Tofutti Brands Inc. Reports Increased Net Loss and Decreased Sales for Fiscal Year Ending December 2024

Tofutti Brands Inc. reported a net loss of $860,000 for the fiscal year ending December 28, 2024, a significant increase from the $366,000 loss recorded in the previous fiscal year. The company's net sales decreased by 12% to $8.82 million, down from $10.07 million in fiscal 2023. This decline was primarily attributed to a drop in sales of plant-based cheese products, which fell to $7.43 million from $8.56 million, as well as a decrease in frozen dessert sales, which dropped to $1.39 million from $1.50 million. The overall gross profit also decreased to $2.25 million, resulting in a gross profit margin of 26%, down from 28% in the prior year.

In terms of operational changes, Tofutti experienced a decrease in sales to health food accounts, which accounted for 40% of total sales in fiscal 2024, down from 44% in fiscal 2023. Conversely, sales to foreign distributors increased slightly to $1.28 million, representing 14% of total sales, compared to 12% in the previous year. The company continues to face significant competition in the plant-based cheese market, which has been exacerbated by the introduction of new vegan cheese products from larger competitors.

Tofutti's strategic focus remains on expanding its product line and maintaining brand awareness through marketing efforts. The company has not made any significant acquisitions or product launches in the past year but continues to emphasize its commitment to plant-based, dairy-free products. The company’s employee count remained stable at five full-time employees, reflecting its lean operational structure.

Looking ahead, Tofutti Brands Inc. anticipates challenges in maintaining profitability due to ongoing competition and market conditions. The company reported a decrease in cash reserves to $462,000 as of December 28, 2024, down from $837,000 the previous year, which may impact its ability to fund operations and product development. Management has indicated that they will need to secure additional financing to support future operations if losses continue. The company is also focused on improving its internal controls, which have been identified as ineffective, and plans to address these weaknesses as part of its ongoing operational strategy.