Net sales for the fourth quarter of 2003 fell by 12.5 per cent to €3.5 million in comparrison with a year earlier, while annual net sales decreased 7 per cent to $15 million. Net losses for the fourth quarter ammounted to $0.4 million - 60 per cent higher than the previous year - with annual net income shifting from a positive $0.7 million in 2002 to a loss of $0.5 million in 2003.
TFF blamed the disappointing results on a continued weakness in consumer demand, which it felt was principally caused by the turbulent political and economic environment, which in turn caused a slowdown in customer orders and delays in new product launches by customers.
Meanwhile, operating costs for 2003 increased $0.4 million, 46 per cent, to $6.6 million. TFF said this rise was due partly to R&D expenditure and start-up costs - $81,000 associated with the company's prospective Latin American business ventures and $40,000 relative to the appointment of UTEK Corporation, a professional mergers and acquisitions consulting firm.
"The progressive and proactive steps the company has initiated to expand our technological capabilities and customer base both in the USA and abroad, should soon begin to favorably impact our sales and help return the company to profitability in 2004. Of particular importance is our recently formed strategic alliance with UTEK Corporation, which should provide new and exciting opportunities for us," said TFF chairman Philip Rosner.
TFF has a proprietary library of more than 36,000 flavour and fragrance product formulations that are used to develop customised products for the beverage, confectionery, food, pharmaceutical, and cosmetic industries.