Tofutti Brands Inc (TOFB) swung to a net profit for the year ended Dec. 31, 2016. The company has made a net profit of $0.42 million, or $ 0.08 a share in the year, against a net loss of $0.64 million, or $0.12 a share in the last year.
Revenue during the year grew 5.15 percent to $14.47 million from $13.76 million in the previous year. Gross margin for the year expanded 558 basis points over the previous year to 31.72 percent. Operating margin for the year period stood at positive 3.28 percent as compared to a negative 5.23 percent for the previous year.
Operating income for the year was $0.48 million, compared with an operating loss of $0.72 million in the previous year.
"I am pleased to report that in fiscal 2016 we were successful in returning to profitable operations and our revenues increased after two years of declining sales. We continue to see new opportunities for our soy-cheese product line, which is a category leader. We intend to capitalize on our strong soy-cheese sales with the introduction of a new line of vegan dips and shredded cheddar and mozzarella soy cheeses in the third quarter of 2017. The introduction of these new products and the realization of price increases that were instituted in the last year are expected to maintain our margins in 2017. With the assistance of BDA Advisers, Inc. we are continuing to review our strategic alternatives in order to enhance shareholder value. This review may result in the Company's continuing to pursue value-enhancing initiatives as a standalone company or a possible sale or other form of business combination," concluded David Mintz, the chairman and chief executive officer of Tofutti Brands.
Working capital increases sharply
Tofutti Brands Inc has recorded an increase in the working capital over the last year. It stood at $2.95 million as at Dec. 31, 2016, up 47.23 percent or $0.95 million from $2 million on Jan. 02, 2016. Current ratio was at 2.91 as on Dec. 31, 2016, up from 2.35 on Jan. 02, 2016.
Cash conversion cycle (CCC) has decreased to 43 days for the year from 61 days for the last year. Days sales outstanding went up to 59 days for the year compared with 51 days for the same period last year.
Days inventory outstanding has decreased to 29 days for the year compared with 54 days for the previous year period. At the same time, days payable outstanding went up to 45 days for the year from 43 for the same period last year.
Debt comes down
Tofutti Brands Inc has recorded a decline in total debt over the last one year. It stood at $0.02 million as on Dec. 31, 2016, down 23.81 percent or $0.01 million from $0.02 million on Jan. 02, 2016. Total debt was 0.35 percent of total assets as on Dec. 31, 2016, compared with 0.60 percent on Jan. 02, 2016. Debt to equity ratio was almost stable at 0.01 as on Dec. 31, 2016, when compared with the last year.
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