Tofutti Brands Inc. reported a decline in financial performance for the thirteen and thirty-nine weeks ended September 28, 2024, compared to the same periods in the previous fiscal year. Net sales for the thirteen weeks were $1,986,000, down 21% from $2,515,000, while for the thirty-nine weeks, sales decreased by 16% to $6,481,000 from $7,724,000. The decrease in revenue was primarily driven by lower sales of vegan cheese products, which fell to $1,648,000 from $2,110,000 in the thirteen-week period, and from $5,383,000 to $6,492,000 in the thirty-nine-week period. Sales of frozen dessert products also declined, contributing to the overall revenue drop.

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 margin of 24%, down from 31%. For the thirty-nine weeks, gross profit was $1,621,000, compared to $2,059,000, with a gross profit margin of 25% versus 27% in the previous year. The decline in gross profit was attributed to reduced sales and increased competition in the vegan cheese market.

Operating expenses for the thirteen weeks were significantly lower at $692,000 compared to $2,157,000 in the prior year, while for the thirty-nine weeks, they increased to $2,674,000 from $2,218,000. The company reported a loss from operations of $207,000 for the thirteen weeks, contrasting with an income of $112,000 in the previous year, and a loss of $536,000 for the thirty-nine weeks, compared to a loss of $159,000.

Net income for the thirteen weeks was a loss of $207,000, compared to a profit of $110,000 in the prior year. For the thirty-nine weeks, the net loss increased to $542,000 from $310,000. Basic loss per share for the thirteen weeks was $(0.04), down from $0.02, and for the thirty-nine weeks, it was $(0.10), compared to $(0.06).

As of September 28, 2024, Tofutti Brands reported total stockholders' equity of $58,528,000, a decrease from $110,110,000 the previous year. Cash at the end of the period was approximately $176,000, down from $727,000. The company also noted that its internal controls over financial reporting were deemed ineffective due to material weaknesses, attributed to limited resources and a small workforce.

Tofutti Brands continues to face challenges in the competitive vegan cheese market and is adjusting its strategies to address these issues while managing its operational costs.