TSX: SRF
KELOWNA, BC, May 9, 2013 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF)
("Sun-Rype" or the "Company") today released its financial results for
the quarter ended March 30, 2013.
Financial Highlights
Sun-Rype's net sales in the first quarter of 2013 were $36.6 million
compared to $39.0 million in the first quarter of 2012. The Company's
net income in the first quarter of 2013 was $0.5 million or $0.05 per
share, compared to net income of $1.4 million or $0.13 per share in the
first quarter of 2012.
"The decrease in Sun-Rype's net sales in the first quarter of 2013 was
due primarily to decreased branded sales as compared to the same period
last year," commented Dave McAnerney, President & CEO. "Gross profit
decreased by $0.3 million primarily related to lower net sales,
production overhead costs, distribution costs, raw material costs and
increased production efficiencies. Net Income decreased due to lower
gross profit, increased selling expenses, and a one-time charge to
general and administrative expenses of approximately $0.6 million on an
after tax basis."
Outlook
Despite reporting net income in 2012 and the first quarter of 2013 after
incurring a net loss in 2011, the Company continues to face
challenges. Market data indicates that sales in the shelf-stable juice
category, in which the Company derives approximately 60% of its net
sales, have been softening. It is unclear whether these declines will
continue. Strong competitive pressures experienced on branded products
in 2012 and the current year are anticipated to continue. The prices
of certain concentrates and apples are returning to historical
averages, but price volatility is anticipated moving forward.
The Company is continuing to focus on launching innovative products and
broadening geographic distribution of its products to mitigate the
challenges described. Increased product development and launch costs
are expected in 2013, and there is no certainty that the incremental
sales from these products will exceed costs.
Sun-Rype Products Ltd., based in Kelowna, BC, is a manufacturer and
marketer of fruit-based juices and snacks. Sun-Rype is a publicly
traded Canadian company with its common shares listed on the Toronto
Stock Exchange under the symbol SRF.
Additional Information
The foregoing are financial highlights only. Management's Discussion and
Analysis and consolidated financial statements and accompanying notes
of Sun-Rype Products Ltd. for the year ended December 31, 2012, are
available on the Canadian Securities Administrator's website at www.sedar.com and on the Company's website at www.sunrype.com. Additional information relating to Sun-Rype's operations can be found
in the Company's Annual Information Form, filed with all applicable
Canadian securities commissions and available for viewing on the
Canadian Securities Administrator's website at www.sedar.com and on the Company's website at www.sunrype.com.
Forward Looking Statements
Statements contained in this press release, which are not based on
historical fact, including without limitation, statements containing
the words "may", "will", "plans", "intends", "expects", "anticipates",
"believes", "estimate", "continue" and similar expressions, constitute
"forward looking information" within the meaning of applicable Canadian
securities laws. Forward looking statements contained in this document
may involve, but are not limited to, statements relating to the
Company's objectives, priorities, strategies, actions, targets,
expectations and outlook. Forward looking statements are necessarily
based upon assumptions and predictions with respect to the future,
including but not limited to the factors referred to below. As a
result, forward looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, events or developments to be materially different from any
future results, events or developments expressed or implied thereby.
These risks, uncertainties and other factors include, but are not
limited to, changes in the consumer packaged goods industry and
external market factors, as well as the factors referred to in the
Company's Annual Information Form dated March 6, 2013, and its other
filings with the applicable Canadian securities regulatory
authorities. In light of these uncertainties, assumptions and risks,
readers are cautioned not to place undue reliance on such forward
looking statements. Except as required by law, the Company assumes no
obligation to update or revise such information to reflect later events
or developments.
www.sunrype.com
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Sun-Rype Products Ltd.
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Condensed Consolidated Statements of Comprehensive Income
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(unaudited)
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(in thousands of Canadian dollars, except per share amounts)
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For the quarters ended
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March 30, 2013
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March 31, 2012
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Net sales
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$
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36,643
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$
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39,021
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Cost of sales
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(29.403)
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(31,527)
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Gross profit
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7,240
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7,494
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Sales and marketing expenses
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(2,811)
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(2,099)
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Distribution expenses
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(1,636)
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(1,925)
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General and administrative expenses
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(1,947)
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(1,291)
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Results from operating activities
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846
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2,179
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Finance costs
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(140)
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(229)
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Income before income tax
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706
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1,950
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Income tax expense
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(177)
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(509)
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Net income for the period
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529
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1,441
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Other comprehensive income (loss)
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Foreign currency translation differences for foreign operations
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53
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(14)
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Total comprehensive income for the period
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$
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582
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$
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1,427
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Basic and diluted earnings per share
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$
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0.05
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$
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0.13
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SOURCE: Sun-Rype Products Ltd.
