Tue, May 14, 9:12 PM (73 days ago)
Tofutti Brands Inc. reported a net loss of $303,000 for the quarter ended March 30, 2024, compared to a net loss of $102,000 in the same period last year. Net sales decreased by 11% to $2,212,000, primarily due to a significant drop in vegan cheese sales, which fell from $2,100,000 to $1,809,000. Frozen dessert sales saw a slight increase to $403,000. Gross profit decreased to $470,000 from $606,000, with gross profit margins dropping from 24% to 21%, impacted by higher costs in key ingredients and packaging. Operating expenses rose to $772,000 from $696,000, driven by increases in marketing and general and administrative expenses. Cash flow from operations was negative at $482,000, and cash reserves decreased from $837,000 to $351,000. The company’s working capital also reduced from $3,861,000 to $3,159,000. Management highlighted ongoing competitive pressures in the vegan cheese market and cost increases as primary challenges. The company believes its current cash and expected cash flows will be sufficient for the next twelve months.