US frozen and refrigerated all-natural foods maker MamaMancini’s has booked its first “modest” profitable quarter.
The company reported net income of US$80,603 for its third quarter, which ran to the end of October, compared to a loss of $975,522 in the year-ago period. Income from operations also improved to $243,563 over a $358,159 loss in the prior year third quarter, MamaMancini’s said.
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Third-quarter sales, net of slotting fees and discounts, were $4.6m, up 41% on the corresponding period a year earlier.
Cash EBITDA for the third quarter was positive $470,959 compared with negative $174,461 in the third fiscal quarter of 2016.
Gross profit for the first nine months of fiscal 2017 was $4.5m, or 36% of sales, compared to $2.6m, or 28% of sales, in the year ago period, the company said. “The increase in gross margin was primarily attributed to increased revenue during the first half of fiscal 2017 from new retail store customers and the exiting of a substantial number of under-performing low margin accounts during the previous fiscal year.”
However, the company booked a net loss for the first nine months of fiscal 2017 of $422,313, compared to a net loss of $3.1m in the year-ago period.
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By GlobalDataMamaMancini’s CEO Carl Wolf said: “Although it is a modest profit for the quarter, we expect to build on these results in the quarters and the years to come. “Over the past year, we have achieved considerable traction on developing larger customers and exiting under-performing accounts that do not generate reasonable returns. Revenue increased 41% and 35% for the third quarter and the first nine months of fiscal year 2017, respectively. We have worked long and hard to get to this point.”
Nine-month revenue stood at $12.6m, versus $9.3m a year ago.
Wolf added: “Having achieved an important strategic goal in breaking into profitability, we are able to be more aggressive in building upon the MamaMancini’s brand. Operationally speaking, we will continue to focus our presence on the perimeter of the retail grocery store, where fresh, minimally or non-processed, healthy foods are offered and the growth opportunities lie.”
