Mama's Creations Reports $3.7M Net Income, 19% Sales Growth for Fiscal Year Ending January 31, 2025

Mama's Creations, Inc. reported a net income of approximately $3.7 million for the fiscal year ending January 31, 2025, a decrease from $6.6 million in the previous year. The company's net sales increased by 19% to $123.3 million, up from $103.3 million in 2024, driven by higher sales volumes and new product introductions. However, the gross profit margin fell to 25% from 29% due to manufacturing inefficiencies and rising commodity costs, particularly for chicken. Operating expenses also rose by 20% to $25.7 million, primarily due to increased advertising, legal settlements, and professional fees associated with corporate growth.

In terms of strategic developments, Mama's Creations completed the acquisition of Chef Inspirational Foods, LLC (CIF) in June 2023, which is expected to enhance its product offerings and market reach. The company has also rebranded from MamaMancini's Holdings, Inc. to Mama's Creations, Inc., reflecting its broader focus on a variety of prepared foods beyond Italian cuisine. The company aims to position itself as a one-stop-shop deli solutions provider, leveraging its diverse product portfolio and vertical integration.

Operationally, Mama's Creations serves over 10,000 grocery and convenience stores across the United States. The company reported an increase in inventory levels, which rose to $4.8 million, reflecting the anticipated demand from new customers and product lines. As of January 31, 2025, the company employed 305 full-time staff, maintaining a stable workforce to support its operations. The company’s customer concentration remains significant, with one customer accounting for approximately 44% of gross sales, highlighting a potential risk if that relationship were to change.

Looking ahead, Mama's Creations is focused on expanding its distribution channels and enhancing product innovation to capture new consumer segments. The company plans to invest in marketing strategies to drive sales velocities and is exploring additional acquisitions to strengthen its market position. Despite the challenges posed by rising costs and competitive pressures, management believes that the company's growth initiatives will support its goal of achieving $1 billion in sales in the future. However, the company acknowledges the need for additional capital to finance its growth strategy, which may impact its operational flexibility.