- Sales up 63% in the fourth quarter and for fiscal 2008 overall
- Sales of Protidiet higher in all markets
- Transfer of nutritional bar production to St-Eustache
- Product recall
MONTREAL, April 28 /CNW Telbec/ - Ranaz Corporation ("Ranaz") (TSX-V:
RNZ), a company specialized in the manufacturing and marketing of protein and
dietary supplements, reported its results today for the fourth quarter and
fiscal year ended December 31, 2008.
Sales were $4.9 million for the fourth quarter and $20.8 million for the
fiscal year ended December 31, 2008, compared to $3 million and $12.8 million
for the same periods in 2007. This represented an increase of 63% for the
fourth quarter and for the year, primarily attributable to the acquisition of
BarTech and higher Protidiet sales on all markets.
The adjusted operating loss was $415,000 for the fourth quarter of 2008
and $2.2 million for the year as a whole, compared to $1.4 million and $3.6
million for the same periods last year, for respective decreases of 70.4% and
39.9%. The improvement in the adjusted operating loss was primarily due to
higher gross profit, net of expenses related to the product recall, lay-off
expenses and increases in depreciation, amortization and interest charges.
The net loss amounted to $1.3 million or $0.034 per share for the fourth
quarter and $3.8 million or $0.099 per share for fiscal 2008, compared to $1.6
million or $0.046 per share and $4.3 million or $0.139 per share for the same
periods the previous year.
Results were negatively affected by a product recall in the fourth
quarter. On December 31, 2008, management determined that direct,
non-recurring costs related to the product recall would total approximately
$800,000, and that this amount would be recognized in the results for fiscal
2008. These charges do not account for a $130,000 negative impact on gross
profit arising from the cancellation of some sales of recalled products. It
should be noted that the recall was preventive only, and that none of the
recalled Ranaz bars contained salmonella. The basic ingredient targeted by the
recall is not used in Ranaz bars.
"Despite the challenging economic climate, the Company increased its
revenues and decreased its adjusted operating loss," said Jean
Bourassa-Marineau, President and Founder of Ranaz. "Furthermore, postponing
the American launch of ProtiLife due to the threat of an economic slowdown, as
announced at our 2007 annual meeting, proved to be a wise decision. We have
since directed our efforts at growing Protidient sales in all our markets,
developing a new Canadian marketing plan for ProtiLife that requires less
investment, and generates higher earnings in the short term and to
repatriating our nutritional bar manufacturing to Canada."
"The installation of nutritional bar production facilities took place on
schedule and on budget, enabling us to save nearly $500,000 annually in
manufacturing operating costs. In addition, the new marketing plan for
Protilife in Canada for 2009 is already generating results, with sales up
substantially in the first quarter. Meanwhile, first quarter sales of
Protidiet indicate sustained growth in all markets in 2009. We have also
implemented a strict cost reduction plan that should allow us, based on our
actual estimates, to reduce sales and administration expenses by over $2
million in 2009 relative to 2008. Finally, we have adopted a management method
tailored to the current economic situation, with an emphasis on tight control
of all items affecting working capital," added Mr. Bourassa-Marineau.
Full results including the management discussion and analysis, financial
statements and notes, will be available on SEDAR at www.sedar.com.
"Despite the unstable economic climate, we expect 2009 to be rich with
challenges and opportunities for Ranaz," added Mr. Bourassa-Marineau. "We
expect sales of ProtiLife to grow steadily in the Canadian market, Protidiet
to continue to contribute to the Company's success, and the transfer of
nutritional bar manufacturing activities to our plant in St-Eustache to allow
us to improve our productivity in this area."
About Ranaz Corporation
Ranaz is a corporation specializing in the manufacture and sale of
protein and dietary supplements. Its mission is to create, develop and sell
nutritional, protein and dietary supplements under its own corporate brands,
such as "Protidiet" and "Protilife", as well as under private brands.
Certain statements contained in this news release, other than statements
of fact that are independently verifiable at the date hereof, may constitute
forward-looking statements. Such statements, based as they are on the current
expectations of management, inherently involve numerous risks and
uncertainties, known and unknown, many of which are beyond Ranaz's control. In
particular, such risks include: the impact of general economic conditions,
changes in the regulatory environment in the jurisdictions in which Ranaz does
business, stock market volatility, fluctuations in costs, and changes to the
competitive environment due to consolidation, as well as other risks disclosed
in public filings of Ranaz. Consequently, actual results may differ materially
from the anticipated results expressed in the forward-looking statements. The
reader should not place undue reliance, if any, on the forward-looking
statements in this news release. These statements speak only as of the date
made and Ranaz is under no obligation and disavows any intention to update or
revise such statements as a result of any event, circumstances or otherwise.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Martin Vidal, Executive Vice President &
Financial Chief Officer, Ranaz Corporation, (450) 491-7106, poste 213,
firstname.lastname@example.org; Jean-François Bouffard, Vice President,
Investor's relations, Groupe Evolution inc., (514) 448-4887, 1-866-703-4887,