MamaMancini’s Holdings, Inc. (NASDAQ:MMMB) Q3 2023 Earnings Call Transcript

Adam Michaels: Yes. So I’ve come in three months in, so I’m not going to tell you what I thought a month ago, a year ago, but what I think we’re seeing is that we’re being responsive. So you brought up a great point. So we historically or in the past have been selling these kits, which make it — allows the customers’ labor to be doing some of the work. As the labor got tighter, we are actually responsive and we created our Meals for One program, which allows them really no labor on the customer side. So what I think is really special about our sales team, we’re good listeners, understanding different customers want different things. And the beauty is we’re able to provide those things, the needs of the customer. So I think the word is agility to our sales force and equally important to our operational team.

So it’s the balance, and Matt and I have these conversations all the time around how do you balance agility and meeting the needs of our customers with managing complexity, right? In a perfect world, we’d sell 2.4 ounce meatballs or grilled chicken 24 hours a day, that would be the best from an operational standpoint. But obviously, we don’t want to do that. We want to meet the needs of our customers. So it’s that balance between meeting the needs of our customers with the efficiency that we’re trying to get from an operational standpoint.

Howard Halpern: Okay. And from just the overall — the G&A expense, are you happy with where that is and it might just increase incrementally as you are able to leverage up well past that $100 million mark?

Adam Michaels: Yes. I think the word that we all love around the office is absorption. So as we’re growing more and more top line revenue, that’s allowing us to do one of two things. It allows us to drive down our SG&A or G&A a little bit. But then equally, it allows us to build capabilities. I am extraordinarily passionate about building capabilities within the organization. I’ve been here three months. You already see that with Anthony, our new CFO, who is doing an amazing job. I mentioned today, we just hired a Controller. So the goal that we have as a leadership team is to drive top line revenue, that’s going to allow us to invest additional capabilities in the G&A level without seeing it actually go up on a percentage basis.

Howard Halpern: Okay. And one last one. How have some of I guess the initial tests gone with the Meatballs in a Cup for convenience stores and other customers?

Adam Michaels: Yes, it’s going well. So it’s actually wonderful. So we’ve mentioned in the past that we had a couple of tests going. We actually got another test of a major grocer that’s in place. We actually just got another actually full authorization, it’s not even a test rollout to another major grocer. So we’re seeing that which is wonderful. But equally, I think it’s important, we’re doing it very intentionally with the right cadence, because we’re learning a lot. So what we’ve been able to do is we’ve been getting feedback from both customers and consumers. One of the things that we heard back is that we wanted a longer shelf life. And we were able to actually do that, because we didn’t just go all the way out full bore, we were able to identify those pieces of feedback and we’ve actually already addressed it and have a solution for it.

So now we’re able to go out with a much longer shelf life, customers are really loving that. So what I’d say is, like where we are. I do believe it’s something that’s going to be big for 2023. But we’re going to do it very intentionally such that we roll it out, and we have the right product for our consumers.

Howard Halpern: Okay. Well, thanks. Keep having the team and you keep up the great work. And I’ll hop back in.

Adam Michaels: Thanks so much, Howard.