Rocky Mountain Chocolate Factory reported a $900,000 loss for fiscal year 2021 compared with a profit of $1.4 million for the previous year.
Durango’s only publicly traded company said public health measures that closed stores and reduced store and mall hours caused widespread business disruptions leading to the money-losing year.
“We have experienced significant business disruptions resulting from efforts to contain the rapid spread of the novel coronavirus,” a news release issued by the firm said.
Mandated self-quarantines and closures of stores across the United States and the world reduced operational store and mall hours, cutting sales, the firm said.
“Nearly all locations experienced reduced operations as a result of, among other things, modified business hours and store and mall closures,” the news release said.
The Durango chocolatier, which trades as RMCF on the Nasdaq Composite market, reported fiscal 2021 results Tuesday. Its fiscal year ended in February.
One share of RMCF finished Wednesday at $6.62, up 16 cents from Tuesday, a 2.94% increase.
Total revenue decreased 26.3% from $31.8 million in fiscal year 2020 to $23.5 million in fiscal year 2021.
Factory sales dropped 19.5% from $21.5 million in fiscal year 2020 to $17.3 million in 2021.
The decrease in factory sales was primarily caused by a 37.3% slide in sales of chocolates and other products to RMCF’s network of franchised and licensed retail stores, and this, again, was attributed to pandemic-related cuts in business hours and store operations.
Things were improving toward the end of the fiscal year.
The RMCF reported net income increased to $2.2 million for the fourth quarter of the year compared with a net loss of $524,000 for the same quarter in fiscal year 2020.
In addition, total factory sales for the quarter increased 8.4% to $6.1 million from $5.6 million in the same quarter in 2020.
Fourth quarter sales for the company cover sales from December through February.
The company also opened three new franchise stores in the United States and three stores located outside the country.
Rocky Mountain Chocolate Factory makes gourmet chocolates and other confectionery products in its factory in Bodo Industrial Park.
RMCF currently operates 381 Rocky Mountain Chocolate Factory chocolate shops and related self-serve frozen yogurt stores in 39 states, Canada, South Korea, Qatar, Panama and the Philippines.