US non-dairy desert maker Tofutti Brands Inc has announced a rise in sales and net income for the first quarter ended 2 April 2005, despite the impact of rising costs.

Net sales increased to $4.2m compared with net sales of $4.0m for the equivalent period a year earlier.

Net income for the thirteen weeks ended April 2, 2005 increased to $76,000 compared to $54,000 for the year earlier period.

The company's operating results continued to be negatively impacted as a result of new product start-up costs, including costs incurred at new co-packaging locations, increased marketing expenses and higher packaging and freight charges, it said. The company expects that during the remainder of 2005 its operating expenses will continue to be affected by these same factors.

"We continue to see increasing demand for our TOFUTTI brand soy-based, dairy-free frozen desserts and food products," said David Mintz, chairman and CEO. "Our Tofutti Cuties continue to be one of the nation's best selling novelty desserts and our new products are beginning to achieve market traction. We are continuing our efforts to improve our margins in the upcoming periods and look forward to improving margins and increased market penetration during the approaching summer months."