While the company registered sales of Rs 27.88 crore as against Rs 32.25 crore for the second quarter in 1999, its net loss stood at Rs 1.54 crore compared to Rs 2.14 crore in the second quarter of the last fiscal.

According to a press release, sales were affected because of an 8 per cent higher excise duty, higher sales tax in some states and a sluggish market. However, the company countered these with intensified marketing efforts and improved internal cost management, which has helped it reduce losses. As a part of its marketing efforts, the company has introduced the vitamin reinforced `Lacto King' to address consumers' growing health consciousness and has improved product features in its flagship brand `Coffy Bite'. Both interest and depreciation in the period were lower at Rs 0.86 crore (Rs 1.06 crore) and Rs 1.76 crore (Rs 1.85 crore) respectively.

For the half year ended September 30, 2000, the company recorded sales of Rs 53.76 crore as against Rs 50.96 crore in the corresponding half of the previous year. Its net loss was marginally lower at Rs 4.5 crore (Rs 4.53 crore).