Tofutti reported higher sales and reduced losses in third quarter

Tofutti reported higher sales and reduced losses in third quarter

Tofutti Brands has reported an increase in losses for the first nine months of the year.

The US dairy-free firm posted a net loss of US$526,000 for the period ending 3 October, compared with $248,000 a year earlier. Losses before income tax also increased to $518,000 from $242,000.

Tofutti reported a drop in gross profit and gross margins due to a "substantial increase" in promotional sales allowances.

Nine-month sales fell to $10.4m from $10.6m in the corresponding period a year earlier. Tofutti said the lower sales was due to a decline in sales in the first quarter of the year.

It reported a 12% rise in sales in the third quarter, when its net sales hit $3.7m. 

Tofutti saw its bottom line improve in the third quarter, reporting a net loss of $126,000, down from $164,000 a year earlier.

David Mintz, chairman and CEO said: "While we recorded a small loss for the quarter, our principal product lines continued to show consumer acceptance. Sales of soy-cheese products increased by 18% and frozen desserts sales increased by approximately 8% as compared to the comparable period in 2014. We have reduced expenses while focusing on expanding sales of our non-dairy cheese products and frozen dessert and food products. Price increases instituted earlier in 2015 should provide improved gross margins during the remainder of the year."