Mama's Creations, Inc. Q2 FY2026 earnings call

1. Broad-based momentum with revenue growth outpacing the category, leveraging high ROI trade investment and geographic balance. 2. Implemented targeted pricing in early Q2 and saw operational improvements in chicken with better yields, throughput, and labor optimization. 3. Acquired Crown I Enterprises, a full-service manufacturer of value-added meats and ready-to-eat meals, with a $17.5 million all-cash deal, bringing synergies, capacity, and access to new customers. 4. Market dynamics: Private label brands outpaced national brands, refrigerated foods have strong consumer connection, and protein remains a top nutrient. 5. Operational focus on 4 Cs: Cost (driving efficiency in facilities, freight management, and chicken needs), Controls (implementing warehouse management system and NetSuite upgrades), Culture (Heritage Mentorship Program), and Catapult (over 20% growth, sales team focusing on club channel and new product launches). 6. M&A playbook successful with previous acquisitions and now integrating Crown I.

Revenue for the second quarter of fiscal 2026 increased 24% to $35.2 million compared to $28.4 million in the same year-ago quarter. The acquisition of Crown I Enterprises added $56 million in revenue for the 12 months ending June 30 of 2025. Gross profit increased 28% to $8.8 million or 25% of total revenues in Q2 2026, while operating expenses totaled $7.1 million. The revenue from Crown I contributes meaningfully to the overall revenue, with the combined revenue run rate standing at approximately $200 million post-acquisition.

1. Revenue run rate stands at approximately $200 million post-acquisition of Crown I. 2. Normalized gross margin profile is expected to hover in the low 20% range, with plans to lift it towards mid- to high 20% range over 12-18 months through operational discipline and cost savings. 3. Trade spend managed with focus on ROI, with trade running 3x prior year for the first half of the year. 4. Confident in integrating Crown I over the next year and pursuing future M&A opportunities.

1. Macroeconomic environment posing challenges for consumers. 2. Commodity price fluctuations, particularly in chicken and beef. 3. Integration challenges of acquiring Crown I and other potential acquisitions. 4. Litigation risks and other uncertainties beyond the company's control.

Q: On gross margins, especially organic Mama's business, how confident are you in gross margin rebound in the second half?

A: Confident, with chicken prices down $1 per pound, operational efficiency improvements, and strong sales team driving growth.

Q: About the $56 million revenue from Crown acquisition, is it growing?

A: Will look at rightsizing the business, meeting with customers, and leveraging shared equipment and capacity for growth.

Q: Costco news and MVM importance?

A: Evolution from one item to national buy and potential for everyday product status, with strong progress in penetrating Costco.

Q: Differences in map capabilities between Crown and Mama's?

A: Crown has more equipment and experience in certain areas, with learnings shared between teams.

Q: Trade promotion plans with Crown affecting gross margins?

A: Balance between gross margin and marketing spend, with Crown's lower trade rate and flexible approach by Chris and Anthony.

Q: Potential revenue capacity from Crown's facility?

A: Anticipate doubling revenue through efficiency and collaborative customer conversations.

Q: Sam's Club panini performance?

A: Chicken pesto panini is performing well with expanded door count and ongoing orders.

Q: Walmart marketing success and evolution?

A: Strong partnership with growth in door count and collaborative approach.

Q: Sheetz expansion and convenience channel focus?

A: Focus on convenience channel, with efforts to get into distributors and test new products.

Q: Effect of Crown acquisition on East Rutherford facility improvements?

A: Continuing investments in East Rutherford but with reduced CapEx due to shared equipment from Crown.