Mama's Creations Inc Q4 2025 Earnings Call Transcript

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

Question: George Kelly - Roth Capital Partners, LLC - Analyst : Maybe I'll start with a couple on pricing. I was curious if you could break down your growth in 4Q by pricing and volume. And then I think you said in your prepared remarks that you were -- had either just taken pricing or you were planning on taking pricing. And I'm curious if I heard that right, how much additional pricing you plan taking.

Question: George Kelly - Roth Capital Partners, LLC - Analyst : And just like sort of round numbers or just ballparking, do you plan on -- would this be all in like a low to mid-single-digit pricing increase if you look at -- ?

Question: George Kelly - Roth Capital Partners, LLC - Analyst : Okay. Understood. And then just one more question, and then I'll hop back in the queue. A couple of months ago at your Analyst Day, you offered up some guidance for this fiscal year, this upcoming fiscal year 2026. You talked about double-digit revenue growth and then I think EBITDA margin

Question: Eric Des Lauriers - Craig-Hallum Capital Group - Analyst : Congrats on -- you had another strong quarter here. So my first two questions are kind of around commodity pricing and these protein contracts, certainly good timing with locking in some fixed pricing here. So just first on the chicken breast pricing, that's really kind of taken off in recent months and much more so than other aspects of chicken pricing. I'm just wondering if you have any sort of view on what's driving the greater price increases on breast versus other parts of chicken and if you have any views on how that may trend throughout the year. Obviously, a bit of a crystal ball question at the end there, but I'm just wondering your views on chicken breast pricing versus chicken pricing in general.

Question: Eric Des Lauriers - Craig-Hallum Capital Group - Analyst : Yes. No, that's very helpful. And then just as kind of a follow-on here. So you guys are contracted for now over half of your protein needs. I think that might even be a slight increase in the last time you spoke on that topic. But just in general, I wonder if you can kind of drill down on that a bit more. Should we think of this as 50%-plus of your protein purchases every week or month are spot -- or excuse me, are fixed price and the balance is spot? Or is it more like you guys are contracted for the first six-months and the last six-months are supposed to spot pricing. Just wondering if you can kind of drill down into what exactly being contracted for 50% of your needs means?

Question: Eric Des Lauriers - Craig-Hallum Capital Group - Analyst : All right. That's very helpful. And good to hear as well. Last question from me. So obviously, utilizing the breast trimmings is going to be a big driver of your gross margin or at least product margin improvement throughout the year. You've laid out this goal of going from a small minority now to the majority of your checking being trimmed in-house by midyear. Just wondering if you could kind of step us through that a bit more. Obviously, you have these new products that are utilizing the breast trimmings. Maybe just any kind of comments on how those are faring in the market right now? And maybe how much -- when you look at your total distribution, like how penetrated are you with these new products now? And how will that change by midyear to help get you to that majority of checking trends in house? 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 08, 2025 / 8:30PM, MAMA.OQ - Q4 2025 Mama's Creations Inc Earnings Call

Question: Nicholas Sherwood - Maxim Group LLC - Analyst : My first question relates to the rollout at Walmart locations. It started with 2 SKUs at 2,000 stores. Is there any increased demand to add more SKUs to that rollout or increase the store count? Can you kind of give us an update on how that's been proceeding?

Question: Nicholas Sherwood - Maxim Group LLC - Analyst : Understood. And then my next question is related to trade promotions. I noticed that it looked like trade session was down quarter-to-quarter and then also year-over-year. Can you talk about how -- I know increasing trade pressure is one of the key growth drivers that you've laid out to us, are you planning on ramping that up in the first half of this fiscal year? And also, how is some of that trade promotion interacting with the pricing that you've taken recently and you're planning to take in the next couple of months.

Question: Nicholas Sherwood - Maxim Group LLC - Analyst : Understood. And then my last question is in a previous press release, you said that a lot of your sourcing -- you're not going to be affected by the tariffs for your product sourcing, but you've talked the construction at Farmingdale is done, and now you're moving to expand the East Rutherford facility. Are you seeing tariffs impacting any sort of sourcing of business -- I mean, building materials or machinery related to that?