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TOFUTTI ANNOUNCES RESULTS FOR FISCAL YEAR ENDED December 28, 2024

Edison, New Jersey, March 28, 2025 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) issued its results for the fiscal year ended December 28, 2024 today.

Tofutti Brands reported net sales for the fiscal year ended December 28, 2024 of $8,820,000, a decrease of $1.248,000 or 12%, from net sales of $10,068,000 for the fiscal year ended December 30, 2023. Sales of plant-based cheese products decreased to $7,428,000 in the fiscal year ended December 28, 2024 from $8,564,000 in the fiscal year ended December 30, 2023. Sales of our plant-based cheese products were negatively impacted by increased competition with the introduction of new vegan cheese products by a number of other companies with significantly greater resources than us. Sales of our frozen dessert product lines decreased to $1,392,000 in the fiscal year ended December 28, 2024 from $1,504,000 in fiscal 2023. Sales of our frozen dessert products, which are part of the ice cream food category, have been negatively impacted by the industry-wide decline in ice cream sales.

The Company’s gross profit for the year ended December 28, 2024, decreased by $546,000 to $2,250,000 from $2,797,000 for the fiscal year ended December 30, 2023. Our gross profit percentage for the fiscal year ended December 28, 2024 was 26% compared to 28% for the fiscal year ended December 30, 2023. The decrease in gross profit was caused primarily by the decrease in sales and the decrease in gross profit percentages was caused by increase in the cost of packaging and certain key ingredients. During the fourth quarter of 2024, we instituted a general price increase which became effective at the start of fiscal year 2025.

Total operating expenses decreased by $177,000, or 6%, to $2,858,000 for the year ended December 28, 2024 compared to total operating expenses of $3,035,000 in the year ended December 30, 2023. As a result of the foregoing we recorded an operating loss of $607,000 in the year ended December 28, 2024 as compared with an operating loss of $238,000 in the year ended December 30, 2023.

Income tax expense for the year ended December 28, 2024 was $251,000 compared to income taxes of $126,000 for the year ended December 30, 2023. The increase in income tax expense was due to a revaluation to the Company’s deferred tax asset. We recorded a net loss of $860,000 in the year ended December 28, 2024 as compared with a net loss of $366,000 in the year ended December 30, 2023.

At December 28, 2024, we had approximately $462,000 in cash, and our working capital was $2,893,000 as compared to $837,000 in cash and working capital of $3,440,000 at December 30, 2023. Our cash position at March 25, 2025 was $626,000. We principally operate our business on the cash flows from our operations and currently have no borrowings.

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About Tofutti Brands Inc. Founded in 1981 in Manhattan, Tofutti Brands Inc. develops and distributes a complete line of plant-based, dairy-free, vegan products. The company sells dairy-free foods including vegan cheese products, sour cream, dips, and frozen desserts. Tofutti Brands Inc. is a proven innovator in the food industry and available throughout the United States and internationally. Tofutti's product line includes plant-based frozen dessert pints, Tofutti Cuties®, vegan cheese products, which includes Tofutti Better Than Sour Cream®, Better Than Cream Cheese®, Tofutti Better Than Sour Cream® Dips. American cheese slices, and Better Than Ricotta Cheese®; products that are Kosher-Parve, Halal, and vegan. For more information, visit www.tofutti.com.

Forward-Looking Statements. Some of the statements in this press release concerning the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products, and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission.