Mama’s Creations Inc (NASDAQ:MAMA) stock fell 0.51% (As on December 13, 11:08:59 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 24. The increase was largely attributable to volume gains driven by same customer cross-selling, the acquisition of new customers and successful pricing actions. Gross profit increased 31.6% to $8.6 million or 30.1% of total revenues in the third quarter of fiscal 2024 as compared to $6.6 million or 25.5% of total revenues in the same year ago quarter. The increase in gross margin was primarily attributable to successful pricing actions. The normalization of commodity costs and improvements in procurement, manufacturing and logistics efficiencies. Net income for the third quarter of fiscal 2024 increased 83% to $2 million, as compared to a net income of $1.1 million in the same year ago quarter. Adjusted EBITDA, a non-GAAP term increased 67.6% to $3.5 million for the third quarter of fiscal 2024 as compared to an adjusted EBITDA of $2.1 million in the same year ago quarter. Cash and cash equivalents as of October 31st, 2023, were $5.66 million as compared to $4.4 million as of January 31, 2023. The increase in cash and cash equivalents was driven by $1.5 million in cash flow from operations in the third quarter of fiscal 2023 was $1 million of which was used to pay down the company’s debt. As of October 31, 2023, total debt stood just under $10 million.

MAMA in the third quarter of FY 24 has reported the adjusted earnings per share of 5 cents, beating the analysts’ estimates for the adjusted earnings per share of 4 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 11.5 percent to $28.65 million in the third quarter of FY 24, beating the analysts’ estimates for revenue by 9.55%.

Meanwhile, the company has launched the Company’s first direct-to-consumer e-commerce platform, offering popular MamaMancini’s retail products for delivery throughout the continental United States. In addition, the company has appointed veteran finance leader Lynn L. Blake to its Board of Directors and as Chair of the Audit Committee, bringing over 30 years of financial leadership and public market experience.

The company’s long-term goal, leveraging strategic CapEx investments, procurement efficiencies and continuous operational efficiencies would be targeting margins consistently maintained in the low 30% range while rightsizing the trade promotion investments.