US meatball maker MamaMancini’s today (13 June) reported a “very strong start” to its financial year, with sales up over a fifth and losses narrowing.
The company booked revenue of US$3.9m for the period to the end of April, up 21% on the corresponding period a year earlier.
The business booked a loss from operations of $55,220 and a net loss of $226,107 but said the results compared to $852,647 and $1.1m in the previous financial year’s first quarter.
CEO Carl Wolf said: “We are off to a very strong start in fiscal year 2017. Revenue for the quarter increased 21% as product deliveries commenced to many of the new retail store chain customers developed in the latter part of fiscal 2016 and in the just-completed first quarter. Our strategy of developing larger customers and exiting underperforming accounts that do not generate reasonable returns has achieved measurable results.”
Wolf said MamaMancini’s had “strategically exited” around a quarter of its accounts in the previous financial year, which had led its gross margin to rise from 26% to 38%.
“Although our products appeared in 10% fewer stores and on 7% fewer shelves than last year at the end of the first quarter, we generated significantly more revenue and dramatically expanded our gross margin,” Wolf said. “Looking ahead to second quarter 2017, we expect revenue to grow by approximately 50% compared to the first quarter of fiscal 2016 as we continue to add new customers, exit accounts that do not generate reasonable margins and manage our business more efficiently.”