Weakness in frozen food sales has led to Tofutti Brands posting a loss of US$248,000 for the first nine months of the year.
For the nine months ended 27 September, Tofutti reported a greater loss compared with the same period last year, where it posted a loss of $236,000. Operating income was also lower at $3.3m compared with $3.7m. Sales were 4% down to US$10.6m.
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Tofutti said “the decrease was mainly the result of a decrease in frozen food product sales, primarily frozen desserts”.
The company also pointed to increased promotional and allowance measures, which had an impact on sales.
For the third quarter, the firm reported a net loss of $164,000 compared with a loss of $149,000 against the same quarter last year. Operating income was lower at US$1.1m compared with US$1.1m. Sales also fell 4% to US$3.3m.
David Mintz, chairman and CEO of Tofutti, said: “Our results for the third quarter of 2014 reflect the continuing weakness in frozen food product sales. We are focused on reducing expenses while expanding the markets for our frozen food and non-dairy cheese products. Price increases instituted earlier in 2014 should provide improved gross margins during the remainder of the year.”
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By GlobalData
