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Investor Day Presentation February 12, 2025NASDAQ: MAMA
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NASDAQ: MAMA | 2 Forward Looking Statements This presentation may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future,” "plan" or "planned,” "will" or "should,” "expected,” "anticipates,” "draft,” "eventually" or "projected.” You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company’s 10- K for the fiscal year ended January 31, 2024 and other filings made by the Company with the Securities and Exchange Commission.
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NASDAQ: MAMA | 3 Introducing our First Speaker Adam L. Michaels Chairman & Chief Executive Officer Investing in our Future
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NASDAQ: MAMA | 4 Intro & Joining Us Today Today’s Agenda • Our 2030 Vision & 4 C Strategy • Sales & Commercial Expansion • Marketing Objectives & Programming • Scaling Production & Ongoing Margin Expansion • Trimming & Tumbling Deep Dive • Go-Forward Financial Impact • Growing MAMA’s Family with M&A • How to Measure Success in FY2026 • Question & Answer Session Team Adam Michaels Chairman & Chief Executive Officer Chris Darling Chief Commercial Officer Lauren Sella Chief Marketing Officer Skip Tappan Chief Operating Officer Anthony Gruber Chief Financial Officer
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NASDAQ: MAMA | 5 The Road So Far Brand Strength •Market share gains •Cross selling •Incremental products •Brand strength drove meaningful new wins (i.e. Walmart & Costco) Financial Strength •17.2% TTM rev. growth •High-20% gross margin (excl. construction) •Cash grew 166% T24M •Paid down $7.6M of debt T24M New Capabilities •NetSuite insights live •World-class team •Strategic CapEx •First-ever “true” trade & marketing initiatives M&A Initiatives •Integrated T&L Creative Salads •Acquired Chef Inspirational Foods •Evaluating deal pipeline First Two Years Spent Building the Foundation for Sustainable Execution
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NASDAQ: MAMA | 6 Macro Trends: The Rise of Fresh Food • Consumers are increasingly time and budget constrained, with grocery deli sections expanding to become shoppers’ meal of choice • Cost of food away from home at restaurants is rising faster than overall inflation, pushing consumers toward deli fresh alternatives LTM Ended 12/31/24 Consumer Price Index Inflation1 - Food at home inflation: 1.8% - Food away from home: 3.6% - All inflation: 2.9% • Grocers are capitalizing on the opportunity by investing heavily in attractive deli displays, but need prepared food options that maximize their limited labor force Mama’s Creations is at the intersection of this trend: - Offering affordable restaurant GRANDMA-quality food - Drives incremental trips & larger baskets for grocers with minimal on-site preparation required 1) U.S. Bureau of Labor Statistics Grocers investing in grab-n-go food offerings are emerging as a quick service restaurant alternative
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NASDAQ: MAMA | 7 Goal to Become First of Kind, $1B One Stop Shop Deli Solution Our 2030 Vision & 4 C Strategy • Achieve mid-30s GM through operational efficiency/ moving earlier in the Value Chain • Develop redundancy & load sharing operations across facilities • Install & stand up our CAPEX agenda efficiently & effectively Our 4C Strategy CATAPULTCOST CONTROLS CULTURE Three-Year Strategic Goals • Achieve high single digit net income through scale efficiencies & margin mgmt • Be prepared and organized for future acquisitions with a repeatable Integration Playbook • Leverage our NetSuite Implementation – What Gets Measured, Gets Improved • Hire, build and become a world class team • Instill a “Grandma Quality” Culture, in our products and Safety in our Operations • Insource critical functions • Grow ACV, entering “Big 3” accounts (WMT, TGT, KRO) • Drive AIC by cross- selling & focusing on our must stock list • Build an ROI+ trade & mktg plan to accelerate velocities • Acquire $250M of revenue 1 2 3 4
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NASDAQ: MAMA | 8 Introducing our Next Speaker Driving New Customer Wins Chris Darling Chief Commercial Officer
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NASDAQ: MAMA | 9 Strong Customer Relationships >10 Customers with $2M+ in Annual Sales in FY2025 New Customers in FY2025 We are Still Not in Half of the Top 10 Retailers! North Cal Texas SouthEast (Exiting FY25 Run Rate)>$5MM • Success @ Sam’s Led to Inbound ask from WalMart • Requested multiple global flavors of our nationally recognized grilled chicken • Aligned on one flavor to start in two pack types (2ct & 4ct) • Sensible initial roll-out at 2,000 stores, with a one- year commitment • Review velocity metrics monthly with cross- functional team • 4ct item has outperformed expectations by 2x • Increased 4ct Store Count 25% since initial authorization
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NASDAQ: MAMA | 10 Strong Entry into C-Channel • C-Channel Sales Expert • Brand Reputation Led to Meeting • Assortment and Quality Aligned with Sheetz Food Strategy • Won 3 SKUs into 542 Stores with Shipments Beginning this Month
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NASDAQ: MAMA | 11 Strategic Sales Initiatives Sustainable Double Digit Revenue Growth Expand Average Items Per Existing Customer Major Account Acquisition & Balance Channel Mix Increasing YoY revenues by double digit percentage in a sustainable, profitable and purposeful manner Two item increase in same account AIC with a focus on opportunistic selling of line extensions through existing and new items Strategic entry into Target and Kroger as well as expansion in C Store channel Product Assortment Set & Achieve Strategic Product Mix Targets Establish product development cadence and process focused on expanded branded offerings and increasing branded market penetration Targets balance of chicken portion demand with product development and sell-in that utilizes trim output
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NASDAQ: MAMA | 12 Trade Promotion Initiatives Trade Example: BJs Wide Arsenal of In-Store & Online Tools Goal to double trade promotion investments in FY26 • Key Initiatives • New Item Launch • Customer Retention
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NASDAQ: MAMA | 13 Introducing our Next Speaker Investing in Rocket Fuel for Growth Lauren Sella Chief Marketing Officer
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NASDAQ: MAMA | 14 Marketing Objectives & Priorities Stick in their Mind (Awareness) Get in their Cart (Action) Win their Heart (Advocacy) Develop brand awareness among target consumer, connecting to retail where applicable Increase brand familiarity at and around top retail customers Create stronger brand loyalty Measure all marketing activations and brand lift Why Grow Our Marketing Investment and How is Success Measured?
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NASDAQ: MAMA | 15 The Perfect Product Launch The Flywheel of Strategic Marketing and Trade Promotion In Store Circulars POS In Store Displays Sampling Consumer Living Life Influencer Partnerships Digital/Social Ads Earned Media Product Placement Consumer in Shopping Mindset Retail content & search Instacart campaign Retailer Consideration Trade Shows Awards Trade Ads Selling Tools Post Purchase On Pack QR Code Email Marketing Stick in their Mind (Awareness) Get in their Cart (Action) Win their Heart (Advocacy)
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NASDAQ: MAMA | 16 Marketing Wins Launched Consumer Activations Activated Trade Marketing Strategy Created branded campaigns to support key retail initiatives (Costco & Publix), generated 500mm+ PR impressions, activated Meatball Day sweepstakes, growing CRM to 12k. Established trade show presence, generating 250+ leads and $1-2mm in gross revenue in new business in FY25 & won 3 prestigious trade innovation awards. Implemented New Product Development Process Expanded Retail Media And launched / prepared 15+ new items (customer-specific and national), including Mama’s Creations brand. Added 5 new retailers, expanded Instacart support by 2x, delivered $750K in retail sales with ROAS of just under $5.
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NASDAQ: MAMA | 17 Introducing our Next Speaker Scaling Production & Ongoing Margin Expansion Skip Tappan Chief Operating Officer
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NASDAQ: MAMA | 18 3 P’s of Operations & Supply Chain Excellence Plant Process People • East Rutherford facility build-out and technology investments • Farmingdale throughput improvement and debottlenecking • Disciplined CapEx planning and project management • Sales / Demand / Supply Planning excellence – S&OP / IBP • Smarter forecasting / KPI management / root cause corrective action • Engineered standards development • Centralize roles and functional ownership (Procurement, Food Safety & QA / QC, Planning, Customer Service, Logistics) • Talent development and succession planning • Improved people & process capabilities Operating Strategy & Principles • Safety and quality are TOP priority • Robust Sales, Demand, and Supply integration (S&OP / IBP) • Math and science-based forecasting • Disciplined Performance / KPI mgmt. • Org design supports and enables operating strategy • Centralize / Center Led • Talent assessment, bench strength, leadership development training Defined Path to Sustainable and Robust Gross Margins
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NASDAQ: MAMA | 19 Achieving Best-in-Class Facilities Farmingdale, NY • Completion of summer 2024 construction doubles grilled chicken capacity and increases usable space by 10,000 sq. ft. • First ever chicken contracts at attractive rates to provide greater visibility into future input pricing and reduces margin fluctuations • Targeting to trim and tumble half of chicken production in-house by end of Q2 • Improving people and process capabilities (ex: staffing model to maximize throughput while minimizing overtime) • Utilizing new demand vs. supply modeling tool to maximize grill throughput and customer delivery • Disciplined performance management – KPI based, “balanced” scorecard East Rutherford, NJ • Lesson learned: Strategic investments in automation to start, stay, end on track via world class project mgmt. governance while minimizing operations impact: – Facility build-out – MAP technology • Expanding existing 24K sq. ft. facility into adjacent space of our building to grow usable space by ~50% (+19,000 sq. ft.) with no expected impact on existing operations • Executing full network analysis to optimize plant assets and customer sourcing / delivery. Expansion space, plus existing ER facility, will be optimized to enable overall network cost and service – Slicing and dicing – Pallet Wrapping – Smart belt – X-Ray – Corporate Reliability – Opportunistic Buying +19,000 sq. ft.
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NASDAQ: MAMA | 20 Trimming & Tumbling Deep Dive Each Additional Day Per Week we Trim Chicken Could Increase Chicken Gross Margins by up to 1pt Which Significantly Increases Gross Margin Increases Ability to Trim Selling More Trim Products Why is Trimming & Tumbling so Critical? • We currently trim approx. one day per week due to a product mix weighted towards portioned chicken, which reduces need for ‘random weight/ random shaped’ chicken • For all chicken we don’t trim ourselves, we pay a third party >$1/lb to trim it for us, representing a notable margin impact • Introducing new products to push sales mix more towards non- portioned chicken; Recent launch of “Artisan Cut” branding • Ground Chicken: Chicken Meatballs @ Costco • Chicken ‘Bottoms’: Chicken Strips @ Albertsons • Chicken Pieces: Meals for One @ multiple customers • As the sales mix shifts, we are targeting half of our chicken needs being trimmed in-house by end of Q2 • By tumbling ourselves, we (1) reduce our price per pound and (2) increase our grill yield
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NASDAQ: MAMA | 21 Introducing our Next Speaker Anthony Gruber Chief Financial Officer Go-Forward Financial Impact
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NASDAQ: MAMA | 22 Fiscal 2026 Goals • Double digit revenue growth, always growing share, the extent to which depends on macro-trends • Planning for ~100% increase in trade promotion (assuming at high-20% gross margin in-line with goals); long-term target of up to 10% of sales • At least high 20% near term, improving throughout the year • Growing marketing spend by ~100% (assuming margin goals met) • Additional $0.5M in Insurance and PubCo related expenses (i.e. SOX) • Targeting OpEx (excl. Marketing) at ~20% of revenue • Steady paydown of any remaining market-rate debt outstanding • Net income expected to progress from low to high end of mid-single digit percent of sales throughout the year, growing to ~10% over the long term • Adjusted EBITDA expected to progressively grow throughout the year from high-single digit percent of sales to double digits exiting the year Walking through the Income Statement Sales-net of slotting fees and discounts Costs of sales Gross profit Operating expenses: Research and development General and administrative Total operating expenses Income from operations Other income (expenses) Interest Amortization of debt discount Other income Total other income (expenses) Net income Adjusted EBITDA Financial Targets for FY 2026
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NASDAQ: MAMA | 23 Closing Remarks Adam L. Michaels Chairman & Chief Executive Officer Growing MAMA’s Family with M&A
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NASDAQ: MAMA | 24 Balancing Organic & Inorganic Growth Vision of Mama’s Creations as a National Deli Solutions Company • Serving the full demands of deli & fresh departments via our suite of brands as a “One Stop Shop” Seeking Accretive Acquisitions • Approximately $33-77M in revenue at attractive multiples with complementary capabilities • Goal of aggressive synergy realization and rapid integration of acquisitions leveraging existing distribution network to accelerate growth trajectory We are Ideally Looking for Three Things in an Acquisition: 1. In the deli (ideally with an incremental product or customer) 2. With existing manufacturing and/or distribution facilities 3. In the Western U.S. (we have sufficient physical East Coast presence) Active search program underway for accretive acquisitions
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NASDAQ: MAMA | 25 How to Measure Success in FY2026 1) You are going to measure us on how well we can grow our business profitably and consistently! 2) Are we investing for the future via strategic marketing & high ROI trade promotion? 3) Top line growth will be driven by an increase in Average Items Carried (AIC), velocity and new customers 4) Gross margin will be driven by an increase in operational efficiency, trimming through a more desirable sales mix and prudent commodity cost management 5) Adj. EBITDA growth will be driven by increased fixed cost absorption and high ROI capital investments 6) Measurable progress in our M&A initiatives
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Question & Answer Session Investor Relations Lucas A. Zimmerman MZ North America Main: (949) 259-4987 MAMA@mzgroup.us Mama’s Creations Inc. (NASDAQ: MAMA) 25 Branca Road, East Rutherford, NJ 07073 www.mamascreations.com