US: Mixed bag from Tasty Baking in Q3

By: just-food.com | 2 November 2007

US bakery group Tasty Baking Co. has posted a set of mixed results for the third quarter of the year.

The Philadelphia-based firm booked rising sales and gross profits for the three months to 29 September.

However, the pies-to-cookies maker saw margins and net income fall due to the depreciation in the company's assets as it plans to move to a newly constructed bakery and a "green" corporate headquarters.

Gross profits were up almost 25% to $3.6m, Tasty Baking said. Sales rose 2.9% to $42.5m.

"During the third quarter we delivered healthy net sales and EBITDA growth in the face of significant commodity cost pressures," said president and CEO Charles Pizzi.

Margins fell from 33.1% of net sales in the third quarter of 2006 to 28.7% this year. Tasty Baking pointed to the costs of asset depreciation and a rising raw material bill.

Net income fell by 58.5% to $200,000 on the back of the asset depreciation.

Sectors: Bakery, Snacks

Companies: Tasty Baking Co.