Ranaz reports 2011 second quarter and half-year results

MONTREAL, Sept. 1, 2011 /CNW/ -- 
    --  Adjusted operating earnings for the first six months bettered
        by 21%, from $424,604 in 2010 to $514,098 this year
    --  Net earnings turnaround for the half-year of 178%, from a net
        loss of ($59,578) in 2010 to net earnings of $46,346 in 2011



MONTREAL, Sept. 1, 2011 /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
 second quarter and half-year ended June 30, 2011.







Selected Consolidated Financial information for the six-month period
ended June 30, 2011

                                     2011      2010        Variation

Sales                           9,417,653 9,340,763           76,890

Gross profit                    2,877,877 3,008,930        (131,053)

Net earnings (loss)                46,346  (59,578)          105,924

Adjusted operating earnings (1)   514,098   424,604           89,494

 

Selected Consolidated Financial information for the second quarter
ended June 30, 2011

                                     2011      2010        Variation

Sales                           4,751,818 5,147,814        (395,996)

Gross profit                    1,441,154 1,809,762        (368,608)

Net earnings                       76,088   384,348        (308,260)

Adjusted operating earnings (1)   336,747   571,902        (235,155)

  (1) Refer to page 6 of the Management  Discussion and Analysis for
  the reconciliation of the adjusted operating earnings





Sales for the second quarter of 2011 totalled $4.8 million as compared to
 $5.1 million in the same quarter of 2010, decreasing by $0.3 million,
 or 7.7%. Sales for the first six months of 2011 reached $9.4 million, up $0.1 million
 over the same period of 2010. The sales increase was mainly due to the
 addition of new client accounts in 2011. This improvement was however
 affected by the negative impact of a higher valued Canadian dollar and
 the bad weather conditions in most major markets and a restrictive
 economic climate.


Gross profit amounted to $1.4 million for the three-month period ended June 30, 2011
 as compared to $1.8 million for the same quarter in 2010, representing
 30.3% and 35.2% of sales respectively for these quarters. For the first
 six months of 2011, gross profit was $2.9 million or 30.6% of sales compared to $3.0 million or 32.2 %
 of sales for the same period in 2010. The nominal gross margin
 percentage decrease for the first half of 2011 compared to 2010 was due
 to the negative impact of a stronger Canadian dollar and product sales
 and market mix changes.


Net earnings for the first half-year of 2011 amounted to $46,346, or $0.001 per
 share, compared to a net loss of ($59,578), or ($0.001) per share for
 the same period last year, representing an increase of 178%. The
 turnaround was mainly attributable to continued tightened cost controls
 and the one time termination compensation in 2010. Net earnings for the second quarter of 2011 amounted to $76,088, or $0.001 per share,
 compared to $384,348, or $0.006 per share, for the same period in 2010.
 The net earnings decrease largely results from the adverse effect of
 the Canadian dollar's greater appreciation.


Adjusted operating earnings for the second quarter of 2011 were $336,747 and $514,098 for the first
 half of 2011, compared to $571,902 and $424,604 for the same periods of
 2010.


Consolidated cash-flow


Cash flow from operating activities totalled $341,203 for the second quarter of this year and $437,448 for
 the first half of 2011, compared to $768,088 and $1,039,595 in the
 corresponding three-month and six-month periods of 2010.


Changes in non-cash from working capital items were $33,735 in the
 second quarter of 2011 as compared to $194,150 in the same quarter of
 last year. For the second quarter of 2011, these changes consisted
 mostly of increases in accounts payable and accrued liabilities
 partially offset by increases in accounts receivable.


For the first six months of 2011 and 2010, changes in non-cash working
 capital items decreased cash flow by $56,646 and increased it by
 $680,584 respectively. For the first six months of this year, these
 changes consisted primarily of increases in accounts receivable and
 inventories partially offset by increases in accounts payable and
 accrued liabilities.


"New client account sales development efforts are starting to pay off as
 their sales levels improve. Overall sales were however adversely
 affected by a significant appreciation of the Canadian dollar, as well
 as by first half-year bad weather conditions in most major markets and
 a restrictive economic climate which were unfavourable to the sale of
 our products. We remain confident that the on-going implementation of
 our new sales and marketing approach to better respond to market needs
 along with continued cost control and streamlining measures, greater
 international market competiveness and the impact of our new management
 team will improve overall results during the next years," stated 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. 


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table border="0" valign="top" tr td bRanaz Corporation   /bbr/ Alain Lévesque, CAbr/ Chief Financial Officerbr/ [phone], local 213    /td td bRanaz Corporation        /bbr/ Jean Bourassa-Marineaubr/ President and CEObr/ [phone], local 217 /td /tr /table p   /p 

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