Dairy-free food maker Tofutti Brands reported a 4% decrease in net sales and a decline in profitability for 2015.

The company said the drop was primarily due to “sluggishness” in the ice cream sector. 

Sales for the 12 months to 2 January totalled US$13.8m, down from $14.4m in the prior year. 

“The decrease in sales was primarily due to the decrease in frozen dessert sales, which was offset in part by increased sales of frozen food entrée products, primarily sales of our Pizza Pizzaz product. The company’s frozen dessert business continues to be negatively impacted by the overall sluggishness of sales in the ice cream category,” Tofutti said. 

The group revealed sales of its soy cheese line were also lower year-on-year as the firm increased its promotional activity. 

The company’s gross profit in the year decreased by $652,000 to $3.6m and the gross profit margin fell to 26% from 30% the year before. Tofutti said the drop was due to a higher sales allowance in the period. 

The company booked net loss of $643,000 ($0.12 per share) compared to a net loss of $163,000 ($0.03 per share) in fiscal 2014.

David Mintz, chairman and CEO, said over the coming 12 months the firm would focus on innovation to reinvigorate sales. “During fiscal year 2016 we intend to introduce several new frozen dessert products and soy-cheese products. The introduction of these new products and the realisation of price increases that were instituted in 2015 are expected to improve our profitability margins in 2016.”