Overview

• U.S. deli prepared foods maker's fiscal Q1 revenue rose 50%, beating analyst expectations

• Adjusted EBITDA for fiscal Q1 rose 71%, beating analyst expectations

• Company cites new product launches and Bay Shore integration as key drivers, with margin impacted by start-up inefficiencies

Outlook

• Mama's Creations remains on track toward mid-to-high 20% corporate gross margin target

• Company expects new items to move from launch into steady-state production

• Mama's Creations cites confidence in sustained, profitable growth and long-term value

Result Drivers

• NEW PRODUCT LAUNCHES - Co said over a dozen new items launched with major retailers drove revenue growth

• BAY SHORE ACQUISITION - Bay Shore acquisition contributed new volume and higher operating expenses, per co

• START-UP INEFFICIENCIES - Gross margin impacted by short-term labor and raw material inefficiencies from new packaging technologies and protein form factors for new launches

Company press release: ID:nGNX3lDgKf

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$52.8 mln	$51.64 mln (6 Analysts)
Q1 EPS		$0.05
Q1 Net Income		$2.1 mln
Q1 Adjusted EBITDA	Beat	$4.9 mln	$4.40 mln (5 Analysts)
Q1 Gross Profit		$12.4 mln
Q1 Operating Expenses		$9.8 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for Mama's Creations Inc is $21.00, about 38.6% above its June 5 closing price of $15.15

• The stock recently traded at 57 times the next 12-month earnings vs. a P/E of 64 three months ago

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