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Mama's Creations Q1 Earnings Beat Estimates, Sales Increase Y/Y

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Key Takeaways

  • MAMA beat Q1 earnings and revenue estimates, with sales rising 50% year over year.
  • MAMA grew through wider distribution, new products, Bay Shore and Costco strength.
  • MAMA's adjusted EBITDA increased 71.2%, while gross margin fell 250 bps.

Mama's Creations, Inc. (MAMA - Free Report) reported first-quarter fiscal 2027 results, wherein both the top and bottom lines beat the Zacks Consensus Estimate and increased year over year.

MAMA’s Quarterly Performance: Key Metrics and Insights

Mama’s Creations posted quarterly earnings of five cents per share, which beat the Zacks Consensus Estimate of three cents. The metric increased 67% from the prior-year period.

Mama's Creations, Inc. Price, Consensus and EPS Surprise

Mama's Creations, Inc. Price, Consensus and EPS Surprise

Mama's Creations, Inc. price-consensus-eps-surprise-chart | Mama's Creations, Inc. Quote

The company reported total revenues of $52.8 million, which beat the Zacks Consensus Estimate of $52 million. The metric rose 49.7% year over year. This growth was driven by expanded distribution and item penetration across both new and existing customers, the successful introduction of new branded products with major retailers, the contribution from the Bay Shore acquisition and continued strength at Costco. These results were achieved despite lapping a nearly $10 million digital Costco MVM in the prior-year quarter and with significantly lower trade investment.

Gross profit increased 35.3% to $12.4 million from $9.2 million in the year-ago quarter. The gross margin decreased 250 basis points (bps) to 23.6% compared with 26.1% in the first quarter of fiscal 2026. The margin was impacted by labor and raw material inefficiencies associated with the ramp-up of new packaging technologies and protein form factors supporting the launch of more than a dozen new products with major retailers, as well as ongoing integration activities at the Bay Shore facility.

Operating expenses were $9.8 million, up from $7.6 million in the year-ago quarter. As a percentage of sales, operating expenses decreased 310 bps to 18.5% in the first quarter of fiscal 2027. 

Adjusted EBITDA totaled $4.9 million in the first quarter of fiscal 2027. The figure increased 71.2% from $2.8 million in the prior-year quarter.

MAMA’s Financial Snapshot

Mama’s Creations ended the quarter with cash and cash equivalents of $24.4 million and total shareholders’ equity of $55.4 million. As of April 30, 2026, total debt was $5.1 million. For the three months ended April 30, 2026, the net cash flow provided by operations was $5 million.

This Zacks Rank #4 (Sell) stock has fallen 8.2% in the past three months compared with the industry’s decline of 9.6%.

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