Ranaz reports 2011 second quarter and half-year results

  • Adjusted operating earnings for the first six months bettered by 21%, from $424,604 in 2010 to $514,098 this year
  • Net earnings turnaround for the half-year of 178%, from a net loss of ($59,578) in 2010 to net earnings of $46,346 in 2011

MONTREAL, Sept. 1, 2011 /CNW Telbec/ - Ranaz Corporation ("Ranaz") (TSXV: RNZ), a company specializing in the manufacturing and marketing of protein and dietary supplements, reported its results today for the second quarter and half-year ended June 30, 2011.


Selected Consolidated Financial information for the six-month period ended June 30, 2011
  2011 2010 Variation
Sales 9,417,653 9,340,763 76,890
Gross profit 2,877,877 3,008,930 (131,053)
Net earnings (loss) 46,346 (59,578) 105,924
Adjusted operating earnings (1) 514,098 424,604 89,494
 
Selected Consolidated Financial information for the second quarter ended June 30, 2011
  2011 2010 Variation
Sales 4,751,818 5,147,814 (395,996)
Gross profit 1,441,154 1,809,762 (368,608)
Net earnings 76,088 384,348 (308,260)
Adjusted operating earnings (1) 336,747 571,902 (235,155)
  (1) Refer to page 6 of the Management  Discussion and Analysis for the reconciliation of the adjusted operating earnings

Sales for the second quarter of 2011 totalled $4.8 million as compared to $5.1 million in the same quarter of 2010, decreasing by $0.3 million, or 7.7%. Sales for the first six months of 2011 reached $9.4 million, up $0.1 million over the same period of 2010. The sales increase was mainly due to the addition of new client accounts in 2011. This improvement was however affected by the negative impact of a higher valued Canadian dollar and the bad weather conditions in most major markets and a restrictive economic climate.

Gross profit amounted to $1.4 million for the three-month period ended June 30, 2011 as compared to $1.8 million for the same quarter in 2010, representing 30.3% and 35.2% of sales respectively for these quarters. For the first six months of 2011, gross profit was $2.9 million or 30.6% of sales compared to $3.0 million or 32.2 % of sales for the same period in 2010. The nominal gross margin percentage decrease for the first half of 2011 compared to 2010 was due to the negative impact of a stronger Canadian dollar and product sales and market mix changes.

Net earnings for the first half-year of 2011 amounted to $46,346, or $0.001 per share, compared to a net loss of ($59,578), or ($0.001) per share for the same period last year, representing an increase of 178%. The turnaround was mainly attributable to continued tightened cost controls and the one time termination compensation in 2010. Net earnings for the second quarter of 2011 amounted to $76,088, or $0.001 per share, compared to $384,348, or $0.006 per share, for the same period in 2010. The net earnings decrease largely results from the adverse effect of the Canadian dollar's greater appreciation.

Adjusted operating earnings for the second quarter of 2011 were $336,747 and $514,098 for the first half of 2011, compared to $571,902 and $424,604 for the same periods of 2010.

Consolidated cash-flow

Cash flow from operating activities totalled $341,203 for the second quarter of this year and $437,448 for the first half of 2011, compared to $768,088 and $1,039,595 in the corresponding three-month and six-month periods of 2010.

Changes in non-cash from working capital items were $33,735 in the second quarter of 2011 as compared to $194,150 in the same quarter of last year. For the second quarter of 2011, these changes consisted mostly of increases in accounts payable and accrued liabilities partially offset by increases in accounts receivable.

For the first six months of 2011 and 2010, changes in non-cash working capital items decreased cash flow by $56,646 and increased it by $680,584 respectively. For the first six months of this year, these changes consisted primarily of increases in accounts receivable and inventories partially offset by increases in accounts payable and accrued liabilities.

"New client account sales development efforts are starting to pay off as their sales levels improve. Overall sales were however adversely affected by a significant appreciation of the Canadian dollar, as well as by first half-year bad weather conditions in most major markets and a restrictive economic climate which were unfavourable to the sale of our products. We remain confident that the on-going implementation of our new sales and marketing approach to better respond to market needs along with continued cost control and streamlining measures, greater international market competiveness and the impact of our new management team will improve overall results during the next years," stated Jean Bourassa-Marineau, President and CEO of Ranaz.

About Ranaz Corporation

Ranaz is a corporation specializing in the manufacture and sale of protein and dietary supplements. Its mission is to design, develop and market nutritional, protein and dietary supplements under its own corporate brands and concepts, such as Protidiet and ProtiLife, as well as under private labels.

Full information, including the management discussion and analysis and the financial statements thereto, is available on SEDAR, at www.sedar.com

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 accuracy of this release. 

SOURCE Ranaz Corporation

For further information:

Ranaz Corporation   
Alain Lévesque, CA
Chief Financial Officer
(450) 491-7106, local 213   
Ranaz Corporation        
Jean Bourassa-Marineau
President and CEO
(450) 491-7106, local 217

 

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Ranaz Corporation

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