Mama's Creations Inc Q4 2024 Earnings Call Transcript

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

Question: Ryan Meyers - Lake Street Capital Markets, LLC - Analyst : Hey, guys. Congrats again on another solid quarter. First question for me, just wondering if you could unpack the revenue growth a little bit and where you saw the biggest impact you guys called out in the prepared remarks, cross-selling sales velocities across new customers, marketing program. Just want to get a good feel for if that was pretty broad-based or if there was sort of one-off things that drove a lot of the revenue growth for the quarter?

Question: Ryan Meyers - Lake Street Capital Markets, LLC - Analyst : Got it. That's helpful. And then, if we think back to the Analyst Day, you guys gave the double-digit revenue growth target for 2025. I just want to get a feel for what the cadence of that will look like. Obviously, you will face easier comps in the first half of the year here. You're already almost through April, and then the comps obviously get a little bit tougher in the second half. But at the same time, you have the promotions and all the things that you just talked about coming through to the model. So I just want to get a good understanding for how we should be thinking about the revenue growth cadence throughout the year.

Question: Ryan Meyers - Lake Street Capital Markets, LLC - Analyst : Got it. Thank you for taking my questions.

Question: Eric Lauriers - Craig-Hallum Capital Group LLC - Analyst : Great. Thank you for taking my questions and congrats again on another strong quarter.

Question: Eric Lauriers - Craig-Hallum Capital Group LLC - Analyst : First one from me -- yeah, no problem. First one from me, just on the trade promotion. Wondering if you can kind of expand a bit more about the level of trade promotion in the quarter. I think in the prepared remarks, you mentioned low single digit. You did also mention just in the -- I think the first question there that trade promotion actually did start to kind of have an impact in Q4. So just wondering if you can help us understand the level of trade promotion and sort of how that trended throughout the year into Q4 and maybe how to think about that going forward. Just kind of if you could zoom into this low single digit comment a bit more, that'd be helpful. Thanks.

Question: Eric Lauriers - Craig-Hallum Capital Group LLC - Analyst : It's very helpful color. Certainly, 80%-plus growth year over year is very impressive here. My next question, just looking for a bit of an update timing-wise on some of these CapEx projects. I think there was perhaps the comments of pulling some of these CapEx projects forward a bit with some of this chicken inflation that you're seeing. So obviously, we don't need to go through all of the pieces of equipment that you're ordering here, but maybe if you can kind of talk about the CapEx projects that you have to sort of increase capacity. You have others to get earlier in the value chain. Maybe if you could just kind of help us think high level of the timing of some of these projects and when you expect that impact to hit the numbers. Thanks.

Question: Eric Lauriers - Craig-Hallum Capital Group LLC - Analyst : That's great to hear. My last question here, I was just looking for an overall update on the C-Store channel opportunity. I think on the Analyst Day, we kind of discussed that going after the distributors as opposed to the retailers themselves seem to kind of unlock some opportunities. So I'm just wondering if there's any update to share with the C-Store channel opportunity. Thanks.

Question: Eric Lauriers - Craig-Hallum Capital Group LLC - Analyst : Super. Helpful commentary. Congrats again.

Question: George Kelly - Roth Capital Partners, LLC - Analyst : Hey everybody. Thanks for talking my questions (multiple speakers) So first question for you on your trade spend, I was curious, you've given that 10% target. I'm curious, how long do you think it's going to take to get there? And then part two of the question is, still on trade spend, can you give us specific examples of some promotions or different spending sort of measures that have been successful thus far? And where you could really kind of lean into as you're expanding your budget there?

Question: George Kelly - Roth Capital Partners, LLC - Analyst : Okay. No. That's great. That's helpful. Thank you. And then another question. I'm trying to reconcile the comment in your prepared remarks just about commodity pricing. And then reconciling that with the 10% spend, getting something close to that at the end of this year is a really rapid increase to that budget. And then I think you said that you still anticipate gross margin, even with all these investments and everything, of close to 30%. So just trying to understand the magnitude of the commodity inflation that you've seen, I think you highlighted in chicken. How should we think about all those factors at play, I guess?

Question: George Kelly - Roth Capital Partners, LLC - Analyst : Okay, excellent. And just one more, if I could, the M&A pipeline, I'm curious, you've said before that your expectation is that you'd complete one, or maybe it was at least one deal this year. I'm curious if you still think that's the case in like, as you're talking to people, is there a common sort of issue that is a hang up and causes nothing to happen? Maybe it's pricing, maybe it's something else. Just is there something that's repeated now that has caused you to not consummate any of these potential transactions?

Question: George Kelly - Roth Capital Partners, LLC - Analyst : Yeah, Thank you.

Question: Anthony Vendetti - Maxim Group, LLC - Analyst : Thanks. Yeah, just a couple of quick questions. On the new equipment, Adam, and I know you've gotten into detail on this, on the new equipment you're putting in, what is the incremental upside to operating margins when all that new equipment is installed and fully operational? And then also, if you could talk about the integration from the NetSuite ERP, where that's at and what's the incremental upside in terms of margins when that's fully up and running?

Question: Anthony Vendetti - Maxim Group, LLC - Analyst : Okay. So the margin improvements that you had that you're already realizing on from these capital equipment purchases and the new ERPs, all this is going back into accelerating the top line. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2024 / 8:30PM, MAMA.OQ - Q4 2024 Mama's Creations Inc Earnings Call

Question: Anthony Vendetti - Maxim Group, LLC - Analyst : Okay, great. All right. I'll turn it back over to you, hop back in the queue. Thanks. Thanks for all that color.