- Sales growth exceeding 35% compared to the second quarter of 2006
- Substantial penetration of the new ProtiLife product line and strong
sequential sales acceleration continuing into the third quarter
- $0.035 loss per share related to a major investment in the ProtiLife
launch, compared to $0.002 in the second quarter of 2006
MONTREAL, Aug. 29 /CNW Telbec/ - Ranaz Corporation (TSXV: RNZ) ("Ranaz"
or the "Corporation"), a company specializing in the manufacturing and
marketing of protein and dietary supplements for weight loss and obesity
treatment, released its results today for the second quarter ended June 30,
"We are very pleased to see sales of our ProtiLife line developing
rapidly thanks to the many marketing agreements concluded since the beginning
of this year," stated Ranaz President and founder Jean Bourassa-Marineau. "We
are delighted with ProtiLife's success and its acceptance by a growing
audience across Canada. The line is being offered through sales networks that
have been steadily growing in number since ProtiLife was launched in late
March. In the third quarter, we expect to nearly double the number of sales
outlets carrying ProtiLife products. The approximately 1,640 additional points
of sale will bring the total number of stores selling ProtiLife to nearly
3,300 across Canada, and bring us rapidly closer to our initial objective of
4,000 outlets in Canada by year-end," Mr. Bourassa-Marineau added.
Highlights - Q2 2007
- Conclusion of a number of ProtiLife product distribution agreements
with Loblaws, A&P Canada, AmerisourceBergen Canada and Lawton's
- Distribution agreement and order from Spanish company Pronokal
For the quarter ended June 30, 2007, Ranaz posted sales of $3.5 million,
up 35.8% from $2.6 million for the same quarter of 2006. This increase is
primarily attributable to sales of ProtiLife and an increase in sales of
Protidiet products in the United States. Sales of $6,384,587 for the
six months ended June 30, 2007 were $1,019,166 or 19.0% higher than a year
earlier, for the same reasons cited above.
Gross earnings rose by $906,313 for the quarter ended June 30, 2006 to
$1,085,727 for the same quarter in 2007. On a sequential basis, second quarter
gross earnings were up strongly from the first quarter, rising from 24.7% to
31.3% of sales, mainly due to sales generated by the ProtiLife line. In the
coming quarters, the Company expects its gross earnings to continue to rise as
ProtiLife product sales increase, and gross margin as a percentage of sales to
remain stable at current levels. In the first half of 2007, gross earnings
amounted to $1,805,645 compared to $1,732,175 for the same period in 2006.
This increase would have been higher but for the strength of the Canadian
dollar against the US currency, marketing and pre-launch investments for the
new ProtiLife product line launched in 2007, and changes in the geographic
distribution of sales.
The second quarter ended with a net loss of $1,149,919 or $0.035 per
share compared to a loss of $75,427 or $0.002 per share for the second quarter
of fiscal 2006. The net loss for the first half of 2007 amounted to $1,977,770
or $0.066 per share compared to $82,960 or $0.005 per share for the same
period last year.
This loss is in line with expectations and is primarily attributable to
the major investment made to assure a successful Canadian launch of the
ProtiLife product line, which was supported by an important consumer
advertising and marketing program and is showing rapid sales growth.
Full details including the financial statements and notes thereto are
available on the Internet at www.sedar.com.
Management expects the Company's sales to grow in most of its geographic
segments. Sales of our ProtiLife product line are continuing to develop.
Already offered in 1,660 sales outlets at the end of the second quarter, the
ProtiLife product line will be introduced into 400 additional Loblaws stores
and 700 other Pharmaprix/Shoppers Drug Mart stores in the third quarter.
ProtiLife will also make its debut in almost 300 Pharmaplus, Rexall and
Herbies chain pharmacies belonging to the Katz Group, and about 200 Zellers
stores and 70 MetroPlus stores, thus doubling the number of sales points to
over 3,300 across Canada in the third quarter. The Protidiet line also
continues to post sales growth, particularly in the United States and Spain
following the addition of large new customers. Sales for July jumped by
$491,700 or 67.5% to $1,219,700 compared to $728,000 for the same month in
2006, and the trend is continuing to date.
The Company expects the current level of sales and administrative
expenses to decline in the next two quarters, as development and pre-launch
investments for the new ProtiLife line were absorbed during the first half of
the year. While investment in the marketing of ProtiLife in Canada will be
maintained, the Company's net loss should decrease substantially in the coming
quarters due to growth in product sales.
About Ranaz Corporation
Ranaz is a corporation specializing in the manufacture and marketing of
protein and dietary supplements in relation to weight loss and obesity
treatments. Its mission is to design, develop and market nutritional, protein
and dietary supplements under its own corporate brands, such as Protidiet and
ProtiLife, as well as under private labels. Ranaz shares have traded under the
symbol RNZ on the TSX Venture Exchange since December 29, 2006.
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.
Such risks include but are not limited to: the impact of general economic
conditions, changes in the regulatory environment in the jurisdictions in
which Ranaz does business, stock markets 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 future
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 included 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, Ranaz
Corporation, (450) 491-7106, Ext. 213, firstname.lastname@example.org; Jean
Walter, Vice President, MaisonBrison, (514) 731-0000, Ext. 223,