Ranaz reports fourth quarter and fiscal 2010 results

MONTREAL, April 27 /CNW/ -- 
   Return to profitability:


    --  Net earnings of $136,000 for 2010 compared to a net loss of
        $773,000 for 2009
    --  Adjusted operating earnings of $928,000 for 2010 compared to an
        adjusted operating loss of $590,000 for 2009



MONTREAL, April 27 /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
 fourth quarter and fiscal year ended December 31, 2010.





Selected Consolidated Financial information per year

                                    2010       2009   Variation

Sales                         17,890,000 19,088,000 (1,198,000)

Gross profit                   5,614,000  4,963,000     651,000

Net earnings (loss)              136,000  (773,000)     909,000

Adjusted operating earnings      928,000  (590,000)   1,518,000
(adjusted operating loss) (1)





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


Sales reached $4.4 million for the fourth quarter and $17.9 million for
 2010, a decrease of 2.2% and 6.3% respectively as compared to $4.5
 million and $19.1 million for the same periods in 2009. The decrease is
 mainly due to the Canadian dollar's higher value against the US dollar
 and the Euro. The rationalization of low margin products started in
 2009 resulted in lessening private label bar line sales with an ensuing
 temporary negative effect on overall sales. However, the situation
 helped to improve gross margin. Sales for the key Protidiet product
 line increased compared to 2009 due to higher demand in the United
 States and Canada.


Gross profit was $1,347,000 for the fourth quarter and $5,614,000 for
 the year compared to $1,103,000 and $4,963,000 for the same periods in
 2009. Gross profit in the last quarter of 2010 represented 30.9% of
 sales versus 24.8% for the same quarter in 2009 and 31.4% in 2010
 versus 26.0% in 2009.


Adjusted operating earnings amounted to $192,000 for the fourth quarter
 and $928,000 for fiscal 2010 as compared to the adjusted operating loss
 of $125,000 and $590,000 for the same periods in the preceding year.
 The variation of the adjusted operating earnings versus the adjusted
 operating loss represents a marked increase of 257.3% in 2010.


Net earnings totalled $136,000, or $0.002 per share, for fiscal 2010
 compared to a net loss of $773,000, or $0.015 per share, for 2009. A
 net loss of $14,000, or $0.0001 per share, was registered for the
 fourth quarter of 2010 compared to the net loss of $251,000, or $0.0070
 per share, for the same quarter in 2009.


"The return to profitability attests to the soundness of the measures
 implemented during the last few years. Consolidation of our production
 activities has enabled us to achieve greater manufacturing
 efficiencies. The low margin product rationalization program as well as
 higher productivity and tightened cost control throughout the company
 have greatly helped to improve margins. Moreover, we strengthened the
 company's management team during the year with the appointment of three
 top professionals to the key functions of Vice-President, Sales and
 Marketing, Vice-President, Finance and Administration and Director,
 Manufacturing Operations", stated Jean Bourassa-Marineau, President and
 founder of Ranaz.


Outlook


"As economic conditions improve and demand for our products continues to
 grow stronger, we are currently implementing a more efficient sales and
 marketing strategy to better respond to market needs and increase
 sales. We are confident this initiative combined with on-going cost
 control and streamlining programs, greater competitiveness on
 international markets and the impact of our new management team will
 improve overall results for the current year", concluded Mr.
 Bourassa-Marineau.


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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