Ranaz reports 2011 third quarter and nine months results

    







        --  Sustained profitability despite worldwide economic uncertainty
            and the Canadian dollar's strength

        --  Adjusted operating earnings of $739,672 for the first nine
            months of 2011 as compared to $735,134 for the same period in
            2010

        --  Net earnings of $66,476 for the first nine months of 2011
            compared to $110,971 to the corresponding period of 2010




 MONTREAL, Nov. 29, 2011 /CNW Telbec/ - Ranaz Corporation ("Ranaz")  , a company specializing in the manufacturing and marketing  of protein and dietary supplements, reported its results today for the  third quarter and nine-month period ended September 30, 2011. 

  





    Selected Consolidated Financial information for the
    nine-monthperiodended September 30, 2011

     

                                               2011       2010 Variation

    Sales                                13,457,381 13,524,990  (67,609)

    Gross profit                          4,047,377  4,266,519 (219,142)

    Net earnings                             66,476    110,971  (44,495)

    Adjusted operating earnings  (1)        739,672    735,134     4,538

     

    Selected Consolidated Financial information for the third
    quarterended September 30, 2011

     

                                               2011       2010 Variation

    Sales                                 4,039,728  4,184,227 (144,499)

    Gross profit                          1,169,500  1,257,589  (88,089)

    Net earnings                             20,130    170,549 (150,419)

    Adjusted operating earnings (1)         221,003    310,530  (89,527)

     

    (1) Refer to page 7 of  the Management  Discussion and Analysis for
    the reconciliation of the adjusted operating earnings






 Sales for the third quarter of 2011 totalled $4.0 million as compared to $4.2  million in the same quarter of 2010, decreasing by $0.2 million or  3.5%. Sales for the first nine months of 2011 reached $13.5 million, a level  similar to the same period of 2010. Sales stability resulted from both  upward and downward factors. The addition of new client Protidiet and  private label brand accounts was the key factor in maintaining sales  levels similar to those of the same periods in 2010. Sales were however  affected by the impact of a higher valued Canadian dollar as its  average exchange rate for the US dollar during the first nine months of  2011 increased significantly by 6%. Adverse weather conditions in most  major markets and a restrictive economic climate were also unfavourable  to the sale of our products. 

 Gross profit amounted to $1.2 million for the third quarter of 2011 as compared to  $1.3 million for the same quarter in 2010, representing 29.0% and 30.1%  of sales respectively for these quarters. For the first nine months of  2011, gross profit was $4.0 million or 30.1% of sales compared to $4.3 million or 31.5 %  of sales for the same period in 2010. The nominal gross margin  percentage decrease for the first nine months of 2011 compared to 2010  was due to the negative effect of a stronger Canadian dollar and  product sales and market mix changes. 

 Net earnings for the third quarter of 2011 amounted to $20,130, or $0.000 per share,  compared to $170,549, or $0.003 per share for the same period last  year. Net earnings for the first nine months of the current year totalled $66,476, or  $0.001 per share, compared to $110,971, or $0.002 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 and  worldwide economic uncertainty. 

 Adjusted operating earnings for the third quarter of 2011 were $221,003 and $739,672 for the first  nine months of the current year, compared to $310,530 and $735,134 for  the same periods of 2010. 

 Consolidated cash-flow 

 Cash flow from operating activities for the third quarters of 2011 and 2010 totalled respectively  ($316,230) and ($330,829) while amounting to $121,218 and $708,766  respectively for the first nine months of 2011 and 2010. 

 Changes in non-cash from working capital items were $597,070 in the  third quarter of 2011 as compared to $685,937 in the same quarter of  last year. For the third quarter of 2011, these changes consisted  mostly of decreases in trade and other payables partially offset by  increases in accounts receivable. For the first nine months of 2011,  changes in non-cash working capital items decreased cash flow by  $653,716 as compared to $5,353 pour same period of last year. The  changes for the first nine months of this year result largely from  inventory increases. 

 "The continued strength of the Canadian dollar, weakened American and  European markets, adverse weather conditions and a restrictive economic  climate unfavourable to the sale of our products count among the many  factors which impacted our performance. Nonetheless, thanks in part to  the addition of new customer accounts and continued cost control and  streamlining measures, we sustained profitability. Moreover,  substantial new product development efforts since the beginning of the  year to better answer specific market needs are starting to pay off.  Positive market response during initial new product promotional  launches late in the third quarter bodes well for the increase in our  customer base during the coming months. Furthermore, we continue to  improve efficiencies and remain confident in our capacity to improve  results", 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. 

Ranaz Corporation


CONTACT:  Ranaz Corporation             Ranaz CorporationAlain Lévesque, CA            Jean Bourassa-MarineauChief Financial Officer       President and CEO(450) 491-7106, local 213     [phone], local 217 


    

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