MamaMancini’s Holdings Inc has announced that it boosted its fiscal 4Q revenue by 38.5% following the acquisition during the period of two premier gourmet food manufacturers whose products are highly symbiotic with the company’s existing distribution network.
For the three months ended January 31, 2022, the company posted record revenue of $13.9 million, compared to $10 million for the year-ago quarter.
For the fiscal year to end-January 2022, the company’s revenue increased 15.4% to a record $47.1 million, compared to $40.8 million in fiscal 2021.
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MamaMancini’s CEO Carl Wolf said 4Q was highlighted by record revenues and the acquisition of premier gourmet food manufacturers T&L Creative Salads Inc and Olive Branch LLC, which he said was expected to generate at least $35 million in sales in 2022 in addition to the company’s core revenue base.
“The acquisition significantly expanded our existing business in the rapidly growing fresh prepared foods segment, where we believe we can achieve a substantial increase in sales and earnings before interest, taxes, depreciation, and amortization by leveraging established national distribution partnerships,” Wolf said in a statement.
“Integration of the acquisition has proceeded rapidly, bringing with it over 3,000 new locations for the combined company and over 10,000 spots on retailer shelves.”
Wolf said the company expects it will generate at least $30 million in sales in 1Q of fiscal 2023 and that it would approach a $100 million annual sales run-rate over the next year.
“Looking ahead to continue this momentum, we continue to see attractive multiples in the food product space and will evaluate additional acquisition opportunities that are immediately accretive,” he said.
The company posted a net loss for 4Q of $1.3 million or $0.04 per diluted share, compared to a net income of $1.7 million or $0.05 per diluted share for the same quarter in 2021.
The decrease in net income was attributed to a lower gross margin, higher freight and shipping expenses, acquisition-related expenses, as well as increases in marketing accruals, and a tax expense of $0.3 million compared to a tax benefit of $0.7 in the prior period.
MamaMancini’s is a marketer and distributor of specialty prepared, refrigerated, and frozen all-natural Italian foods.
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