Mama’s Creations started fiscal 2027 with revenue of $52.8 million in the first quarter, up 49.7% from $35.3 million a year earlier. Gross profit rose 35.3% to $12.4 million, while gross margin slipped to 23.6% from 26.1%.
Operating expenses increased to $9.8 million from $7.6 million, but fell as a share of revenue to 18.5% from 21.6%. Net income climbed 66.3% to $2.1 million, or $0.05 per diluted share, from $1.2 million, or $0.03 per share. Adjusted EBITDA rose 71.2% to $4.9 million from $2.8 million.
Cash and cash equivalents ended the quarter at $24.4 million, up from $20.0 million at the end of January. Total debt was $5.1 million.
The company said growth came from item expansion at new and existing customers, new branded launches with major retailers, the Bay Shore acquisition, and continued strength at Costco, despite lapping nearly $10 million in digital Costco promotional volume in the prior-year quarter. It also said it launched more than a dozen new items with Walmart, Target and Food Lion, and won Costco everyday item status for branded beef meatballs in the San Diego region.
Mama’s Creations said the Bay Shore ERP transition was completed during the quarter, giving the company a single system for sales, procurement, production, inventory and accounting. Today the company's shares have moved -5.92% to a price of $14.30. For the full picture, make sure to review Mama's Creations's 8-K report.
