Philadelphia-based bakery group Tasty Baking Company has reported a 3% drop in sales for the second quarter to US$42.6m.
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However, net income rose from $0.9m to $1.1m, while net income per fully-diluted share increased to $0.14 from $0.11 in the second quarter last year.
The company attributed the drop in revenues to a sales volume decline year-on-year and the mix of sales performance between route and non-route sales. Gross sales fell by 2.4% on a volume decrease of 10.8%.
Route net sales decreased by 3.8% in the second quarter of 2006 versus the comparable period in 2005. Non-route net sales were up 1.0% against the same period last year. Sales in new markets through third-party distributors increased but were partially offset by reduced distribution in existing markets.
Tasty Baking’s gross margin in the second quarter of 2006 was 36.0%, up 1.8 percentage points against the comparable period last year, driven by improved price realisation on route net sales.
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By GlobalData“We were pleased to announce second-quarter 2006 earnings per fully-diluted share of $0.14 along with a 1.8 percentage point improvement in gross margin over the second quarter of 2005,” said president and chief executive officer Charles P. Pizzi. “Over the last three years, gross margin has improved 7.4 percentage points. These results demonstrated our ability to deliver solid margin improvement and earnings growth in a challenging economic environment. We have leveraged our technology and people to enhance cost control and increase efficiencies throughout the business.”
For the half-year, net sales rose by 0.7% to $85.5m from $84.9m in first half of 2005, while net income reached $2.1m, or $0.25 per fully diluted share, compared with $1.4m, or $0.17 per fully diluted share, in the same period last year.
