US-based soy food producer Tofutti Brands has posted a drop in full-year profits, hurt by “significant” price increases to certain key ingredients and packaging materials.
For the year ended 27 December, the company recorded net income of US$217,000 compared to $465,000 for fiscal 2007.
The company’s pre-tax profit also declined, dropping to $435,000 from $799,000 in the previous year.
Despite this, net sales increased 2% to reach $19.6m, an increase of $459,000.
“While we succeeded to a limited degree in increasing our sales in fiscal 2008, our efforts were negated in great measure by the general economic decline in the US,” said David Mintz, CEO and chairman.
“We believe that we have solved the production issues that we encountered in fiscal 2007 and are now actively attempting to reduce our expenses to improve our gross profit margin.”
