KELOWNA, BC, Feb. 28 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) today
released its financial results for the fourth quarter and year-ended
December 31, 2007.
Sun-Rype's net sales increased in 2007 by 3.5% to $135.1 million (2006 -
$130.6 million), while gross profit decreased by $3.5 million. The increase in
net sales during the year was offset by increases in cost of sales, interest
expense and foreign exchange loss compared to 2006. Net earnings decreased in
2007 by 36.2% to $4.6 million or $0.43 per share (2006 - $7.3 million and
$0.67 per share).
"Sun-Rype's fourth quarter results were significantly impacted by the
effects of a labour disruption that occurred over the last eight weeks of 2007
and compromised our abilities to manufacture, distribute and promote our
products," says Eric Sorensen, President and Chief Executive Officer. "Sales
during this labour disruption, which continued until February 23, 2008, were
significantly reduced as a result of the required cancellation of most
promotional activity. Despite this, overall sales of both beverage and food
products increased in 2007 as consumers connected with Sun-Rype's emphasis on
the wholesome goodness of 100% fruit juices and 100% fruit snacks coupled with
continued product innovation."
Net sales in the fourth quarter of 2007 were $27.1 million, compared to
$33.3 million for the fourth quarter of 2006, a decrease of 18.5%. All of this
reduction is attributable to the effects of the labour disruption and the
resulting reduction of promotional activity. Net loss for the fourth quarter
of 2007 was $0.2 million (2006 - earnings of $1.2 million) resulting in loss
per share of $0.02, down from $0.11 earnings per share in 2006.
The Company is forecasting that significant losses will be experienced in
each of the first two quarters of 2008 as a result of the following projected
costs: direct costs of the recent labour disruption and its continuing
indirect costs; higher commodity costs; and the launch costs of new products.
A return to profitability is anticipated later in the year but this is not
expected to offset the earlier losses. These forecasts are necessarily based
on estimates and actual results may vary.
On February 28, 2008, the Company declared a quarterly dividend of $0.04
per common share, for a total of approximately $433,000, payable on March 15,
2008, to shareholders of record at the close of business on March 10, 2008.
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.
The foregoing are financial highlights only. The full annual management's
discussion and analysis, financial statements and accompanying notes of
Sun-Rype Products Ltd. for the year ended December 31, 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, 2008,
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 Operations and Retained Earnings
For the years ended December 31
(in thousands of dollars except per share amounts)
Net sales $ 135,134 $ 130,622
Cost of sales 93,298 85,313
Gross profit 41,836 45,309
Selling, general, and administrative 28,538 30,476
Amortization 4,186 3,858
Interest 148 42
Loss on disposal of property, plant and equipment 213 135
Foreign exchange loss 1,977 106
Earnings before income taxes 6,774 10,692
Income taxes 2,138 3,426
Net earnings and comprehensive income 4,636 7,266
Per share information
Basic and diluted earnings per share $ 0.43 $ 0.67
Dividends per share $ 0.15 $ 1.62
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, email@example.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, firstname.lastname@example.org; www.sunrype.com