US-based soy food producer Tofutti Brands has posted a drop in net income for the first two quarters of the year, hurt by a product recall in May.

Net income for the 26 weeks to 27 June dropped to US$250,000 from $331,000 in the comparable period of 2008.

The company recalled 12 pallets of its eight pack Vanilla Cuties mini sandwich frozen dessert novelties in May due to possible trace level milk contamination.

Net sales for the period dropped 9% to $9.4m. The figure was negatively impacted by the elimination of certain products sold in the 2008 period and the continuing effects of the deteriorating economy.

The company's pre-tax profit also dropped slightly to $417,000 from $550,000 in the comparable period of 2008.

David Mintz, chairman and CEO said: "We do not believe the recall affected our net sales, and based on an uptick in sales that we experienced in June, we look forward to continued improvements in our sales and operating income during the remainder of the year."