0001628280-26-025068
SEC filingRevenue grew 39% to $171.7M driven by Crown 1 acquisition and volume growth, with gross margin flat at 25%.
Mama's Creations, Inc. describes itself as a leading marketer and manufacturer of fresh deli-prepared foods, with products available in over 12,000 grocery, mass, club, and convenience stores nationwide. Born from MamaMancini's Italian heritage, the company now offers a broad portfolio of high-quality, all-natural, and easy-to-prepare foods. Its vision is to become a one-stop-shop deli solutions platform through vertical integration and a family of brands.
The company operates through several brands that collectively form its product lineup, though no formal reporting segments with revenue breakdowns are disclosed. The primary brands are MamaMancini's (core Italian-style prepared foods), T&L Creative Salads (salads and savory items), Olive Branch (olives and olive mixes), and Crown 1 Foods (value-added proteins and ready-to-heat meals, acquired in September 2025). These brands share manufacturing facilities and distribution networks.
Key products include chicken, beef, and turkey meatballs, meat loaf, sausage-related products, pasta and rice entrees, salads, olives, and paninis. The company holds five trademarks, including 'MamaMancini's,' 'The Meatball Lover's Meatball,' 'The Original Meatball in a Cup,' 'The Olive Branch,' and 'Mama's Creations.' Its recipes are protected as trade secrets under a 50-year exclusive license agreement with founder Dan Dougherty.
Products are sold primarily through a commission broker network to large retail chains such as supermarkets, club chains, mass-market retailers, and food distributors. The company also sells to food distributors who supply smaller retailers. All sales are within the United States, and the company actively solicits business with almost every major retail supermarket chain nationwide. No significant customer concentration is disclosed.
The deli-prepared food industry is highly competitive, with a wide range of local and national competitors. The company competes on product quality, breadth of offerings, customer service, and innovation. It does not name specific competitors but emphasizes that some competitors may have different strategic objectives or investment priorities.
The company's growth strategy comprises four pillars: (1) building breadth and depth of distribution by cross-selling existing and new brands to current customers and entering new channels; (2) launching consumer-driven innovation, such as retail-pack paninis for snacking and convenience stores; (3) pursuing accretive, complementary acquisitions in new deli categories, capitalizing on the fragmented fresh prepared foods space; and (4) becoming a one-stop-shop deli solution with a target of $1 billion in sales through organic growth and M&A.
As of January 31, 2026, the company employed 581 full-time employees and 1 part-time employee. None are covered by collective bargaining agreements. The company focuses on attracting, developing, and retaining talent through equity incentive plans and a robust benefits package, aiming to foster an inclusive work environment.
For the fiscal year ended January 31, 2026, Mama's Creations reported net sales of $171.7 million, a 39% increase from $123.3 million in the prior year. The growth was driven by three factors: approximately $21.4 million from higher sales volume (expanded production capacity, new customer additions, and promotional activities), $3.8 million from pricing actions, and $23.2 million contributed by the Crown 1 Business acquired in September 2025. Gross profit rose 41% to $43.0 million, but gross margin remained flat at 25% due to higher costs of commodities, particularly proteins, which were partially offset by operational efficiencies. Operating expenses increased 40% to $35.9 million, but as a percentage of sales they held steady at 21%. Key expense drivers included a $3.7 million rise in payroll (new executive hires and performance-based compensation), $1.8 million in commissions and royalties (in line with sales growth), $1.6 million in freight (offset by load-sharing benefits), $1.3 million in advertising (digital strategies), $1.7 million in professional fees ($1.3 million of which were transaction costs for Crown 1), and a $0.9 million increase in office/computer expenses. These were partly offset by a $1.0 million decrease in director-related expenses due to a prior-year one-time legal settlement of $0.9 million. Other expenses increased by $0.09 million to $0.26 million. Net income rose 42% to $5.3 million, reflecting strong revenue growth and acquisition benefits.
The company operates as a single segment within the fresh deli-prepared foods market. No segment-level breakdown is provided in MD&A. The overall revenue mix shifted toward the Crown 1 acquisition, which contributed 13.5% of fiscal 2026 sales. Volume growth from existing operations (excluding Crown 1) accounted for 12.5% of the increase, indicating healthy organic momentum.
Management expects that tariff volatility will have a limited and manageable impact due to domestic sourcing and manufacturing. However, the company continues to face rising fuel, freight, and labor costs, which it aims to offset through efficiency improvements and price increases to customers. No specific numeric guidance is provided. The company believes its cash resources—bolstered by a $5.5 million line of credit, a term loan with $5.4 million outstanding, and $19.95 million in cash—will be sufficient for at least twelve months, though additional funding may be sought to finance growth initiatives.
As of January 31, 2026, Mama's Creations held $19.95M in cash and cash equivalents, up from $7.15M a year earlier, primarily due to a $18.9M equity private placement in September 2025. The company’s total debt (term loans plus finance leases) stood at $6.57M, roughly flat versus the prior year ($6.67M in 2025) after net repayments. Shareholders' equity more than doubled to $52.62M from $24.90M, reflecting the equity raise and $5.29M in net income. Inventory grew to $9.65M, up from $4.82M, driven by the Crown 1 acquisition and organic growth.
The notes to the financial statements disclose a one-year purchase commitment for chicken, with minimum and maximum poundage of 14.5 million and 16.6 million pounds, respectively, under a formula-based pricing agreement. Royalty obligations under a 50-year license agreement require a minimum $125,000 annual royalty, with actual royalties of $961,000 in fiscal 2026. Operating lease commitments total $8.99M undiscounted, with $7.89M recognized as liabilities. Finance lease obligations are $1.40M undiscounted.
Mama's Creations did not repurchase any shares or pay dividends during the fiscal year. The company’s primary capital allocation actions were funding the $17.3M Crown 1 acquisition (cash consideration) and investing $1.65M in property, plant, and equipment (capex at 0.96% of sales). The acquisition was partially financed by a $19M non-revolving credit line, of which $5.9M was converted to a term loan; the remainder was repaid. Additionally, the company issued 184,286 shares of common stock valued at $1.5M to settle a related-party promissory note. There were no new buyback authorizations.
The company reports as a single operating segment. The CEO, as CODM, uses net income as the primary performance measure. Gross revenue is disaggregated geographically: Northeast ($59.9M), Southeast ($41.0M), Midwest ($38.8M), and West ($41.0M) for fiscal 2026. The segment’s net income was $5.29M, with operating expenses detailed as research and development ($0.29M), direct variable costs (commissions, royalties, freight – $11.2M), and other SG&A ($24.4M).
A key risk is reliance on two major customers (38% and 17% of gross sales). Loss of either could materially impair revenue and financial condition. Additionally, retailer consolidation increases bargaining power, pressuring pricing and terms.
Single-source dependence and raw material cost volatility (agricultural commodities, packaging) are significant. Supply disruptions from weather, natural disasters, or supplier instability could halt production. Product recalls have occurred; future recalls could cause losses and reputational harm.
FDA, USDA, FTC oversight is extensive. Changes to the 'all-natural' definition (e.g., USDA) could force labeling changes, impacting brand positioning. Political instability, government shutdowns, and tax reforms add uncertainty.
Intense competition from larger firms with more resources. As a smaller player, gaining shelf space and brand loyalty is challenging. Economic downturns may drive consumers to cheaper alternatives.
Cybersecurity threats are rising; while no material incidents to date, increased targeting is expected. System failures could disrupt operations and lead to data loss.
Need for additional capital if growth exceeds expectations. Limited trading volume and Nasdaq listing requirements pose liquidity and volatility risks. No dividends are expected.
Potential material weaknesses in internal control over financial reporting could result in inaccurate reporting, regulatory sanctions, and loss of investor confidence.
The provided document excerpt does not contain the actual cash flow statement figures. The cash flow statement is referenced on page F-11 but the numerical data is not included. Therefore, no analysis can be performed.