Sun-Rype reports 2008 financial results



    TSX:  SRF

    KELOWNA, BC, Feb. 26 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) today
released its financial results for the fourth quarter and year ended December
31, 2008.

    Financial Highlights

    Sun-Rype's net sales in 2008 were $125.4 million, a decrease of $9.8
million from 2007. The Company had a net loss in 2008 of $11.7 million or
$1.08 per share, compared to net earnings of $4.6 million or $0.43 per share
at year-end 2007.
    Sun-Rype's 2008 fourth quarter net sales were $33.4 million, compared to
$27.1 million for the fourth quarter of 2007, an increase of 23%. This is the
highest level of fourth quarter sales ever reported by the Company. Gross
profit for the fourth quarter of 2008 was $2.3 million lower than the same
period in 2007.
    "While 2008 was a very difficult year for Sun-Rype from a profitability
perspective, we are pleased with the sales results for the second half of the
year," says David Lynn, President & CEO of Sun-Rype Products Ltd. "Moreover,
we are confident that our sales momentum, coupled with reductions in overhead
and commodity costs, positions us for improved financial results in 2009."
    In February 2009 the Company entered into a management services agreement
with a related Company under which Sun-Rype will receive selected corporate
services. The Company expects to realize certain costs savings under this
agreement.
    Sun-Rype Products Ltd., based in Kelowna, BC, is a manufacturer and
marketer of 100% fruit snacks and juices under the Sun-Rype brand. 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, financial statements and accompanying notes of Sun-Rype Products
Ltd. for the year ended December 31, 2008, 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", "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 February 26, 2009,
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.
              Statements of Operations and Comprehensive Income
                       For the years ended December 31
             (in thousands of dollars, except per share amounts)


                                                         2008           2007
                                                   -----------   ------------
                                                   -----------   ------------

    Net sales                                       $ 125,368      $ 135,134
    Cost of sales                                     111,277         93,298
                                                   -----------   ------------
    Gross profit                                       14,091         41,836
                                                   -----------   ------------

    Expenses
    Selling, general, and administrative               29,053         28,538
    Amortization                                        2,288          4,186
    Interest                                              879            148
    Loss on disposal of property,
     plant and equipment                                    -            213
    Foreign exchange loss                                   -          1,977
                                                   -----------   ------------
                                                       32,220         35,062
                                                   -----------   ------------

    Earnings (loss) before income taxes               (18,129)         6,774

    Income taxes                                       (6,456)         2,138
                                                   -----------   ------------

    Net earnings (loss) and
     comprehensive income (loss)                    $ (11,673)     $   4,636
                                                   -----------   ------------
                                                   -----------   ------------


    Earnings (loss) per share
      Basic and diluted                             $   (1.08)     $    0.43
                                                   -----------   ------------
                                                   -----------   ------------
    

    %SEDAR: 00001572E




For further information:

For further information: David Lynn, 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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