TOFUTTI Announces Second Quarter and Six Month Results

Tofutti Brands

today announced its results for the thirteen and twenty-six week periods ended June 30, 2012. Tofutti Brands reported net sales for the thirteen weeks ended June 30, 2012 of $3,699,000, a decrease of $751,000, or 17%, from the sales level realized for the thirteen weeks ended July 2, 2011. Net sales for the twenty-six week period ended June 30, 2012 decreased to approximately $7.0 million from approximately $8.5 million for the twenty-six week period ended July 2, 2011. Sales in both the thirteen and twenty-six week periods continued to be impacted by the decision of Trader Joe's, formerly the company's largest customer, to discontinue stocking branded goods in mid-2011. In addition, sales were negatively impacted due to the discontinuance of marginally profitable products. The company's gross profit and gross profit percentage for the thirteen week period ending July 2, 2011 were approximately $1,133,000 and 31%, respectively, compared to $1,231,000 and 28%, respectively, for the period ending July 2, 2011. The decrease in gross profit was due to the decrease in sales, while the increase in gross profit percentage was due to the positive effect of price increases put into effect in the second quarter coupled with our ongoing program to eliminate marginally profitable products. The company's gross profit and gross profit percentage for the twenty-six week period ending June 30, 2012 were approximately $1,946,000 and 28%, respectively, compared to $2,314,000 and 27%, respectively, for the period ending July 2, 2011.