Tofutti Sales Slip in Second Quarter, Rise in First Half
Tofutti Brands Inc. has announced results for the 13- and 26-week periods ended July 2, 2016. The Cranford, New Jersey, USA-based producer of frozen and refrigerated dairy-free desserts and other products reported net sales of $3,554,000 during the second quarter, a decrease of $70,000, or 2%, compared to net sales of $3,624,000 for the 13 weeks ended on June 27, 2015. Gross profit and gross profit percentage for the quarter were approximately $1,184,000 and 33%, respectively, compared to $1,076,000 and 30%, respectively for the period a year ago.
The increase in the gross profit and gross profit percentage in the latest 13-week period was due primarily to the reduction in sales allowance expense. The company had net income of $194,000, or $0.04 per share, for the second quarter, compared to a net loss of $24,000, or $0 per share, for the same period a year before.
First Half Results
Net sales for the 26-week period ended July 2, 2016, totaled $7,296,000, an increase of $529,000, or 8%, compared to $6,767,000 generated during the like period in the previous year. The company's gross profit and gross profit percentage for the first half of this year were $2,423,000 and 33%, respectively, compared to $1,822,000 and 27% for the like period in 2015. The rise was due primarily to the increase in sales and the decrease in the company's promotional allowance programs in the 26-week period ended on July 2.
Net income during the first half amounted to $324,000, or $0.06 per share compared to a net loss of $401,000, or ($0.08) per share, for the 26 weeks ended June 27, 2015.
As of July 2, Tofutti Brands had approximately $185,000 in cash and cash equivalents on hand, and its working capital was approximately $2.9 million, compared with approximately $55,000 in cash and cash equivalents and working capital of $2.0 million on January 2.
David Mintz, chairman and chief executive officer, commented: "In the second quarter we were able to maintain profitable operations. Sales of our frozen dessert product line increased to $1,097,000 in the second quarter from $1,005,000 in the second quarter of 2015 as a result of improved frozen dessert novelty sales. Sales of soy-cheese products increased to $2,417,000 in the 2016 period from $2,378,000 in the 2015 period, primarily as a result of improved domestic sales. We are continuing to work diligently to achieve positive operating results for the remainder of 2016."
Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of dairy-free products throughout the United States and over 30 other countries. The company sells more than 80 milk-free foods that range from frozen desserts, blintzes and pizza to ravioli and lasagna throughout the United States and more than 30 other countries.