Tofutti has posted a loss for the first nine months of the year

Tofutti has posted a loss for the first nine months of the year

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.

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."

Show the press release

CRANFORD, N.J., Nov. 12, 2014 /PRNewswire/ -- TOFUTTI BRANDS INC. (NYSE MKT Symbol: TOF) today announced its results for the thirteen and thirty-nine week periods ended September 27, 2014.

Tofutti Brands reported net sales for the thirteen weeks ended September 27, 2014 of $3,292,000, a decrease of $150,000, or 4%, compared to net sales of $3,442,000 for the thirteen weeks ended September 28, 2013. The decrease was mainly the result of a decrease in  frozen food product sales, primarily frozen desserts.  Net sales for the thirty-nine week period ended September 27, 2014 were $10,647,000, a decrease of $496,000, or 4%, compared to net sales of $11,143,000 for the thirty-nine week period ended September 28, 2013.  The decrease in sales was primarily from decreases in sales in the second and third quarters mainly in the company's frozen dessert and frozen food categories.  In addition, in the thirteen and thirty-nine week periods in 2014 the company increased promotional and allowance activity by over $100,000 and $192,000, respectively, which negatively affected reported sales.           

The company's gross profit and gross profit percentage for the thirteen week period ending September 27, 2014 were approximately $841,000 and 26%, respectively, compared to $1,037,000 and 30%, respectively, for the period ending September 28, 2013. The company's gross profit and gross profit percentage for the thirty-nine week period ending September 27, 2014 were $3,092,000 and 29%, respectively, compared to $3,530,000 and 32%, respectively, for the period ending September 28, 2013.  The decrease in the company's gross profit percentage was due primarily to the decrease in sales and a substantial increase in the company's promotional allowance programs in the thirteen and thirty-nine weeks ended September 27, 2014.

For the thirteen week period ended September 27, 2014, the company reported a net loss of $164,000, or $0.03 per share, compared to a net loss of $149,000, or $0.03 per share for the thirteen week period ended September 28, 2013.  The company's net loss for the thirty-nine weeks ended September 27, 2014 was $248,000, or $0.05 per share, compared to a net loss of $236,000, or $0.05 per share, for the thirty-nine weeks ended September 28, 2013.

As of September 27, 2014, the company had approximately $64,000 in cash and cash equivalents and its working capital was approximately $2.4 million, compared with approximately $214,000 in cash and cash equivalents and working capital of $2.7 million at December 28, 2013.   

Mr. David Mintz, Chairman and Chief Executive Officer of the company stated, "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."

Original source: Tofutti Brands