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.”
About Tofutti
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.
