Yahoo Finance Mama's Creations Inc (MAMA) (Q4 2024) Earnings Call Transcript Highlights: Robust Growth and ...
Revenue Growth (Q4): Increased 17% to $26.7 million from $22.8 million year-over-year.
Annual Revenue Growth: Rose 11% to $103.3 million from $93.2 million.
Gross Profit (Q4): Up 22% to $7.8 million, representing 29.3% of total revenues.
Annual Gross Profit: Increased 56% to $30.3 million, or 29.4% of total revenues.
Net Income (Q4): $1.4 million, or $0.04 per diluted share.
Annual Net Income: $6.5 million, or $0.17 per diluted share.
Adjusted EBITDA (Q4): Increased 22% to $2.9 million.
Annual Adjusted EBITDA: Rose 161% to $11.7 million.
Cash and Cash Equivalents: Grew to $11 million from $4.4 million year-over-year.
Total Debt: Stood at $8.7 million as of January 31, 2024.
Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you unpack the revenue growth a bit more, specifically regarding cross-selling, sales velocity, and new customers? A: Adam Michaels, CEO, highlighted that the revenue growth was broad-based, emphasizing three main areas: successful cross-selling with major clients like Albertsons, acquiring new customers particularly on the West Coast and through Costco, and effective trade promotions that enhanced sales velocity, especially with end cap promotions.
Q: Regarding the double-digit revenue growth target for 2025, what should the cadence look like throughout the year? A: Adam Michaels, CEO, expects a progression in growth as the year advances, attributing this to the ramp-up period for the newly formed sales team. He anticipates stronger performance in the latter half of the year despite tougher comparisons.
Q: Can you provide more details on the level of trade promotion in the quarter and its impact? A: Adam Michaels, CEO, noted that trade promotion was still in the low single digits but had increased by about 85%. He emphasized the significant impact of these promotions on revenue growth, which contributed to a 17% increase.
Q: What is the timing and expected impact of the CapEx projects, particularly those aimed at increasing capacity and efficiency? A: Adam Michaels, CEO, explained that several CapEx projects, like new grills and chicken strippers, are already operational or will be soon, contributing to efficiency and safety. These improvements are expected to significantly enhance operational capabilities and margins.
Q: Can you update us on the C-store channel opportunities and any progress made there? A: Adam Michaels, CEO, shared that the company is actively engaging with distributors and has seen early success, expecting more substantial results in Q3. He highlighted new product adaptations, like microwaveable packaging for C-store suitability.
Q: How long will it take to reach the 10% target for trade spend, and can you share examples of successful promotions? A: Adam Michaels, CEO, anticipates reaching the 10% trade spend target by next year. He shared successful promotional strategies like multi-buy offers and leveraging national food days, which significantly boosted product visibility and sales.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
