Asantae Releases Q1 2012 Results
- Q1 2012 Sales Increased by 270% to $874,272 over Q4 2011
- Q1 2012 Gross profits increased to 74% from 35% over Q4 2011
- Company re-iterates record revenues and profitability in 2012
VANCOUVER, BC and MESA, AZ, May 30, 2012 /CNW/ - Asantae Holdings International Inc. (TSXV: JVA, OTC: ASNHF) ("Asantae" or the "Company"), a producer and marketer of innovative nutritional products through a network of independent distributors today announced the filing of its quarterly financial statements and related management discussion and analysis for the period ending March 31, 2012, which are available under the company's profile on SEDAR at www.sedar.com. All figures are in U.S. dollars and were prepared in accordance with International Financial Reporting Standards (IFRS).
A summary of the financial results is below:
Sales for Q1 2012 were $874,272, as compared to $567,788 for Q1 2011 and $324,435 Q4 of 2011 (an increase of 54% and 270% respectively). The increase in Q1 revenues is largely due to the launch of the company's new weight-loss product, RealW8™.
Gross Profit for Q1 2012 was $648,325 (74% of Sales) as compared to $287,760 (51% of Sales) for Q1 of 2011 and $114,587 (35% of Sales) for Q4 2011. The increase in Gross Margins is a direct result of improved RealW8™ margins and increased efficiencies in the supply chain as well as a more favourable sales mix. Essentially, the company is selling more RealW8™ than lower margin products.
Operating expenses for Q1 2012 were $909,520 as compared to $1,272,120 for Q1 2011 and $1,003,724 for Q4 of 2011. This reduction in operating expenses was a result of management's strategic restructuring efforts to reduce overhead and improve efficiency.
Net comprehensive loss for Q1 2012 was $269,603 as compared to $983,484 for Q1 2011 and $1,029,964 for Q4 2011.
"We are very pleased with our financial performance in the first quarter of 2012," stated CEO Dan Lundell. "This Quarter was the first demonstrable evidence of the success of our 'Asantae 2.0' re-structuring and represents a turning point for Asantae. In January we officially launched our flagship weight loss product RealW8 and the adoption of this exciting product by our network of independent affiliates has exceeded our expectations. We are now well positioned for continued rapid growth and profitability."
Outlook for Second Quarter and Fiscal Year 2012:
Asantae re-iterates guidance for record revenues in fiscal 2012 and profitability in Q2 and beyond.
For additional commentary and analysis, please refer to the Company's Q1 Management Discussion and Analysis as filed on SEDAR on May 29, 2012.
Asantae Holdings International Inc. (www.asantae.com) is a producer and marketer of innovative nutritional products through a network of independent distributors (Asantae Independent Affiliates). Asantae's flagship product RealW8™ addresses the primary threat to public health in the industrialized world; overweight and obesity. Asantae's approach to this threat is based on a body of research related to the brain chemistry of addiction, chronic low-grade inflammation and oxidative stresses which, according to scientific and medical research, are the underlying conditions for most modern epidemic diseases (obesity, heart disease, diabetes, stroke, some cancers, etc.).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements - Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including the listing and trading of the Company's common shares on the Exchange. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release. The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward- looking information include, among others, the Company's ability to develop new products which will receive market acceptance, to receive market acceptance in new markets outside the United States, to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its intellectual property rights.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.For further information:
Asantae Holdings International Inc.
Dan Lundell, CEO/COO
10153 E Hampton Ave, Ste 101, Mesa, AZ, 85209 USA
Phone: 480-278-8712 / Fax: 480-383-6147
Sequoia Partners Inc.