Mama's Creations, Inc. Q4 FY2026 earnings call

• Macro trends: Deli prepared space is growing, consumer shift towards deli prepared foods, meat sales at record high. - 4C strategy: Cost - Bayshore integration improved gross margins. Controls - All three facilities achieved third - party SQF score of 98. Culture - Implemented new employee one - stop shop portal, Mama's Pantry intranet, and working on learning and development at Mamas University. Catapult - Costco journey: Grew sales from half a million dollars to $10 million annualized, achieved everyday item status in Northeast, and had success with other retailers like Walmart, Target, Food Lion. Marketing work on Instacart and brand partnerships boosted velocities.

Fiscal 26 saw revenue grow 39% to $171.7 million. Fourth quarter revenue grew 61% to $54 million. Adjusted EBITDA expanded over 50% to $15.4 million in fiscal 26. Gross profit in fourth quarter of fiscal 26 increased 53.8% to $14 million, which was 25.9% of total revenues. Full-year gross profit increased 41% to $43 million, or 25.1% of total revenues. Operating expenses in fourth quarter of fiscal 26 were $10.9 million, compared to $7.2 million in same year-ago quarter. Full-year operating expenses totaled $35.9 million. Net income in fourth quarter of fiscal 26 increased 37.5% to $2.2 million. Full-year net income increased 43.2% to $5.3 million.

• Fiscal 27 strategic priorities: Optimize integrated three - facility network, deepen and expand retail distribution through major new wins and club channel partnerships, deploy strong financial position and balance sheet to pursue accretive acquisitions.

• Forward - looking statements are subject to significant risks and uncertainties. Actual results for future periods may differ materially from what is stated or implied. Risks are detailed in the company's most recent Form 10 - K and subsequent reports filed with the SEC.

Q: Looking ahead to fiscal 27, can I assume that the double - digit growth outlook holds?

A: Yeah, we feel comfortable that double - digit growth will continue to gain meaningful share for the year ahead.

Q: Would any of these quarters in 2027 potentially be less than double digits just because of what you have to lap?

A: I'm going to keep to our double - digit growth aspiration.

Q: What's the latest on m&a readiness?

A: We're ahead of the plan, but we want to do accretive acquisitions that are good for EPS.

Q: How much should we attribute the step up in Q4 trade promotion spend to Instacart Costco commentary and how much to broad - based factors?

A: The credit goes to the team. We're investing in the future with trade, and we look at trade week to week, month to month.

Q: Update on input pricing just around chicken and beef?

A: Beef has some stability but we're proactive. Chicken has its trends, and we're working on trimming, procurement, etc.

Q: How's the process of managing legacy product portfolio at Crown gone?

A: It's on track, with hope that Crown's revenue is flat for the year with price increases and adjusting items.

Q: Should we use Q4 gross margin as a new baseline?

A: Gross margin has ups and downs due to seasonality, but we feel confident it will be higher a year from now.

Q: Mix between branded and private label and demand?

A: Branded is accelerating with more wins in branded products.

Q: Progress on transitioning chicken products to antibiotic - free?

A: 100% of purchased chicken is NAE chicken.

Q: Number of regions in Costco and expansion?

A: We're in multiple regions and constantly working to expand with new items and rotations.