Sun-rype Reports Q1 2013 Financial Results

TSX:  SRF

KELOWNA, BC, May 9, 2013 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) ("Sun-Rype" or the "Company") today released its financial results for the quarter ended March 30, 2013.

Financial Highlights

Sun-Rype's net sales in the first quarter of 2013 were $36.6 million compared to $39.0 million in the first quarter of 2012. The Company's net income in the first quarter of 2013 was $0.5 million or $0.05 per share, compared to net income of $1.4 million or $0.13 per share in the first quarter of 2012.

"The decrease in Sun-Rype's net sales in the first quarter of 2013 was due primarily to decreased branded sales as compared to the same period last year," commented Dave McAnerney, President & CEO. "Gross profit decreased by $0.3 million primarily related to lower net sales, production overhead costs, distribution costs, raw material costs and increased production efficiencies. Net Income decreased due to lower gross profit, increased selling expenses, and a one-time charge to general and administrative expenses of approximately $0.6 million on an after tax basis."

Outlook

Despite reporting net income in 2012 and the first quarter of 2013 after incurring a net loss in 2011, the Company continues to face challenges.  Market data indicates that sales in the shelf-stable juice category, in which the Company derives approximately 60% of its net sales, have been softening.  It is unclear whether these declines will continue.  Strong competitive pressures experienced on branded products in 2012 and the current year are anticipated to continue.  The prices of certain concentrates and apples are returning to historical averages, but price volatility is anticipated moving forward.

The Company is continuing to focus on launching innovative products and broadening geographic distribution of its products to mitigate the challenges described.  Increased product development and launch costs are expected in 2013, and there is no certainty that the incremental sales from these products will exceed costs.

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, 2012, 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 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.

www.sunrype.com

Sun-Rype Products Ltd.
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
(in thousands of Canadian dollars, except per share amounts)
       
      For the quarters ended
      March 30, 2013 March 31, 2012
Net sales           $  36,643       $  39,021
       Cost of sales     (29.403) (31,527)
Gross profit     7,240 7,494
         
       Sales and marketing expenses     (2,811) (2,099)
       Distribution expenses     (1,636) (1,925)
       General and administrative expenses     (1,947) (1,291)
Results from operating activities     846 2,179
       Finance costs     (140) (229)
Income before income tax     706 1,950
       Income tax expense     (177) (509)
Net income for the period 529 1,441
Other comprehensive income (loss)                 
       Foreign currency translation differences for foreign operations 53 (14)
Total comprehensive income for the period $ 582 $ 1,427
         
Basic and diluted earnings per share $ 0.05 $ 0.13

 

 

 

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) 860-7973
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


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