Mama's Creations Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ryan Meyers - Lake Street Capital Markets - Analyst : It guys. Thanks for taking my questions. First one for me. Obviously, really strong growth during the quarter. Just wondering if you can speak to how we should think about that for the remaining three quarters or do you feel like that can a 29% year over year, growth rate will moderate a little bit. I know on past calls, you've kind of commented at a double digit growth rate for 2025, is that something we should expect or how should we think about that for the rest of the year?

Question: Ryan Meyers - Lake Street Capital Markets - Analyst : Okay, got it. And then thinking about average items carried, I know that number's a little nuanced, including new customers where that number could be a little bit lower. But if we exclude, let's say, new customers, what does that number look like for maybe legacy customers? Just trying to get a good understanding of kind of tracking the progress of the cross-selling that you guys have been able to drive?

Question: Ryan Meyers - Lake Street Capital Markets - Analyst : No, that's super helpful and that's great to hear. That cover the questions I had. Thanks, guys.

Question: Eric Des Lauriers - Craig Hallum - Analyst : Thanks for taking my questions and congrats on the very strong growth this quarter. My question is a bit of a follow-up to what you were just discussing on. So it sounds like a lot of your major customers now have both from legacy model Mancini and legacy olive branch and creative salad products here. So obviously over the past few quarters here, a cross selling and to existing customers has been the biggest driver of growth. I'm wondering now as you look forward. How to think about that sort of growth from existing doors versus growth from new doors and new channels, you highlighted without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 11, 2024 / 8:30PM, MAMA.OQ - Q1 2025 Mama's Creations Inc Earnings Call some and those club rotations. Are you still looking at a couple of big box retailers to get into here. Just wondering how to sort of categorize the growth outlook going forward.

Question: Eric Des Lauriers - Craig Hallum - Analyst : All right. That's very helpful and encouraging to hear. And on the trade promotion, can you just talk about how commodity cost inflation and then seasonality impact of trade promotion spend levels. I mean, presumably on the cost inflation side, if we get commodities cost spike, it sort of limits the amount of surplus gross margin you have to reinvest. So maybe it's just that simple on the commodity cost side, but you have anything to add there or on the seasonality of it that would be helpful. Thank you.

Question: Eric Des Lauriers - Craig Hallum - Analyst : That certainly, makes sense to me. But just last one from me on some of those CapEx improvements. Just wondering if you could give sort of broad timing update on some of the major items here. I mean, feel free to kind of touch on whichever ones you like, but data new freezer line spiral oven and you just kind of update on the timing that would be great. Thank you.

Question: Eric Des Lauriers - Craig Hallum - Analyst : That's great to hear. Thanks so much for taking the questions.

Question: George Kelly - ROTH Capital Partners - Analyst : Hey, everyone, thanks for taking my questions. I will start with gross margin. I was curious if you could walk through your expectations again for Q2 and the back half. And then I'm curious, I know you're anticipating expansion in gross margin versus Q1, how much of that is driven by your pricing? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 11, 2024 / 8:30PM, MAMA.OQ - Q1 2025 Mama's Creations Inc Earnings Call

Question: George Kelly - ROTH Capital Partners - Analyst : Okay, that's helpful. Thank you. And then second question from me, you mentioned in your prepared remarks and just in one of the Q&A answers that you gave just talking about major retail customers. And I think you called it out Walmart and Target in your prepared remarks. I'm curious how close are you to winning those kinds of big flagship partners. Any kind of help you can give with a timing there, what the discussions are like that would be appreciated.

Question: George Kelly - ROTH Capital Partners - Analyst : Okay. That's great. That's all I had. Thank you.

Question: Anthony Vendetti - Maxim Group - Analyst : Thanks. So Adam, you're introducing a lot of new products and now expanding into breakfast with the breakfast wraps. Is that the initial foray into breakfast or are you looking to build out that category? And maybe more just talk about the new products and in general, whether that's in that category or other categories in any other expansion opportunities that we should look for?

Question: Anthony Vendetti - Maxim Group - Analyst : Interesting. Okay. Like I said, it looks like the studies, your initial foray into breakfast. Do you see yourself expanding that category? Like you said it's a large category or is this more of a one-off from a customer and you're going to go back to the original more lunch/dinner deli?

Question: Anthony Vendetti - Maxim Group - Analyst : Okay. And then lastly, on the efficiency and you touched on this, it seems like all your new automated machines are being installed on schedule, is there anything that has to slow down during this installation or is it relatively seamless, and are there any other new efficiencies that you've identified that are in the planning stage for the remainder of calendar year '24? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 11, 2024 / 8:30PM, MAMA.OQ - Q1 2025 Mama's Creations Inc Earnings Call

Question: Anthony Vendetti - Maxim Group - Analyst : Great. Thanks so much for the update, Adam. I will turn it back over to you in the queue.