Mama’s Creations Earnings: Revenue Growth, Crown I Acquisition, and Margin Pathway
- Hardik Shah
- Sep 9
- 3 min read
TLDR
Revenue Strength: Net sales rose 24% to $35.2M, driven by volume gains, new customers, and cross-selling.
Margin Trends: Gross margin improved to 25%, with integration of Crown I expected to lift long-term profitability.
Forward Outlook: Management eyes $200M run-rate revenue, margin recovery toward high-20s%, and ongoing M&A discipline.
Business Overview
Mama’s Creations, Inc. is a branded food manufacturer and marketer specializing in all-natural refrigerated and prepared foods, including meatballs, chicken, pasta meals, and deli offerings. Its portfolio includes MamaMancini’s, Creative Salads, Olive Branch, and Chef Inspirational Foods, selling through club stores, retail chains, e-commerce, and foodservice channels.
The company’s distribution spans major U.S. regions, with particular strength in the Midwest and Southeast, which saw the fastest growth this quarter.
Mama's Creations Earnings
Revenue:
Q2 FY26 net sales: $35.2M, up from $28.4M (+24% YoY).
Growth driven by cross-selling, new branded placements, and expanded customer doors.
Margins:
Gross profit: $8.8M, or 25% of sales, vs. 24% last year.
Gains stemmed from operational efficiencies and throughput improvements, partly offset by protein cost inflation.
Profitability:
Net income: $1.3M ($0.03/share), up 11% YoY.
Adjusted EBITDA: $3.3M, +18% YoY.
Cash: $9.4M, debt reduced to $2.7M from $6.8M a year earlier.
Forward Guidance
Current revenue run-rate near $200M, bolstered by the Crown I acquisition.
Gross margin expected in the low 20% range short term (reflecting Crown’s mid-teens margin profile), but management targets mid-to-high 20% margins in 12–18 months through procurement, throughput, and efficiency gains.
“We believe that over the next 12 to 18 months, by instilling our operational discipline into Crown’s operations, we can structurally lift our combined gross margin profile from the low 20% range today toward Mama’s historical levels in the mid- to high-20% range.” - CFO Anthony Gruber
Risks & Opportunities:
Opportunities: margin expansion, cross-selling in club and retail, synergies from Crown I.
Risks: protein cost volatility (chicken and beef), competitive pricing pressure, consumer spending sensitivity.
Operational Performance
Efficiency gains from freight management, warehouse automation, and ERP upgrades improved visibility and reduced waste.
Expanded chicken grilling capacity (now 6 grills in Farmingdale, plus Crown’s facility) increased throughput and reduced overtime costs.
“Our operations mantra is one plant, now three locations — and Crown’s proximity allows us to quickly scale efficiency across the network.” - CEO Adam Michaels
Market Insights
Private label growth continues to outpace national brands, particularly in refrigerated products (+13% growth).
Consumers favor protein-rich, refrigerated meals as restaurant inflation drives trade-down to grocery prepared foods.
Consumer Behavior & Sentiment
Consumers view refrigerated prepared foods as high-quality, healthy, and convenient; 77% associate them with premium ingredients.
Mama’s offerings resonate in this space, particularly as families seek affordable, protein-focused meals.
Strategic Initiatives
Acquisition of Crown I Enterprises from Sysco for $17.5M all-cash, adding $56M in annual revenue and expanded customer reach.
New product launches include paninis, chicken meatballs, and ready-to-heat meals, with strong momentum at Costco, Sam’s Club, and Publix.
National Costco mailer secured for Q4, providing wide-scale exposure for Mama’s meatballs.
“Crown I meaningfully advances our path to $1 billion of revenue.” – CEO Adam Michaels
Capital Allocation
Strengthened balance sheet with lower debt and improved liquidity.
Financing for Crown I supported by $27.4M credit facility with M&T Bank.
No dividend or buyback program currently disclosed; reinvestment focused on growth and acquisitions.
The Bottom Line
Mama’s Creations delivered another strong quarter with double-digit revenue growth, margin improvement, and a transformative acquisition. The Crown I deal expands scale, customer reach, and capacity, setting up the company for continued growth. Key watchpoints include integration execution, protein price volatility, and margin trajectory.
Investors should note the company’s disciplined M&A strategy, strengthening balance sheet, and positioning toward its long-term $1 billion revenue target.
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