US dairy-free group Tofutti Brands has said it is “cautiously optimistic” about its prospects this year after a mixed 2013, when sales rose but margins fell and losses widen.
In the year to 28 December, Tofutti posted a net loss of US$908,000, or $0.18 per share, compared to a net loss of $824,000, or $0.16 a share a year earlier. The company lapped a year in which it filed an income tax benefit.
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Net sales rose 2% to $14.7m. Tofutti pointed to an increase of sales in soy-cheese product line. It said its frozen dessert business continues to be hit by the “overall sluggishness” of sales in the ice cream category.
The improved sales pushed up gross profit from $3.95m a year to $3.97m. However, gross margin dipped from 27% to 28% amid higher freight and commodity costs.
Nevertheless, Tofutti chairman and CEO David Mintz saw reasons for optimism this year. “We continue to see increased interest in our soy-cheese product line. We are also optimistic about the continued acceptance of our nondairy and gluten-free ricotta cheese products which were introduced in 2013.”
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By GlobalData
