Mon, Nov 18, 9:22 PM (58 days ago)
For the quarter ended September 28, 2024, Tofutti Brands Inc. (TOFB) reported a significant decline in financial performance. Net sales fell 21% to $1,986,000 from $2,515,000 in the prior year, primarily due to decreased sales of vegan cheese products and frozen desserts, attributed to increased competition and a decline in export sales. Gross profit also decreased to $485,000, with a gross margin drop to 24%. Operating expenses rose slightly, resulting in an operating loss of $207,000 compared to a profit of $112,000 the previous year. The net loss for the quarter was $207,000, worsening from a profit of $110,000 in Q3 2023. Cash decreased to $176,000, with working capital declining to $2,961,000 from $3,440,000. The company anticipates continued challenges, including elevated freight expenses and competitive pressures, which may impact future operations. Overall, Tofutti Brands is navigating a difficult market environment, with uncertainties affecting revenue generation and profit margins.