Ranaz reports 2011 third quarter and nine months results

  • Sustained profitability despite worldwide economic uncertainty and the Canadian dollar's strength

  • Adjusted operating earnings of $739,672 for the first nine months of 2011 as compared to $735,134 for the same period in 2010

  • Net earnings of $66,476 for the first nine months of 2011 compared to $110,971 to the corresponding period of 2010

MONTREAL, Nov. 29, 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 third quarter and nine-month period ended September 30, 2011.

Selected Consolidated Financial information for the nine-month period ended September 30, 2011
 
  2011 2010 Variation
Sales 13,457,381 13,524,990 (67,609)
Gross profit 4,047,377 4,266,519 (219,142)
Net earnings 66,476 110,971 (44,495)
Adjusted operating earnings  (1) 739,672 735,134 4,538
 
Selected Consolidated Financial information for the third quarter ended September 30, 2011
 
   2011 2010 Variation
Sales  4,039,728 4,184,227 (144,499)
Gross profit  1,169,500 1,257,589 (88,089)
Net earnings    20,130 170,549 (150,419)
Adjusted operating earnings (1)      221,003 310,530 (89,527)
 
(1) Refer to page 7 of  the Management  Discussion and Analysis for the reconciliation of the adjusted operating earnings

Sales for the third quarter of 2011 totalled $4.0 million as compared to $4.2 million in the same quarter of 2010, decreasing by $0.2 million or 3.5%. Sales for the first nine months of 2011 reached $13.5 million, a level similar to the same period of 2010. Sales stability resulted from both upward and downward factors. The addition of new client Protidiet and private label brand accounts was the key factor in maintaining sales levels similar to those of the same periods in 2010. Sales were however affected by the impact of a higher valued Canadian dollar as its average exchange rate for the US dollar during the first nine months of 2011 increased significantly by 6%. Adverse weather conditions in most major markets and a restrictive economic climate were also unfavourable to the sale of our products.

Gross profit amounted to $1.2 million for the third quarter of 2011 as compared to $1.3 million for the same quarter in 2010, representing 29.0% and 30.1% of sales respectively for these quarters. For the first nine months of 2011, gross profit was $4.0 million or 30.1% of sales compared to $4.3 million or 31.5 % of sales for the same period in 2010. The nominal gross margin percentage decrease for the first nine months of 2011 compared to 2010 was due to the negative effect of a stronger Canadian dollar and product sales and market mix changes.

Net earnings for the third quarter of 2011 amounted to $20,130, or $0.000 per share, compared to $170,549, or $0.003 per share for the same period last year. Net earnings for the first nine months of the current year totalled $66,476, or $0.001 per share, compared to $110,971, or $0.002 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 and worldwide economic uncertainty.

Adjusted operating earnings for the third quarter of 2011 were $221,003 and $739,672 for the first nine months of the current year, compared to $310,530 and $735,134 for the same periods of 2010.

Consolidated cash-flow

Cash flow from operating activities for the third quarters of 2011 and 2010 totalled respectively ($316,230) and ($330,829) while amounting to $121,218 and $708,766 respectively for the first nine months of 2011 and 2010.

Changes in non-cash from working capital items were $597,070 in the third quarter of 2011 as compared to $685,937 in the same quarter of last year. For the third quarter of 2011, these changes consisted mostly of decreases in trade and other payables partially offset by increases in accounts receivable. For the first nine months of 2011, changes in non-cash working capital items decreased cash flow by $653,716 as compared to $5,353 pour same period of last year. The changes for the first nine months of this year result largely from inventory increases.

"The continued strength of the Canadian dollar, weakened American and European markets, adverse weather conditions and a restrictive economic climate unfavourable to the sale of our products count among the many factors which impacted our performance. Nonetheless, thanks in part to the addition of new customer accounts and continued cost control and streamlining measures, we sustained profitability. Moreover, substantial new product development efforts since the beginning of the year to better answer specific market needs are starting to pay off. Positive market response during initial new product promotional launches late in the third quarter bodes well for the increase in our customer base during the coming months. Furthermore, we continue to improve efficiencies and remain confident in our capacity to improve results", 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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