Mamamancini’s Holdings Inc (NASDAQ:MMMB) stock surges 23.02% (As on December 13, 11:27:29 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 23. Gross profit increased to a record $6.6 million, or 25.5% of total revenues, in the third quarter of fiscal 2023, as compared to $2.7 million, or 24.4% of total revenues, in the same year-ago quarter. Gross profit increased in the third quarter back to targeted levels based on normalization of commodity costs, successful pricing actions and strong sales growth. The Company continues to identify procurement and logistics efficiencies and cost savings through stronger buying power created through the acquisitions of T&L and Olive Branch. Net income for the third quarter of fiscal 2023 totaled $1.1 million, as compared to a net loss of $(0.0) million in the same year-ago quarter. Adjusted EBITDA, a non-GAAP term, increased to $2.1 million for the third quarter of fiscal 2023, as compared to $0.3 million in the same year-ago quarter. Cash and cash equivalents as of October 31, 2022 were $3.5 million, as compared to $0.9 million at January 31, 2022. The increase in cash and cash equivalents was driven by $3.0 million in cash flow from operations in the third quarter of fiscal 2023, $1.5 million of which was used to pay down the Company’s credit line.

MMMB in the third quarter of FY 23 has reported the adjusted earnings per share of 3 cents, beating the analysts’ estimates for the adjusted loss per share of 1 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 137 percent to $25.69 million in the third quarter of FY 23, beating the analysts’ estimates for revenue by 12.20%. The increase in revenue for the third quarter was driven by organic growth across all divisions, chiefly through cross selling, as well as by inorganic growth through the acquisition of T&L and Olive Branch. Operating expenses totaled $5.1 million in the third quarter of fiscal 2023, as compared to $2.7 million in the same year-ago quarter. As a percentage of sales, operating expenses decreased to 19.7% in the third quarter of fiscal 2023, as compared to 24.4% in the same year-ago quarter. Operating expenses, as a percentage of sales, benefited from synergies created through the acquisitions of T&L and Olive Branch. Income from equity method investment in Chef Inspirational Foods totaled $0.1 million in the third quarter of fiscal 2023.