TOFUTTI BRANDS INC (TOFB)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 revenue was approximately $2.34M, up 17.8% sequentially from Q3’s $1.99M and roughly flat year over year (vs. an estimated Q4 2023 of ~$2.34M); gross margin improved sequentially to ~26.9% from 24.0%, but the quarter posted a net loss of ~$0.32M driven largely by a deferred tax asset revaluation recorded at year-end .
• Full-year 2024 net sales declined 12% to $8.82M (from $10.07M) on intensified vegan cheese competition and an industry-wide decline in ice cream; gross margin fell to 26% (28% in 2023) as packaging and key ingredient costs rose .
• Management instituted a general price increase in Q4 2024 effective at the start of FY25—a key margin lever heading into 2025—and reported no borrowings and ~$462k cash at 12/28/24 (subsequently ~$626k at 3/25/25) .
• No public earnings call transcript was found; there were no observable Wall Street consensus estimates to benchmark against (S&P Global shows no published consensus, see Estimates Context).

What Went Well and What Went Wrong

What Went Well

• Sequential revenue and margin recovery into Q4: revenue rebounded to ~$(2.34)M and gross margin to ~26.9% vs. Q3’s $1.99M and 24.0% as mix and price dynamics stabilized into year-end .
• Pricing action implemented: “During the fourth quarter of 2024, we instituted a general price increase which became effective at the start of fiscal year 2025,” positioning margin for improvement in FY25 .
• Liquidity intact without leverage: cash of ~$462k and working capital of ~$2.89M at 12/28/24, with cash at ~$626k by 3/25/25; no borrowings outstanding .

What Went Wrong

• Category and competitive pressure: FY24 sales fell 12% as vegan cheese faced increased competition (new entrants with greater resources) and frozen dessert products were hurt by an industry-wide ice cream decline .
• Cost inflation compressed margins: FY gross margin declined to 26% (from 28%) due to higher packaging and key ingredient costs, despite Q4’s sequential improvement .
• Tax-driven loss impact in Q4: year-end income tax expense rose to $251k due to deferred tax asset revaluation; by comparison, YTD tax through Q3 was $5k, implying a significant Q4 tax burden that weighed on EPS despite better operations .

Financial Results

Quarterly P&L summary (oldest → newest):

Q4 2024 context (sequential and YoY; all changes calculated from cited values):

Notes on YoY comparables: Q4 2023 values are derived from FY 2023 less 39-week results disclosed in the Q3 2024 release (Revenue: $10.068M − $7.724M ≈ $2.344M; Gross Profit: $2.797M − $2.059M ≈ $0.738M; Net Loss: $0.366M − $0.310M ≈ $0.056M) .

Segment revenue (where disclosed):

Key KPIs and balance sheet:

Guidance Changes

Management additionally disclosed that year-end income tax expense rose primarily due to a deferred tax asset revaluation, impacting FY and Q4 results .

Earnings Call Themes & Trends

No public Q4 2024 earnings call transcript was found. Thematic evolution below reflects press releases.

Management Commentary

• “While our revenues were disappointing in the first six months of 2024, we were pleased with our improved operating results… we look forward to achieving improved operating results in the second half of 2024.” — Steven Kass, Chief Executive and Financial Officer .
• “While our revenues and operating results were disappointing in the first thirty-nine weeks of 2024, we are working hard to replace lost sales and hope to improve our operating results in the fourth quarter and into 2025.” — Steven Kass .
• “During the fourth quarter of 2024, we instituted a general price increase which became effective at the start of fiscal year 2025.” — Company press release (FY24 results) .

Q&A Highlights

• No public Q4 2024 earnings call transcript was found; therefore, there are no company-recorded Q&A highlights for the period [SearchDocuments: no result].

Estimates Context

• S&P Global shows no published Wall Street consensus for Q4 2024 EPS or revenue (# of estimates not available). As a result, we cannot compute beats/misses for this quarter. Values retrieved from S&P Global.*
• S&P GetEstimates returned no consensus metrics for “Primary EPS Consensus Mean” (empty) and “Revenue Consensus Mean” (no consensus; S&P records an “actual” revenue value but no estimate base for comparison). Values retrieved from S&P Global.*

Key Takeaways for Investors

• Sequential improvement into Q4: revenue and gross margin recovered from Q3 lows, indicating stabilization ahead of price increases in FY25 .
• 2024 was a reset year: sales down 12% and margins compressed on competition and higher input/packaging costs; price actions and cost normalization are the levers to watch in 2025 .
• Tax revaluation masked operational progress: a sizeable year-end tax expense materially pressured Q4 EPS despite better sequential operating performance—this is a non-operational drag to note in modeling .
• Liquidity adequate; no leverage: the company operates without borrowings, with cash improving post year-end, reducing financial risk while management works to rebuild sales .
• Focus areas for the next two quarters: evidence that price increases stick, recapture of vegan cheese shelf space, improvement in frozen dessert category trends, and gross margin trajectory vs. cost inflation .
• With no consensus coverage, stock can be headline sensitive: press releases on distribution wins, price realization, or cost relief may disproportionately drive volatility (no consensus anchor). Values retrieved from S&P Global.*

Footnotes:

• Q4 2024 figures marked “calculated” are derived from FY 2024 results less the 39-week (through Q3) results disclosed in company releases .
• *Values retrieved from S&P Global.