Mama's Creations, Inc. Q3 FY2026 earnings call

• Acquisition of the Bayshore facility (Crown One) and progress in integration: 100% of Bayshore's procurement centralized, production transitions made, and plans to lift Bayshore's gross margin towards corporate range. - Consumer trends: Growth in grocery deli prepared foods market, with fully cooked meats and chicken as top performers. - Operational execution: Implemented four C strategy (Cost, Controls, Culture, Catapult) with achievements in logistics, procurement, demand planning, culture integration (smooth transition of Bayshore employees), and market share gains with new retail partners like Target and Food Lion. - Marketing and partnerships: Successful rollouts with retailers, marketing initiatives driving impressions and ROI, and strong partnerships with Costco.

Revenue for the third quarter of fiscal 2026 was $47,300,000, an increase of 50% compared to $31,500,000 in the same quarter of the prior year. Gross profit was $11,100,000, up 56.6% to 23.6% of total revenues. The increase in gross margin rate was due to operational efficiency improvements and success in managing raw chicken prices, partially offset by beef commodity headwinds and lower margin sales from the acquired Crown One. Adjusted EBITDA increased 118% to $3,800,000 for the quarter. Cash and cash equivalents grew to $18,100,000 as of October 31, 2025, and total debt stood at $6,400,000.

• Expect Bayshore's gross margin to reach the mid-twenty percent range over the next year. - Locking in chicken supply agreements for calendar 2026 to stabilize the supply chain. - Continued focus on organic and inorganic growth opportunities, with plans to evaluate additional acquisitions that fit the disciplined framework.

• Factors affecting forward-looking statements: Loss of key management personnel, availability of capital, major litigation. - Commodity price volatility, particularly in beef and chicken, which can impact margins.

Q: Brian Holland from D.A. Davidson asked about AIC progress, Costco MVM, and chicken supply locking.

A: Adam Michaels discussed AIC focus on getting more items into stores, Costco MVM execution with ongoing shipping and marketing initiatives to drive awareness, and chicken supply negotiations highlighting scale and better pricing opportunities.

Q: Eric DeLaurier from Craig Hallum asked about SKU rationalization and trade promotion.

A: Adam Michaels talked about SKU rationalization starting in January, with the team focused on gross margin, and trade promotion focus on high ROI investments.