The Topps Company, maker of confectionery and entertainment products, has posted higher second-quarter net income, although it said profitability was hit by higher marketing costs.
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The company reported net income of US$4.8m, or 12 cents per share, for the second quarter to 27 August, compared to $3.7m, or 9 cents per share, in the year-ago period. Topps said net income in the recent period benefited from a one-time, non-cash reversal of income tax reserves which added approximately $1.6m. Profitability for the period was impacted by higher marketing-related expenses.
Net sales in the fiscal 2006 second quarter increased 9.4% to $75.3m from $68.8m last year. Confectionery net sales increased 5.7% to $42.2m, mainly due to an improved performance of domestic confectionery products, helped by increased advertising. Strong sales of Ring Pop, Push Pop, and Baby Bottle Pop, broadened distribution of Juicy Drop Pop, and the rollout in Japan and Latin America of Mega Mouth Spray all contributed to the quarter’s results.
