USA: Tasty Baking Co sees slight drop in Q1 gross sales
Philadelphia-based Tasty Baking Company, one of the largest independent baking companies in the US, has announced that for its Q1 ended 30 March 2002, gross sales fell to US$64m, from US$65.7m year on year.
Gross sales, less discounts and allowances, resulted in net sales of US$40.7m, compared with US$42.2m reported for the same period last year. Net income for the thirteen weeks was US$1,205,000 or US$0.15 per diluted share compared to US$2,119,000 or US$0.26 per diluted share, during the comparable period in 2001.
Carl S. Watts, chairman and CEO, commented: "Our Q1 results were a reflection of a continuing difficult marketplace. Although sales at the beginning of the quarter were on budget, our attempts to better manage our pricing and promotional costs, especially in our route territories, were met with heavy consumer resistance.
"In addition, unprecedented promotional activity by all competitors in the snack food category had a negative impact on sales. As a result, our route territories experienced an 8% sales decrease. National sales increased almost 17% driven by continued positive results with our mass merchandisers."
Watts continued: "In the Q2, we have already adjusted our pricing and promotional activities, in our route territories, to meet the increased level of competition. Our business with mass merchandisers continues to grow and our efforts to sell products to new channels of distribution continues on target in the national sales area. We believe our approach and long-term strategy will help us grow our business, not only in the route areas, but also in other alternative methods of distribution.''
Watts continued: "Although our sales results were disappointing, we continued our efforts to control costs and Q1 costs were within budgeted levels."
Watts concluded: "We remain cautiously optimistic and we feel confident the adjustments to our business plan will see positive results in the Q2."
Food, Japan is now realising, is a great way to gain goodwill. Cars, hi-fis, toys and gee-whiz technology may have helped create the world's second largest economy in the way of exports but now the co...
US doughnut maker and retailer Krispy Kreme has provided further details on the bankruptcy of its Philadelphia franchisee Freedom Rings....
US doughnut maker and retailer Krispy Kreme has announced that Freedom Rings, its majority-owned subsidiary and franchisee partner in the Philadelphia region, has filed a voluntary petition for Chapte...
US regional supermarket chain Pathmark Stores has reported a net loss of US$5.1m, or 12 cents per share, for the second quarter to 30 July, compared to a net loss of $1.6m, or 5 cents per share, in th...
Scientists in the US say they have discovered one reason why olive oil appears to be beneficial to heart health - it contains a natural anti-inflammatory....
Kraft Foods has announced the launch of Philadelphia Splendips snacks, which, it says, have been developed to provide consumers with a tasty all-in-one dipping snack that's just a little bit more virt...
Natural and organic food retailer Whole Foods Market has announced the start in September of "Whole Baby," an informative program for expectant mothers....
Pasta maker American Italian Pasta Company has announced that it is delaying the release of its full financial results for the third fiscal quarter ended 1 July 2005, while it carries out an internal ...
- Danone's Q1: four things to learn
- Who will buy Danone's Stonyfield business?
- Column: Why snacking is the new meal
- Interview: Sir Kensington's on sale to Unilever
- Nestle Q1 update: four things to learn
- Tyson shops Sara Lee bakery, Kettle and Van's
- Nestle to cut UK confectionery jobs
- PepsiCo affirms full-year target as Q1 hits mark
- Icelandic to sell Saucy Fish Co. owner Seachill
- Tyson to buy burger-to-entree firm AdvancePierre