Tasty Baking's Q3 Net Sales Increases
Published:02-November-2009
By Staff Reporter
Driven by higher volumes combined with the net benefits of higher product selling prices
Philadelphia-based Tasty Baking Company, a manufacturer of snack products, has reported net sales of $43.6m for the third quarter of 2009, a increase of 1.8% compared to $42.8m for the same period previous year.
The company noted that this increase in net sales was driven by higher volumes combined with the net benefits of higher product selling prices. These increases, however, were negatively impacted by increased product return costs as compared to the prior year.
The company reported a net loss of $0.5m for the quarter as compared to a net loss of $1.4m in the third quarter of prior year.
Gross profit increased $0.5m or 4.3% in the quarter compared to the previous year quarter. This improvement was driven by the reduction in key ingredient and packaging costs as well as by the benefit of higher sales volumes, which were partially offset by the increase in fixed manufacturing expenses as compared to the third quarter of the prior year.
Charles Pizzi, president and chief executive officer of Tasty Baking Company, said: “During the third quarter of 2009 we continued to grow sales volumes, expanded our market share in our Route market, and improved gross margin compared to the prior year period. We were also pleased to see further improvement in key ingredients and packaging costs in the third quarter of 2009 versus the third quarter of last year.
“With regards to the new bakery project, we have taken occupancy of the building that houses our new production lines and distribution center. During October we began the phased, line-by-line transition into the new facility and, at this point, we are producing pies at the new facility. We anticipate that this transition will be completed during the second quarter of 2010.”
Tasty Baking Company, headquartered in Philadelphia, Pennsylvania, is a baker of snack cakes, pies, cookies, and donuts with manufacturing facilities in Philadelphia and Oxford, Pennsylvania.
