Mama’s Creations Inc (NASDAQ:MAMA) stock fell 4.80% (As on September 11, 11:33:13 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 24. Commodity prices increased as of late to historic highs, particularly in chicken. The company have accelerated CapEx investments to improve the value chain, which are now allowing the company to avoid third-party upcharges and reduce labor costs. Recent CapEx investments to improve chicken processing capabilities and related disruptions from construction efforts impacted margins during the quarter, but are expected to more than double the chicken capacity. With construction having been largely completed in September, the company now expects margins and chicken throughput to improve materially.

Further, the company has recently appointed end-to-end supply chain leader Skip Tappan as the Chief Operating Officer, bringing over 30 years of experience as a senior supply chain executive with significant end-to-end supply chain mastery from time with Gordon Food Service, Walmart, Campbell Soup and Procter & Gamble.

MAMA in the second quarter of FY 24 has reported the adjusted earnings per share of 3 cents, beating the analysts’ estimates for the adjusted earnings per share of 2 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 14 percent to $28.38 million in the second quarter of FY 24, beating the analysts’ estimates for revenue by 2.09%. The increase was largely attributable to successful pricing actions, as well as volume gains driven by increased demand, successful trade promotions, same-customer cross selling of new items and new customer door expansion. Gross profit totaled $6.9 million, or 24.2% of total revenues, in the second quarter of fiscal 2025, as compared to $7.5 million, or 30.3% of total revenues, in the same year-ago quarter. Net income for the second quarter of fiscal 2025 totaled $1.1 million as compared to net income of $1.7 million in the same year-ago quarter. Second quarter net income totaled 4.0% of revenue, as compared to 7.0% in the same year-ago quarter. Adjusted EBITDA, a non-GAAP measure, totaled $2.7 million for the second quarter of fiscal 2025, as compared to $3.0 million in the same year-ago quarter. Cash and cash equivalents as of July 31, 2024 totaled $7.4 million, as compared to $11.0 million as of January 31, 2024. The change in cash and cash equivalents was primarily driven by $3.5 million in capital investments and $2.0 million of debt paydown. As of July 31, 2024, total debt stood at $6.8 million.