Mama’s Creations(MAMA)2025-04-08 22:18Financial Data and Key Metrics Changes - Revenue for Q4 fiscal 2025 increased by 25.7% to 26.7 million in the same year-ago quarter [36] - Revenue for fiscal year 2025 increased by 19.4% to 103.3 million in the prior year [36] - Gross profit for Q4 increased by 16.1% to 7.8 million or 29.3% in the same year-ago quarter [37] - Net income for Q4 increased to 0.04 per diluted share compared to 0.04 per diluted share in the same year-ago quarter [42] - Adjusted EBITDA for Q4 increased by 8.8% to 2.9 million in the same year-ago quarter [42] Business Line Data and Key Metrics Changes - Chicken throughput in Q4 was 34% ahead of Q3 and 90% ahead of prior years [18] - The company is focusing on leveraging entire chicken breast for new products, which is expected to significantly improve gross margins [27][90] Market Data and Key Metrics Changes - The away-from-home food spending growth is projected to slide to low single digits in 2025, down from mid-single digits in 2024, indicating a shift in consumer spending habits [10] - Mama's Creations is growing at 19.4% in fiscal 2025, consistently gaining market share [10] Company Strategy and Development Direction - The company aims to emerge as a leading one-stop shop deli solution on a national scale, focusing on capturing generational changes in consumer preferences [9] - A strategic focus on cost, controls, culture, and catapulting growth has been established to improve operational efficiency [15] - The company is exploring potential M&A opportunities while maintaining a strong foundation [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the deli prepared food space, highlighting the operational headwinds from earlier in the year are now behind them [46] - The company is positioned to lead the category, not just as a participant but as a consolidator and category shaper [47] Other Important Information - The company has completed strategic capital investments in its Farmingdale facility, which has more than doubled chicken capacity [8] - The leadership team has been strengthened with new hires, enhancing operational capabilities [24] Q&A Session Summary Question: Can you break down your growth in Q4 by pricing and volume? - Management indicated that over 85% of revenue growth was volume-driven, with pricing adjustments being made continuously based on market conditions [55][56] Question: What is the expected pricing increase? - Management noted that pricing increases may need to be in the low double digits depending on commodity price movements, but they work collaboratively with customers on pricing [59][60] Question: Are you still comfortable with the guidance for fiscal year 2026? - Management expressed confidence in achieving double-digit revenue growth and EBITDA margins in the double-digit range, barring any significant commodity price fluctuations [62][65] Question: Can you provide an update on the rollout at Walmart? - Management reported that the Walmart rollout is performing well, with increased demand for more SKUs and positive feedback on sales performance [97] Question: How are trade promotions interacting with recent pricing? - Management acknowledged a decrease in trade promotions due to the need to maintain gross margins but expressed a desire to increase trade promotions as margins improve [102][103] Question: Are tariffs impacting sourcing or construction? - Management clarified that while there may be secondary impacts from tariffs, the majority of their sourcing is domestically based, and they are proactively managing procurement [105][106]