Sun-Rype Reports 2012 Financial Results

TSX: SRF

KELOWNA, BC, March 6, 2013 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) ("Sun-Rype" or the "Company") today released its financial results for the fourth quarter and year ended December 31, 2012.

Financial Highlights

Sun-Rype's net sales in 2012 were $152.8 million compared to $147.5 million in 2011. The Company's net income in 2012 was $1.3 million or $0.13 per share, compared to net loss of ($5.7 million) or ($0.53) per share in 2011. In the third quarter of 2011, the Company acquired the business and assets of Naumes Concentrates, Inc. (the "Naumes acquisition"). This acquired operation recorded net sales of $13.1 million in 2012 compared to 2011 net sales from date of acquisition of $4.8 million.

"The increase in Sun-Rype's net sales in 2012 is due primarily to a 2011 business acquisition resulting in increased non-branded sales.  The increase in gross profit was primarily due to these higher sales and lower operating expenses.  Sun-Rype experienced increased results from operating activities in 2012 of $10.1 million from increased gross profit and lower marketing, general and administrative expenditures resulting in increased net income by $7.0 million as compared to 2011", commented Dave McAnerney, President & CEO.  "Net sales of branded beverages in 2012 were $79.7 million, 7% lower than in 2011, on 8% lower volume.  Net sales of branded food products in 2012 were $30.9 million, 9% lower than in 2011 on 12% lower volume."

The accompanying financial information has been prepared under International Financial Reporting Standards ("IFRS"). An explanation of how the transition to IFRS has affected the financial position, financial performance and cash flows of the Company is included in the notes to the consolidated financial statements for the year ended December 31, 2012 and 2011. Amounts for 2011 included herein reflect amounts determined under IFRS, unless otherwise stated.

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, 2011, 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", "projects", "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.

Sun-Rype Products Ltd.
Consolidated Statements of Comprehensive Income
For the Years ended December 31
(in thousands of Canadian dollars, except per share amounts)
           
           
  2012   2011
             
Net sales $ 152,795   $ 147,529
  Cost of sales   (125,474)     (126,311)
Gross profit   27,321     21,218
             
  Sales and marketing expenses   (11,699)     (14,721)
  Distribution expenses   (6,813)     (7,352)
  General and administrative expenses   (5,987)     (6,410)
  Loss on disposal of property, plant and equipment   -     (57)
Results from operating activities   2,822     (7,322)
             
  Finance costs   (708)     (714)
Income (loss) before income tax   2,114     (8,036)
             
  Income tax recovery (expense)   (847)     2,349
Net income (loss) for the year   1,267     (5,687)
             
Other comprehensive income (loss)          
             
  Foreign currency translation differences for foreign operations   (13)     (53)
Total comprehensive income (loss) for the year $  1,254   $ (5,740)
           
           
Basic and diluted earnings (loss) per share (in dollars) $ 0.12   $ (0.53)
             
     
     
     

 

 

 

SOURCE: Sun-Rype Products Ltd.

For further information:

Amanda Burns, CA
Vice President, Finance & CFO
Sun-Rype Products Ltd.
1165 Ethel Street
Kelowna, BC  V1Y 2W4
Tel:  (250) 860-6570
Fax: (250) 762-3611
cfo@sunrype.com

or

Dave McAnerney
President & Chief Executive Officer
Sun-Rype Products Ltd.
1165 Ethel Street
Kelowna, BC  V1Y 2W4
Tel: (250) 860-7973
Fax: (250) 762-3611
ceo@sunrype.com

www.sunrype.com


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