Losses for the first quarter period ending March 27 were at $3,920,000 with sales dropping 6 per cent.

This is compared to a $70,000 drop for the same period in the previous year.

Bad winter weather, a fire at the company's Hunting Park baking plant, relocation costs and a decline in demand for snack cakes were all stated as contributing factors to the loss.

However Tasty Baking said they were ‘confident in their ability to navigate the many challenges'.