US bakery group Tasty Baking Co. has posted a set of mixed results for the third quarter of the year.
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The Philadelphia-based firm booked rising sales and gross profits for the three months to 29 September.
However, the pies-to-cookies maker saw margins and net income fall due to the depreciation in the company’s assets as it plans to move to a newly constructed bakery and a “green” corporate headquarters.
Gross profits were up almost 25% to $3.6m, Tasty Baking said. Sales rose 2.9% to $42.5m.
“During the third quarter we delivered healthy net sales and EBITDA growth in the face of significant commodity cost pressures,” said president and CEO Charles Pizzi.
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By GlobalDataMargins fell from 33.1% of net sales in the third quarter of 2006 to 28.7% this year. Tasty Baking pointed to the costs of asset depreciation and a rising raw material bill.
Net income fell by 58.5% to $200,000 on the back of the asset depreciation.
