Sun-Rype reports Q2 2008 financial results



    TSX: SRF

    KELOWNA, BC, Aug. 1 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) today
released its financial results for the quarter ended June 30, 2008.

    Financial Highlights

    Sun-Rype's net sales in the second quarter of 2008 were $33.1 million,
compared to $35.0 million in the same period in 2007. The Company had a net
loss in the second quarter of 2008 of $5.1 million or $0.47 per share,
compared to net earnings of $1.2 million or $0.11 per share in the second
quarter of 2007.
    Sun-Rype's net sales for the six-month period ended June 30, 2008, were
$54.5 million, compared to $72.6 million in the same period in 2007. The
Company had a net loss for the six-month period ended June 30, 2008, of
$9.3 million or $0.86 per share, compared to net earnings of $3.7 million or
$0.34 per share for the six-month period ended June 30, 2007.
    "Higher raw material and distribution costs, limitations on available
product, higher labour rates, and the lingering effects of the fifteen-week
labour disruption that ended in February 2008 are the main contributors to the
losses in 2008," says Dave McAnerney, Interim President and Chief Executive
Officer. "However, I am very pleased to report that sales of Sun-Rype's
1.36 litre beverage products, launched in the first quarter of 2008, have been
strong as customers and consumers embrace their familiar Sun-Rype beverage
products in this new packaging format. In addition, late in the second quarter
2008, we launched Sun-Rype branded food products in the United States."
    Since the conclusion of the labour disruption, the Company has been
actively rebuilding inventory to re-establish customer service levels and
market share. Promotional activities will continue to build in the third
quarter before returning to historical levels in the fourth quarter of 2008.
The Company anticipates a loss in the third quarter of 2008.

    Sun-Rype Products Ltd., based in Kelowna, BC, is a manufacturer and
marketer of 100% juices and 100% fruit snacks 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 interim period ended June 30, 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 28, 2008,
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
             (in thousands of dollars except per share amounts)
                                 (Unaudited)

                                    Three months ended     Six months ended
                                          June 30               June 30
                                  --------------------- ---------------------
                                      2008       2007       2008       2007
                                  ---------- ---------- ---------- ----------

    Net sales                      $ 33,088   $ 35,046   $ 54,474   $ 72,625
    Cost of sales                    30,831     24,384     51,377     48,610
                                  ---------- ---------- ---------- ----------
    Gross profit                      2,257     10,662      3,097     24,015
                                  ---------- ---------- ---------- ----------

    Selling, general and
     administrative expenses          9,498      6,977     16,574     15,459
    Amortization                        299        980      1,063      1,962
    Interest                            190         39        247         48
    Foreign exchange loss (gain)         99        806       (306)       965
    Loss on disposal of property,
     plant and equipment                  -         13          -         29
                                  ---------- ---------- ---------- ----------
                                     10,086      8,815     17,578     18,463
                                  ---------- ---------- ---------- ----------

    Earnings (loss) before
     income taxes                    (7,829)     1,847    (14,481)     5,552
    Income tax expense (recovery)    (2,747)       626     (5,203)     1,853
    Net earnings (loss) and
     comprehensive income (loss)   $ (5,082)  $  1,221   $ (9,278)  $  3,699
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Earnings (loss) per share
      Basic and diluted            $  (0.47)  $   0.11   $  (0.86)  $   0.34
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
    

    %SEDAR: 00001572E




For further information:

For further information: Gary Pearson, Chief Financial Officer, 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, Interim 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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