EDMONTON, Oct. 28 /CNW/ - Planet Organic Health Corp (TSX Venture Exchange - POH), Canada's leading natural products retailer announces their financial results for the year ended June 30, 2009. Sales for the year ended June 30, 2009 were $127.7 million compared to $113.9 million in 2008, an increase of $13.8 million, or 12.1%.
The Planet Organic Market division, operating in ten locations in Canada, showed same store sales growth for the year ended June 30, 2009 of 5.4%. Total overall sales growth this year was 11.3%, with sales climbing to $61.0 million.
The Mrs. Green's Natural Market division, operating in eleven US locations, showed same store sales growth of 1.3% for the year ended June 30, 2009, excluding the impact of foreign exchange translation differences from last year. In Canadian currency, the Mrs. Green's division saw reported sales increase 18.0% to $51.7 million.
As the two largest divisions, Planet Organic Market and Mrs. Green's Natural Market account for approximately 88% of total consolidated revenue. "We are glad to report that same store sales growth in our two largest divisions was positive this past year, despite the tough economic conditions both in Canada and the United States" reports Darren Krissie, Executive Vice President, Business Development and co-CEO, adding that "while certainly the rate of growth in both these divisions has declined, the fact we've been able to keep positive is a strong achievement."
Summary of key Fiscal 2009 financial results (in thousands of dollars)
Fiscal 2009 Fiscal 2008
Sales $127,665 $113,973
Cost of goods sold $78,248 $68,725
Gross profit $49,417 $45,248
Operating expenses $53,743 $45,667
EBITDASX $6,011 $7,096
Income (loss) before tax ($3,278) $530
Income tax $29 $758
Net loss ($3,307) ($228)
Cash flow from operations $4,494 $3,606
EBITDASX for the year was $6.0 million, down 15%, or $1.1 million from last year. The decrease was driven primarily by new store openings which reported negative EBITDASX for the year. Cash flow from operations in 2009 increased by $0.9 million, or 24.6%, from 2008, totaling $4.5 million. Cash from operations has almost quadrupled from two years ago. Pre-tax losses were primarily driven by a foreign exchange loss of $2.3 million (which is a non cash charge) on conversion of U.S. denominated debt and accrued interest on the senior convertible notes payable. Additionally, with the depreciation of the Canadian dollar against the US dollar for much of the year, the Company incurred additional interest expense on long-term debt.
"Despite the losses, Planet continues to be confident in its position and ability to capitalize when the economy recovers" stated Krissie. Furthermore, Krissie noted that "with forbearance agreements now in place, Planet continues to work closely with its lenders towards achieving resolution of the covenant breaches to assure Planet's position as a leading organic and natural products retailer. We continue to review all aspects of the business to make Planet a leaner, stronger company."
EBITDASX reported above is a non-GAAP measure and is earnings before interest, taxes, depreciation, amortization, stock-based compensation and foreign currency translation.
For further financial information and a copy of our annual report, please visit our corporate website at www.planetorganichealthcorp.com
About Planet Organic Health Corp.
Planet Organic Health Corp. (TSX-V: POH) is a natural products industry company, comprising manufacturing, distribution and retail. Planet Organic is listed on the TSX Venture Exchange as a Tier One company. Planet Organic operates ten natural food supermarkets throughout Canada under the Planet Organic Market banner and eleven natural food supermarkets in the U.S. under the Mrs Green's Natural Markets banner. The Company also operates 43 natural health outlets under the Sangster's Health Centre banner and seven natural health outlets under the Healthy's and Planet Organic Living banners. Another Planet Organic division, Trophic Canada, is the country's leading manufacturer of natural supplements. The Company has a total of 60 stores throughout Canada and eleven in the U.S. and has more than 650 employees.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Certain information included herein is forward-looking. Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Planet. Many of these statements can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues", or similar words and include but are not limited to, statements regarding the accretive effects of the acquisition and the anticipated results and expected benefits of the acquisition upon closing thereof. Planet Organic believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in Planet Organic's continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and other factors, which may cause Planet Organic's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; changes in environmental and other regulations; and other factors, many of which are beyond the control of Planet Organic. Any forward-looking statements are made as of the date hereof and Planet Organic does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.
SOURCE PLANET ORGANIC HEALTH CORP.
For further information: For further information: Planet Organic Health Corp., Darren Krissie, Executive VP Business Development, (780) 719-4667