Overview

* Mama's Creations Q2 revenue grows 24% yr/yr, beating analysts' expectations

* Adjusted EBITDA increases 18% yr/yr, beats estimates

* Co acquires Crown 1 Enterprises, adding $56 mln in annual sales

Outlook

* Company expects $56 mln revenue from Crown 1 acquisition by June 2025

* Company targets $1 bln revenue run rate by 2030

* Company plans cost synergies from Crown 1 acquisition by next fiscal year

* Company to focus on rapid integration of Crown 1 acquisition

Result Drivers

* VOLUME GAINS - Revenue growth driven by cross-selling new items and expanding customer doors

* EFFICIENCY IMPROVEMENTS - Operational efficiency improvements contributed to increased gross profit despite chicken commodity headwinds

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $35.20 $33.60

Revenue mln mln (4

Analysts

)

Q2 EPS $0.03

Q2 Net $1.30

Income mln

Q2 Beat $3.30 $2.46

Adjusted mln mln (3

EBITDA Analysts

)

Q2 Gross $8.80

Profit mln

Q2 $7.10

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "buy"

* Wall Street's median 12-month price target for Mama's Creations Inc is $11.00, about 14.2% above its September 5 closing price of $9.44

* The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)