Mamamancini’s Holdings Inc (NASDAQ: MMMB) stock fell 2.82% (As on June 16, 10:53:46 AM UTC-4, Source: Google Finance) after the company in the first quarter of FY 23 has reported the 111.7% rise in the revenue to a record $21.8 million, as compared to $10.3 million in the same year-ago quarter. The revenue increase for the quarter was primarily a result of the first full quarter from the December 2021 acquisition of T&L Creative Salads, Inc. and Olive Branch LLC. Gross profit increased to $3.9 million, or 17.7% of total revenues, in the first quarter of fiscal 2023, as compared to $3.3 million, or 32.4% of total revenues, in the same year-ago quarter. The margin compression was caused by inflation of raw materials, packaging and freight costs – as well as lower margins in the T&L Creative Salads and Olive Branch LLC business lines, partially offset by the low overhead of the acquired businesses. Management believes the balance between inflated raw materials costs and the Company’s price increases will normalize in the second quarter, returning gross profit margins to its historical range. Net income for the first quarter of fiscal 2023 totaled $0.1 million, or $0.00 per diluted share, as compared to a net income of $0.6 million, or $0.02 per diluted share, in the same year-ago quarter. Adjusted EBITDA, a non-GAAP term, totaled $0.7 million for the first quarter of fiscal 2023, as compared to $1.1 million in the same year-ago quarter. Cash and cash equivalents as of April 30, 2022 were $0.9 million, as compared to $0.9 million at January 31, 2022. Operating expenses totaled $3.6 million in the first quarter of fiscal 2023, as compared to $2.5 million in the same year-ago quarter. As a percentage of sales, operating expenses totaled 16.5% in the first quarter of fiscal 2023, as compared to 24.2% in the same year-ago quarter. Operating expenses in the first quarter increased mainly due to transportation rate increases, fuel surcharges and acquisition related expenses.

On the other hand, the company had recently announced that it is introducing a new line of fully cooked authentic Italian foods using Beyond Meat’s plant-based Beyond Beef product. The new range will include ‘Beyond Beef Meatballs & Sauce’, as well as vegan and gluten-free based ‘Spaghetti and Beyond Beef Meatball Pasta Bowls’. Currently, MamaMancini’s products are sold at 45,000 locations in food retailers across the US, including at big names like Walmart, Kroger and Costco.