Tasty Baking said today (31 October) that it had swung into the red during the third quarter due to higher ingredients prices and costs linked to the move to a new manufacturing site.
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The US firm booked a third-quarter net loss of US$1.4m for the three months to 27 September. A year earlier, Tasty Baking posted a profit of $210,000.
The results included post-tax charges of $1m in severance costs related to the company’s planned move from Hunting Park Avenue in Philadelphia to the Philadelphia Navy Yard, about 12 miles away.
The results also included $800,000 in post-tax depreciation expenses related to the move. Last year, the company’s results included a charge of $900,000, also related to the move.
Tasty Baking also absorbed $2.3m in higher ingredients and packaging costs.
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By GlobalDataDuring the quarter, sales rose marginally from $42.5m last year to $42.8m.
President and CEO Charles Pizzi said he was “pleased” with the company’s “overall performance”.
He added: “Route net sales had positive growth and our continued focus on cost containment and improved operating efficiency has yielded favourable results.”
Tasty Baking produces products under the name Tastykake.
