Tofutti Brands reported net sales of $3,498,000 for the 13 weeks ended June 28, 2014, a decrease of $764,000, or 18%, compared to net sales of $4,262,000 for the same period the year before. The decrease was attributed to a fall in frozen food product sales, mainly desserts, as well as a smaller decrease in the company’s nondairy cheese product line.
David Mintz, chairman and chief executive officer of the Cranford, New Jersey, USA-headquartered company, stated: “Our disappointing results for the second quarter of 2014 primarily reflect a weakness in frozen food product sales. We are focused on expanding the market for our frozen and non-dairy cheese products. Our introduction of new products and price increases instituted in the first and second quarters of the year should improve our gross margins during the remainder of the year.”
In the 2014 period the company increased promotional and allowance activity by over $100,000, which negatively affected reported sales. Net sales for the 26-week period ended June 28 amounted to $7,355,000, a decrease of $346,000, or 4%, compared to net sales of $7,701,000 for the same period in 2013. The decline was primarily from the fall of sales in the second quarter, which offset the increase in sales in the first quarter.
The gross profit and gross profit percentage for the most recent 13-week period were approximately $961,000 and 27%, respectively, compared to $1,489,000 and 35%, respectively, for the same period in 2013. Tofutti’s gross profit and gross profit percentage for the 26-week period ending last June 28 were $2,251,000 and 31%, respectively, compared to $2,493,000 and 32%, respectively, for the corresponding period in 2013. The decrease in the company’s gross profit percentage was due primarily to the decline in sales and a substantial increase promotional allowance programs in the 13weeks ended last June 28.
For the most recent 13-period Tofutti reported a loss of $190,000, or $0.02 per share, compared to income of $181,000, or $0.04 per share, for the same period in 2013.
The company reported a loss of $78,000 before an income tax expense of $6,000 for the 26-week period ended June 28, 2014 compared to a loss of $82,000 before an income tax expense of $6,000 for the 26-week period ended June 29, 2013. The net loss for the 26 weeks ended June 28, 2014 was $84,000, or $0.02 per share, compared to a net loss of $88,000, or $0.02 per share, for the 26 weeks ended June 29, 2013.
As of June 28, 2014, the company had approximately $171,000 in cash and cash equivalents and its working capital was approximately $2.6 million, compared with approximately $214,000 in cash and cash equivalents and working capital of $2.7 million at December 28, 2013.
About Tofutti Brands Inc.
Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of dairy-free products that range from non-milk ice cream pints, Tofutti Cutie sandwiches and novelty bars to a growing array of prepared frozen foods including Pizza Pizzaz, Mintz’s Blintzes, and a Cheese Ravioli line – all made with milk-free cheeses. The company sells more than 80 products throughout the United States and over 30 other countries.
