MONTREAL, May 30, 2012 /CNW Telbec/ - Ranaz Corporation ("Ranaz") (TSXV: RNZ), a company specializing in the manufacturing and marketing of protein and dietary supplements, reported its results today for the first quarter ended March 31, 2012.
|Selected Consolidated Financial information per quarter ended March 31,|
|Adjusted operating earnings(1)||166,451||207,390|
|(1)||Refer to page 6 of the Management ,Discussion and Analysis for the reconciliation of the adjusted operating earnings|
Sales for the quarter ended March 31, 2012 totaled 3,9 millions dollars, 0,7 million dollars or 16.0 % lower than the sales of the first quarter of 2011. The principal explanation for the reduction of sales is related to the decrease of the export sales related to the difficult economy in Europe and the continuation of our rationalization program for customers with lower margin.
The introduction of new products during fiscal 2012, the arrival of new customers by the end of fiscal 2011, the establishment of a new marketing and promotional plan combined with a new direction in sales are promising elements for fiscal 2012
Gross profit totaled $1,078,583 for the quarter ended March 31, 2012, compared to $1,372,998 for the corresponding quarter of 2011, representing 27.5% and 29.4% of sales of each quarter. The Company continues to closely control the production costs and efforts to increase the level of productivity. However, the decrease in sales compared to fixed costs reduced the gross margin percentage. With the new business plan of the Company, the current structure is maintained to follow the anticipated growth.
The net loss for the three months period ended March 31, 2012 amounted to $42,719 or $0.001 per share, as compared to $29,742 or $0.001 per share for the first quarter of 2011.
The adjusted operating earnings for the quarter ended March 31, 2012 totaled $166,451 or $0,003 per share, as compared to $207,390 or $0,003 per share for the same quarter of last year.
Cash outflow for operating activities totaled $490,556 for the three months period ended March 31, 2012 as compared to cash inflow of $40,368 the corresponding period of 2011.
The changes in working capital are $599,186 for the first quarter of 2012 compared to $90,381 for the corresponding quarter of 2011. During this period of three months of 2012, these variations are due primarily to increase of trade and other receivables and inventories offset by an increase in trade and other payables. Inventories have increased since December 31, 2011 in order to have sufficient level in anticipation of the high season.
"We are pursuing the establishment of a more effectively sales and marketing strategy to meet further the needs of our markets and increase sales. We remain confident that this initiative along with our cost reduction programs, a more competitiveness in the markets, the continuation of our program of rationalization of low-margin products and the contribution of our new management team in sales will increase our results for 2012, "says Jean Bourassa-Marineau, President and CEO of Ranaz.
About Ranaz Corporation
Ranaz is a corporation specializing in the manufacture and sale of protein and dietary supplements. Its mission is to design, develop and market nutritional, protein and dietary supplements under its own corporate brands and concepts, such as Protidiet and ProtiLife, as well as under private labels.
Full information, including the management discussion and analysis and the financial statements thereto, is available on SEDAR, at www.sedar.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the accuracy of this release.
For further information:
Alain Lévesque, CA
Chief Financial Officer
(450) 491-7106, local 213
Jean Bourassa Marineau
President and CEO
(450) 491-7106, local 217