US premium baker Tootie Pie saw an improvement in first-quarter earnings on Friday (14 August), despite a 13% drop in sales.
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For the three months to 30 June, net losses dropped to US$140,150, compared to $230,944 – a 39% improvement.
The company reported revenues of $258,336 for the quarter, a drop from $298,223 in the comparable quarter of 2008. The decrease is primarily due to current US economic conditions.
Don Merrill, Tootie Pie Company’s president & CEO, said: “All things considered, I am pleased that our sales were fairly flat to last year. Sales this time of year come almost entirely from our existing wholesale customers and we all know that the restaurant business has taken some major hits over the last several months.”
General and administrative expenses dropped 24%, to $128,854 for the current quarter, down from $169,942 for the same quarter in 2008.
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By GlobalDataTootie Pie said the drop in overall sales and general administrative expenses was a direct result of cost cutting measures enacted by the company beginning in early 2009.
“We said we would make the hard choices necessary to weather this economic storm and reducing overhead, thereby preserving cash, is one of the most important things we could do right now. I believe our results show that the decisions we made are having a very positive impact on our overall operating results, thereby keeping the company positioned for further success as the upcoming selling season approaches,” said Merrill.
