Philadelphia-based Tasty Baking Company (TBC), one of the largest independent baking companies in the US, has posted gross sales of US$65.6m for its Q2 ended 29 June 2002, down 14% compared with last year’s US$66.5m.
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Q2 net sales fell 2.6% to US$42.1m, from US$43.2m year on year. Net income for the 13 weeks was $879,000, compared with $2.5 million for the same period last year, while net income per diluted share was US$0.11, compared with US$0.31 per diluted share during the comparable period in 2001.
However, the Q2 2002 results were impacted by a restructure charge of US$1.4m. This charge primarily relates to the closure of six of TBC’s thrift stores during the Q2 and severance charges relating to the elimination of certain manufacturing and administrative positions. The after-tax effect of this charge was US$843,000. Therefore, after reflecting the effect of this charge, the company’s operating results for the Q2 were US$1.7m.
For the H1 ended 29 June, gross sales were US$129.7m, compared with US$132.2m last year, a decrease of 1.9%. Gross sales, less discounts and allowances, resulted in net sales of US$82.7m, down 3.2% year on year. Net income was US$2.1m, compared with US$4.6m reported during the comparable period in 2001. After reflecting the after-tax effect of the restructure charge of US$843,000, TBC’s operating results for the H1 2002 were US$2.9m.
Chairman comments
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By GlobalDataCarl S. Watts, chairman and CEO said: “Sales for the Q2, although behind a year ago and certainly behind our goal, were improved over the Q1. We continued to experience heavy promotional activity on the part of category participants, having a negative effect on our sales in the route marketing area. National sales continues their outstanding performance with a double digit increase for the quarter.”
Watts added: “As stated earlier, we took a restructure charge during the quarter for the costs relative to the closing of six thrift stores and the elimination of certain positions in the Company. We believe these two moves will have positive results on the business during the Q3 and Q4.”
Watts concluded: “Looking ahead, we remain optimistic about the 2H 2002. We are starting to see certain positive things occur which would lead us to believe that improvement is forthcoming.”
