Sun-Rype reports Q3 2007 financial results



    TSX: SRF

    KELOWNA, BC, Nov. 6 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) today
released its financial results for the third quarter ended September 30, 2007.

    Financial Highlights

    Sun-Rype's net sales for the third quarter of 2007 were $35.4 million, an
increase of $3.2 million or 9.8% over the same quarter in 2006. For the nine
months ended September 30, 2007, the Company's net sales were $108.0 million,
an increase of $10.7 million or 11.0% over the same period in 2006.
    "Growth in net sales was offset by increased cost of sales", says Eric
Sorensen, President and Chief Executive Officer. "Raw material commodity
prices continue to escalate and remain a challenge as we continue to work to
mitigate these costs."
    The Company's net earnings for the third quarter of 2007 were
$1.1 million or $0.11 per share, compared to $1.9 million or $0.17 per share
in 2006. For the nine months ended September 30, 2007, the Company's net
earnings were $4.8 million or $0.45 per share, compared to $6.1 million or
$0.56 per share for the same period in 2006. The increase in net sales during
the period was offset by increases in cost of sales and foreign exchange loss
compared to the same period in 2006.
    On November 6, 2007, the Company declared a quarterly dividend of
$0.04 per common share, for a total of approximately $433,000, payable on
December 15, 2007, to shareholders of record at the close of business on
November 30, 2007.

    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 period ended September 30, 2007, 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, 2007,
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 EARNINGS AND RETAINED EARNINGS
             (in thousands of dollars except per share amounts)
                                 (Unaudited)

                                Three months ended       Nine months ended
                                   September 30            September 30
                              ----------------------- -----------------------
                                 2007        2006        2007        2006
                              ----------- ----------- ----------- -----------
    Net sales                 $   35,416  $   32,247  $  108,041  $   97,364
    Cost of sales                 24,883      21,607      73,493      63,577
                              ----------- ----------- ----------- -----------

    Gross profit                  10,533      10,640      34,548      33,787
                              ----------- ----------- ----------- -----------

    Selling, general and
     administrative expenses       6,630       6,972      22,089      22,027
    Amortization                   1,040         944       3,002       2,869
    Interest expense                  75          12         123          31
    Loss on disposal of
     property, plant and
     equipment                         -          52          29          74
    Foreign exchange loss
     (gain)                        1,070        (174)      2,035        (110)
                              ----------- ----------- ----------- -----------

                                   8,815       7,806      27,278      24,891
                              ----------- ----------- ----------- -----------

    Earnings before income
     taxes                         1,718       2,834       7,270       8,896

    Income taxes                     589         936       2,442       2,796
                              ----------- ----------- ----------- -----------

    Net earnings                   1,129       1,898       4,828       6,100


    Retained earnings,
     beginning of period          22,254      16,896      19,310      29,585
    Dividends paid                  (433)       (325)     (1,188)    (17,216)
                              ----------- ----------- ----------- -----------
    Retained earnings,
     end of period            $   22,950  $   18,469  $   22,950  $   18,469
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Per share information
      Basic and diluted
       earnings per share     $     0.11  $     0.17  $     0.45  $     0.56
      Dividends per share           0.04        0.03        0.11        1.59
    

    %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 Eric Sorensen, 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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