A dip in fourth-quarter revenue weighed on annual sales at Tasty Baking Co., the regional US baker.

The company said today (28 February) that its net sales fell 4% during the last three months of 2007. Full-year turnover inched up 1.3% to $169.9m.

Rising input costs and a fall in "non-route" net sales hit fourth-quarter revenue. Margins fell over 8% thanks to the rising cost of commodities including eggs and grain.

CFO David Marberger said: "The story for the last quarter has been the negative impact of commodity inflation in the areas of eggs, grains, and oils. The market prices for certain of these commodities have increased more than 50% since the end of the second quarter 2007 and are affecting many companies in the baking industry."

Tasty Baking's profits were hit by its planned move to a new corporate HQ. The Philadelphia-based firm is moving to a newly constructed bakery and a "green" corporate headquarters and depreciation costs on assets at its current bakery weighed on earnings.

Net income for 2007 was down 49.3% to $2.1m. The company said, however, that underlying earnings rose 7.7% to $13.7m.