TOFUTTI ANNOUNCES UNAUDITED RESULTS FOR THE THIRTEEN AND TWENTY-SIX WEEKS ENDED JUNE 29, 2024

Core Insights - Tofutti Brands Inc. reported a significant decline in net sales for both the thirteen weeks and thirty-nine weeks ended September 28, 2024, with a decrease of 21% and 16% respectively compared to the same periods in the previous year [1][2]. Sales Performance - For the thirteen weeks ended September 28, 2024, net sales were $1,986,000, down from $2,515,000 for the same period in 2023, primarily due to decreased sales in vegan cheese and frozen dessert products [1]. - Vegan cheese sales fell to $1,648,000 from $2,110,000, while frozen dessert sales decreased to $338,000 from $405,000 during the same thirteen-week period [1]. - For the thirty-nine weeks ended September 28, 2024, net sales totaled $6,481,000, down from $7,724,000, with vegan cheese sales dropping to $5,383,000 from $6,492,000 and frozen dessert sales decreasing to $1,098,000 from $1,232,000 [2]. Profitability - Gross profit for the thirteen weeks ended September 28, 2024, was $485,000, a decrease from $786,000 in the prior year, resulting in a gross profit percentage decline from 31% to 24% [3]. - For the thirty-nine weeks, gross profit decreased to $1,621,000 from $2,059,000, with a gross profit percentage of 25%, down from 27% [3]. Net Losses - The company reported net losses of $207,000 ($0.04 per share) for the thirteen weeks and $542,000 ($0.10 per share) for the thirty-nine weeks ended September 28, 2024, compared to a net income of $110,000 ($0.02 per share) and a net loss of $310,000 ($0.06 per share) for the same periods in 2023 [4]. Financial Position - As of September 28, 2024, Tofutti Brands had approximately $176,000 in cash and working capital of approximately $2,961,000, compared to $837,000 in cash and $3,440,000 in working capital at December 30, 2023 [5]. Management Commentary - The CEO expressed disappointment in the revenue and operating results for the first thirty-nine weeks of 2024 but indicated efforts to recover lost sales and improve operating results in the fourth quarter and into 2025 [6].