KELOWNA, BC, May 31 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) ("Sun-Rype" or the "Company") today released its financial results for the quarter ended March 26, 2011.

Financial Highlights

Sun-Rype's net sales in the quarter ended March 26, 2011, were $35.5 million, $1.0 million or 3% higher than the same period in 2010. The Company's net income in the first quarter of 2011 was $0.4 million or $0.04 per share, compared to $0.3 million or $0.03 per share in the first quarter of 2010. In the fourth quarter of 2010, the Company acquired the business and assets of Yakama Juice, LLC (the "Yakama acquisition"). Net sales from the Yakama acquisition totalled $4.5 million in the first quarter of 2011. As this acquisition was completed in the fourth quarter of 2010, there are no sales in the comparable first quarter of 2010.

"Lower sales of Sun-Rype's branded products offset by growing non-branded sales impacted net sales in the first quarter of 2011," says Dave McAnerney, President & CEO. "Higher cost of goods sold due to rising commodity prices led to reduced gross profit in the first quarter of 2011 compared to the same period of 2010. Lower operating expenses offset the decline in gross profit resulting in $0.2 million higher income from operating activities in the first quarter of 2011 compared to the first quarter of 2010."

The interim consolidated financial statements are the Company's first financial statements that have been prepared under International Financial Reporting Standards ("IFRS"). The comparative figures for the first quarter of 2010, previously reported under previous Canadian generally accepted accounting principles have been restated to reflect IFRS. An explanation of how the transition to IFRS has affected the financial position, financial performance and cash flows of the Company is included in note 4 to the condensed consolidated financial statements for the quarter ended March 26, 2011.


During 2011 the Company will continue to focus on launching innovative products and broadening geographic distribution of its products. The strong competitive pressures seen in 2010 are expected to continue in 2011.

Prices of certain juice concentrates are expected to remain at near record levels through 2011. Prices of apples harvested from the 2010 crop have increased significantly. To mitigate the impact of these commodity price increases, the Company is adjusting selling prices on selected products. It is unclear what effect, if any, this will have on sales volumes in 2011.

The Company has launched new products in 2011. There is no certainty that the incremental revenue from these new products will exceed the product and launch costs incurred in 2011.

Management anticipates that these factors may result in net losses in the second and third quarters of 2011.

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. The full first quarter interim management's discussion and analysis, condensed consolidated financial statements and accompanying notes of Sun-Rype Products Ltd. for the period ended March 26, 2011, are available on the Canadian Securities Administrator's website at and on the Company's website at 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 and on the Company's website at

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 18, 2011, 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.

          Condensed Consolidated Statements of Comprehensive Income


                     (in thousands of Canadian dollars)

                                                     For the quarters ended
                                                     March 26,     March 27,
                                                        2011          2010

    Net sales                                      $    35,499   $    34,465
    Cost of sales                                      (28,165)      (26,188)
    Gross profit                                         7,334         8,277

      Sales and marketing expenses                      (3,335)       (4,530)
      Distribution expenses                             (2,052)       (1,704)
      General and administrative expenses               (1,234)       (1,563)
    Results from operating activities                      713           480

      Borrowing costs                                     (142)          (37)
    Income before income tax                               571           443

      Income tax expense                                  (155)         (119)

    Net income and comprehensive income
     for the period                                $       416   $       324

    Earnings per share
      Basic and diluted earnings per share
       (in dollars)                                $      0.04   $      0.03

SOURCE Sun-Rype Products Ltd.

For further information: Don VanderZwaag, CA, Chief Financial Officer, Sun-Rype Products Ltd., 1165 Ethel Street, Kelowna, BC, V1Y 2W4, Tel: (250) 860-7973, Fax: (250) 762-3611,; or Dave McAnerney, Chief Executive Officer, Sun-Rype Products Ltd., 1165 Ethel Street, Kelowna, BC, V1Y 2W4, Tel: (250) 860-7973, Fax: (250) 762-3611,,


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