Tofutti has posted a profit for Q1

Tofutti has posted a profit for Q1

Shares in Tofutti Brands closed up over 5% after the US dairy-free group reported a profit for the first quarter of 2014.

For the period ended 29 March, the firm posted a net income of US$106,000, compared with a loss of $268,000 for the same period last year.

Operating income was also up to US$112,000 versus an operating loss of US$262,000 last year. Sales increased 12% to US3.9m.

Chairman and CEO David Mintz said the results were reflective of efforts to "improve our sales and to cut our expenses."

"We believe that our sales will continue to improve during the remainder of fiscal 2014 due to the introduction of new products and price increases instituted in the first and second quarters of this year. We continue to be optimistic about introducing a new frozen dessert pint line and stick novelty during the second quarter of 2014 and the planned introduction of several new dairy-free cheese products and frozen food entree products throughout the balance of 2014," he added.

Shares finished up 5.25% at $4.55.

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Tofutti Announces First Quarter Results

Revenues increase 12% year over year

 

Net income of $106,000 compared to a net loss of $268,000

 

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CRANFORD, N.J., May 13, 2014 /PRNewswire/ --  TOFUTTI BRANDS INC. (NYSE MKT Symbol: TOF) today announced its results for the thirteen week period ended March 29, 2014.

The Company reported net sales for the thirteen weeks ended March 29, 2014 of approximately $3.9 million compared with net sales of approximately $3.4 million for the thirteen weeks ended March 30, 2013, an increase of 12%. 

For the thirteen weeks ended March 29, 2014, the Company reported income before income taxes of $112,000 as compared with a loss of $262,000 before income taxes for the comparable 2013 period.  The Company also reported that its gross profit increased to $1,290,000 in the period ended March 29, 2014 from $1,004,000 in the period ended March 30, 2013 due primarily to the higher sales level.  The Company's gross profit percentage increased to 33% for the period ending March 29, 2014 compared to 29% for the period ending March 30, 2013.  The increase in the Company's gross profit percentage was due primarily to price increases in certain product and customer categories during the first quarter of 2014, eliminating certain promotional allowance programs that were in place during the 2013 thirteen week period and lower freight out costs for the first quarter of 2014 compared to the first quarter of 2013.   

The Company had net income for the thirteen weeks ended March 29, 2014 of $106,000, or $0.02 per share, compared to a net loss of $268,000, or $0.05 per share, for the thirteen week period ended March 30, 2013.  As of March 29, 2014, the Company  had  approximately $185,000 in cash and cash equivalents and its working capital was approximately $2.8 million, compared with approximately $214,000 in cash and cash equivalents and working capital of $2.7 million at December 28, 2013.

Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, "Our improved financial results for the first quarter of 2014 reflect our efforts to improve our sales and to cut our expenses. We believe that our sales will continue to improve during the remainder of fiscal 2014 due to the introduction of new products and price increases instituted in the first and second quarters of this year.  We continue to be optimistic about introducing a new frozen dessert pint line and stick novelty during the second quarter of 2014 and the planned introduction of several new dairy-free cheese products and frozen food entree products throughout the balance of 2014." 

Original source: Tofutti Brands