli solutions platform.
Management also highlighted meaningful operating improvements across chicken trimming, throughput, and yields, with capacity doubling year over year and overtime hours down ~70%. These gains supported higher production efficiency and enable a deliberate ramp in in-house trimming and product expansions. Distribution wins across major retailers (Albertsons, BJ’s, Costco, Publix, Lidl, Amazon Fresh, Sheetz) underscore a strategic shift toward a national deli presence. The near-term outlook remains constructive, with management targeting high- to mid-20s gross margins on a normalized basis, trade spend trending toward a 10% of revenue target, and continued robust cash generation. The company also signaled an active, disciplined M&A process with a full pipeline of opportunities, tempered by commodity and macro uncertainties. Overall, the QQ1 2026 results position MAMA to pursue profitable, scalable growth in fiscal 2026 and beyond, while maintaining cash discipline and a vigilant view on margin protection.