Mon, May 19, 9:30 PM (35 days ago)
**Tofutti Brands Inc. (TOFB) Q1 2025 Financial Summary** **Financial Health and Performance:** * **Revenue:** Net sales decreased by $621,000 (28%) to $1,591,000 for Q1 2025, compared to $2,212,000 in Q1 2024. Sales decline attributed to increased competition and tariff uncertainties. * **Profit Margins:** Gross profit increased to $589,000 (37% margin) in Q1 2025 from $474,000 (21% margin) in Q1 2024, due to significant price increases implemented in late 2024. * **Net Loss:** Net loss narrowed to $162,000 in Q1 2025 from $303,000 in Q1 2024. * **Cash Flow:** Net cash provided by operating activities was $148,000 in Q1 2025, compared to a net cash outflow of $482,000 in Q1 2024. * **Liquidity:** Cash on hand was $609,000 as of March 29, 2025, with working capital of approximately $2,738,000. **Trends and Uncertainties:** * **Sales Trends:** Sales of vegan cheese and frozen dessert products declined due to increased competition and tariff uncertainties. * **Cost Management:** Significant reductions in freight and marketing expenses, with stable selling and product development costs. * **Inflation and Tariffs:** Potential impacts from inflation and tariffs on commodity costs and pricing strategies. * **Seasonality:** Historically, slightly higher sales in Q2 and Q3, with lower sales in Q4 and Q1. **Future Operations Impact:** * **Pricing Strategy:** Anticipated stable freight expense as a percentage of sales for the remainder of 2025. * **Operational Efficiency:** Continued focus on cost management and operational efficiency. * **Market Risks:** Exposure to market risks related to interest rates, foreign currency exchange rates, and commodity prices is not material. **Internal Controls and Management Discussion:** * **Internal Controls:** Management concluded that disclosure controls and procedures were not effective as of March 29, 2025, due to insufficient resources and monitoring. * **Risk Factors:** Increased commodity costs and inflationary pressures could adversely affect profit margins and business operations. **Conclusion:** Tofutti Brands Inc. faced challenges in Q1 2025 with declining sales and increased competition. However, the company managed to improve profit margins through price increases and cost management. Future operations will focus on maintaining operational efficiency and navigating market uncertainties.