KELOWNA, B.C. – Sun-Rype Products Ltd. (TSX:SRF) cited higher costs and lower margins Wednesday as the manufacturer and marketer of juices and fruit snacks swung to a loss in the third quarter.
Kelowna-based Sun-Rype said it posted a net loss of just under $3 million or 28 cents per share in the three months ended Sept. 24. That compared with a net profit of $1.1 million or 10 cents per share in the same 2010 period.
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Sales revenue in the three months ended Sept. 24 was $39.3 million, up from $34.8 million in the year-earlier period. However, that included $5.5 million in net sales from acquisitions.
“Growth in non-branded sales, including sales attributable to our two business acquisitions, was partially offset by lower sales of branded products, resulting in higher net sales in the third quarter and first three quarters of 2011,” president and CEO Dave McAnerney said in a release.
“Higher cost of goods sold due to rising commodity prices and a greater proportion of sales of lower margin, non-branded sales led to reduced gross profit in 2011 compared to the same periods of 2010.”
Meanwhile, the company said it anticipates that the factors contributing to losses in the third quarter will continue for the balance of 2011 and result in net losses in the fourth quarter of 2011.
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