Q2 2027 Mama's Creations Inc Earnings Call Transcript
Key Points
- Revenue surged 55% year-over-year to $54.6 million, with net income more than doubling to $2.6 million.
- Adjusted EBITDA expanded 69% to $5.5 million, with margins improving to 10.1% from 9.3% a year ago.
- Gross margin improved sequentially to 24.0% from 23.6%, driven by new product launches moving into steady-state production.
- Closed the quarter with a robust cash position of $138.6 million and minimal debt, providing significant firepower for accretive M&A.
- Secured major new distribution wins, including a first-ever launch at Kroger (100+ stores) and a confirmed Costco multi-vendor mailer across all eight regions.
- Operating expenses declined 160 basis points as a percentage of revenue, demonstrating strong operating leverage.
- Expanded the East Rutherford facility, doubling frozen and refrigerated storage capacity to reduce outside storage costs and increase logistics flexibility.
- Gross margin declined year-over-year to 24.0% from 24.9%, impacted by investments in trade spending and ongoing inefficiencies at the Bay Shore facility.
- The company intentionally shifted $0.5 million from marketing to trade, which temporarily pressured gross margin by a full point.
- Bay Shore facility margins remain approximately one point below the corporate average, though improving.
- The product mix is skewed toward lower-margin 'portion chicken' items, which sell at higher velocities and dilute the overall margin contribution from higher-margin 'chicken bottoms'.
- The company is still in the early stages of ramping new branded items at Walmart and Target, with some items like sausage and peppers and meatloaf underperforming.
- Management noted that the company is still operating with one to two days of trimming per week, indicating there is still significant operational inefficiency to address.
Thank you. Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Mama's Creations, Inc. Second Quarter Fiscal 2027 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. (Operator Instructions) This conference is being recorded today, Thursday, September 3, 2026, and the earnings press release accompanying this conference call was issued after the market closed today.
On our call today is Mama's Creations Chairman and CEO, Adam L. Michaels, and CFO, Anthony Gruber. Before we get started, I'd like to note that some of the statements on this call will be forward-looking statements that reflect management's current expectations about future operating and financial results.
Although management believes their expectations and assumptions are reasonable, they remain subject to significant risks and uncertainty, and actual results for future periods may differ materially from what is stated or implied during today's call.
For more information, please refer to the forward-looking statement section in today's press release
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