Mamamancini’s Holdings Inc (NASDAQ:MMMB) stock rose 2.51% (As on Dec 15, 11:15:07 AM UTC-4, Source: Google Finance) though the company missed the earnings estimates for the third quarter of FY 21. Gross profit totaled $2.7 million, or 25.2% of total revenues, in the third quarter of fiscal 2022, as compared to $2.9 million, or 30.1% of total revenues, in the same year-ago quarter. The lower gross profit margin in the third quarter was due to higher cost of protein and cost of freight in for all elements of supply. The Company expects gross margins will improve by fiscal year-end as commodity prices normalize and higher production volumes will result in higher plant operating efficiencies, and significant price increases come into effect. The company has reported net loss for the third quarter of fiscal 2022 totaled ($0.0) million, as compared to a net income of $0.7 million, in the same year-ago quarter. Cash and cash equivalents as of October 31, 2021 were $4.5 million, as compared to $1.8 million in the same year-ago quarter and $3.2 million as of January 31, 2021. The increased cash balance benefitted from $2.1 million in cash flow from operations year-to-date. The company faced continued supply chain headwinds as well as record increases in protein commodity pricing in the third quarter, which temporarily impacted margins, the company is implementing significant price increases and expect to see margin improvement by year-end.

MMMB in the third quarter of FY 21 has reported the adjusted earnings per share of 0 cents, missing the analysts’ estimates for the adjusted earnings per share of 2 cents. The company had reported the adjusted revenue growth of 12.1 percent to $10.9 million in the third quarter of FY 21, on the back of major new business with Whole Foods and Publix. Operating expenses totaled $2.7 million in the third quarter of fiscal 2022, as compared to $2.1 million in the same year-ago quarter. As a percentage of sales, operating expenses totaled 25.1% in the third quarter of fiscal 2022, as compared to 21.9% in the same year-ago quarter. Operating expenses in the third quarter were affected by over $300,000 in increased logistics expenses, higher marketing expenses of approximately $100,000, which were introductory demonstration expenses for a new rotational retail item at a major national retailer, as well as over $150,000 in increased corporate infrastructure expenses in the quarter, including higher Director fees, costs related to the Company’s NASDAQ-listing, increases in corporate management to handle new acquisitions, new management systems and recruiting costs.