Ranaz reports fourth quarter and fiscal 2010 results

   Return to profitability:

  • Net earnings of $136,000 for 2010 compared to a net loss of $773,000 for 2009
  • Adjusted operating earnings of $928,000 for 2010 compared to an adjusted operating loss of $590,000 for 2009

MONTREAL, April 27 /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 fourth quarter and fiscal year ended December 31, 2010.

Selected Consolidated Financial information per year
  2010 2009 Variation
Sales 17,890,000 19,088,000 (1,198,000)
Gross profit 5,614,000 4,963,000 651,000
Net earnings (loss) 136,000 (773,000) 909,000
Adjusted operating earnings
(adjusted operating loss) (1)
928,000 (590,000) 1,518,000

(1) Refer to page 6 of the Management Discussion and Analysis for the reconciliation of the adjusted operating earnings (adjusted operating loss)

Sales reached $4.4 million for the fourth quarter and $17.9 million for 2010, a decrease of 2.2% and 6.3% respectively as compared to $4.5 million and $19.1 million for the same periods in 2009. The decrease is mainly due to the Canadian dollar's higher value against the US dollar and the Euro. The rationalization of low margin products started in 2009 resulted in lessening private label bar line sales with an ensuing temporary negative effect on overall sales. However, the situation helped to improve gross margin. Sales for the key Protidiet product line increased compared to 2009 due to higher demand in the United States and Canada.

Gross profit was $1,347,000 for the fourth quarter and $5,614,000 for the year compared to $1,103,000 and $4,963,000 for the same periods in 2009. Gross profit in the last quarter of 2010 represented 30.9% of sales versus 24.8% for the same quarter in 2009 and 31.4% in 2010 versus 26.0% in 2009.

Adjusted operating earnings amounted to $192,000 for the fourth quarter and $928,000 for fiscal 2010 as compared to the adjusted operating loss of $125,000 and $590,000 for the same periods in the preceding year. The variation of the adjusted operating earnings versus the adjusted operating loss represents a marked increase of 257.3% in 2010.

Net earnings totalled $136,000, or $0.002 per share, for fiscal 2010 compared to a net loss of $773,000, or $0.015 per share, for 2009. A net loss of $14,000, or $0.0001 per share, was registered for the fourth quarter of 2010 compared to the net loss of $251,000, or $0.0070 per share, for the same quarter in 2009.

"The return to profitability attests to the soundness of the measures implemented during the last few years. Consolidation of our production activities has enabled us to achieve greater manufacturing efficiencies. The low margin product rationalization program as well as higher productivity and tightened cost control throughout the company have greatly helped to improve margins. Moreover, we strengthened the company's management team during the year with the appointment of three top professionals to the key functions of Vice-President, Sales and Marketing, Vice-President, Finance and Administration and Director, Manufacturing Operations", stated Jean Bourassa-Marineau, President and founder of Ranaz.

Outlook

"As economic conditions improve and demand for our products continues to grow stronger, we are currently implementing a more efficient sales and marketing strategy to better respond to market needs and increase sales. We are confident this initiative combined with on-going cost control and streamlining programs, greater competitiveness on international markets and the impact of our new management team will improve overall results for the current year", concluded Mr. Bourassa-Marineau.

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

 

Profil de l'entreprise

Ranaz Corporation

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